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Click here to find out how the Quick Aid Estimator works.
Click here to find out how College Aid Calculator works.
Click here for disclaimer... AND for tips on using this software.
College Aid Calculator
This software has been
designed to download temporary files to your hard drive, so you will be able to
work on this program without going back and forth to a server. If you become
disconnected or interrupted, you will not lose your work.
[Scroll down to
see ALL of this message.]
The [College Aid Calculator] button will
appear at left when the software is ready to use. Click it to go to the first
data-entry screen. Click in each box to enter (or edit) any number.
A
[ Next ] button will advance you to the next Step. [ Back ] will
go to the previous Step. When all Steps are completed, a [ Menu ] button
will allow you to return to any Step.
"Help Messages" appear
here.
As you complete each line of the software, read these "Help
Messages" to see what information to enter. It will take up to ten minutes for
you to enter income and asset information and be able to print your Expected
Family Contribution Report.
Click here to return to the top.
Student's Current Year in School
Enter the student's grade during the 2007-2008 academic year. Future College Costs AND future Expected Family Contribution are based on the student's current year in school.
Where are you from?
Click [Next] to continue.
Note: State grant eligibility may be affected if a dependent student is not a legal resident in the same state as parent(s).
Most Students are Dependent on parents. Click [Next] if this applies.
Divorced/Separated Parents: Report data for parent with whom the
student lived most during the last 12 months. If neither, report data for parent
who provided the most financial support. If this parent is remarried, include
stepparent. Colleges that award private (non-federal) aid may also want
data from the noncustodial parent.
Tax Filing Status: Click correct filing status, then click Ages box.
Note: By examining tax filing status, etc., this software determines
if the taxpayer is required to file a 1040 or is eligible to file shorter
1040A or 1040EZ. If the family qualifies to file a short form and/or meets
other requirements, federal aid formulas do not count assets. Assets
are always counted by schools that award private aid.
Tax Filing Status
:Tax Filing Status:
:Tax Filing Status:
Note: Parent 2 (or Independent Student's Spouse)
receives one exemption. All other exemptions will be allocated to Parent 1 (or
to Independent Student). Tax Filing Status: Individual Return. Click correct filing status.
Note: This software uses tax filing status, etc., to determine if the
taxpayer is required to file a 1040 or is eligible to file shorter 1040A or
1040EZ. If the family qualifies to file a short form and/or meets other
requirements, federal aid formulas do not count assets. Assets are
always counted by schools that award private aid.
Blind or Over 65: If no family member is blind or over age 65, click [Next]. Otherwise, make the appropriate selection(s). Then click [Next]. If using the Standard Deduction when filing tax forms and no one is
Blind or Over 65 in the household, click [Next] to continue. OR, click [Itemized Deduction]. If a family member is Blind or Over 65, uncheck the "No one is
Blind..." box and make the appropriate
selection. How Many Exemptions claimed in 2007? IRS 1040, line 6d; 1040A, line 6d
Family Size?
.
.
.
.
Itemized Deductions:
IRS 1040, line 40
Enter the dollar amount of total itemized deductions
claimed or expected to be claimed.
If a family member is Blind or Over 65, uncheck the "No one is
Blind..." box and make the appropriate
selection.
.
Do not include any family members who are filing their own tax returns and
claiming their own exemptions.
.
How many people live in and receive over half of their SUPPORT
from the same household as the student? Be sure to include the student.
This is
usually the same number as
Exemptions.
Children in College?
If student is independent and expecting to attend college at the same time as his/her child(ren), enter the number of child(ren) who may attend at the same time.
Be sure to include this number in the "How many will be in College" box.
Untaxed Income
All colleges count certain income items that are
not taxed by the IRS. Click the [worksheet] button to see a list. The worksheet includes both
untaxed income items and exclusions from income.
Untaxed Income (Some):
Colleges that award their own private aid funds usually don't allow "tax losses" to reduce income.
Enter (as a positive number) any 2007 IRS 1040 losses--and to that
add the amount of any depreciation taken. TIP: ask how the college treats
capital gain/loss.
Exclusions
Click the [worksheet] button and use it to calculate
exclusions that are available at all colleges.
Independent Students
Do NOT enter federal work-study or AmeriCorps benefits or
grant or scholarship income listed as taxable on a previous screen. This income
has automatically been
excluded.
Exclusions (Some): many colleges and universities that award
private aid funds allow an exclusion from parents' income for some or all
of the cost of private elementary and/or secondary school tuition for the
education of a student's younger brothers and sisters. The maximum per-sibling
allowance varies from college to college. Some allow $6,021 (based on the
national average for private school tuition); some allow $7,900 (based on a
different survey of the national average for public school tuition); some set
their own allowance.
Best advice: ask each college that you’re
considering what they allow. Enter, for all siblings during the 7/1/07 - 6/30/08
school year, the total “allowed” tuition. If you’re not sure what to enter, be
conservative: enter nothing; find out what your EFC is, then come back here and
enter the lowest amount per student ($6,021 if you spent that much);
[Re-Calculate], then see how much your EFC changes.
Medical/Dental Expenses: most colleges and universities that award
private aid allow excluding high unreimbursed medical/dental expenses
(including medical and dental insurance premiums). If deductions are itemized,
this is the amount on Form 1040, Schedule A, line 1. If out-of-pocket
Total spent (including medical/dental insurance premium)
exceeds the amount to the left of this box, enter the total unreimbursed expenses here.
Total of Cash, Checking, Savings balances as of the date aid forms are
to be filed.
OR
Estimate balances for Jan. 1,
2008.
Business / Investment Farm
If your business or farm has over 100 full-time or full-time equivalent employees, enter its value (less debt) as of today or as of the date aid forms are to be filed. If the
net result is negative, make no entry.
Business / Farm
if you have a family business or farm with less than 101 full-time or full-time equivalent employees, enter value (less debt) as of today or as of the date aid forms are to be filed. Include business portion of family farm.
Residence Equity: most colleges and universities that award their own private aid funds count home equity (value minus debt). Entries in this box will not affect federal aid calculations.
If owners live on and work a family farm, enter the Residence portion of farm equity in this box.
Enter Total: federal work-study income from 2007 W-2, Box 1 Total(s) + AmeriCorps benefits + the taxable portion of any scholarships and grants received in excess of tuition, fees, books, and required supplies. The non-taxable portion of scholarships and grants will not be entered or counted.
Self-Employment Income:
IRS 1040, lines 12 + 18 + Box 14 of IRS Schedule K-1 (Form 1065)
Half of any self-employment tax
will automatically be deducted as an Adjustment.
Use a minus sign to enter a negative number.
Other Taxable Income = Total of: interest + dividends + rental real estate + unemployment income + taxable annuity income + dividends from Alaska Permanent Fund. IMPORTANT--if there is a capital gain or loss, rental income or loss, or Other income or loss, include these and ALSO ENTER at least $1 in the Self-Employment box. This allows the software to determine the specific type of federal financial aid status. Use a minus sign if Total is negative.
Adjustments
From your IRS 1040, line 36 or 1040A, line 20,
subtract any number that appears next to this box (it is an automatic
calculation of half of your self-employment tax) and enter the result in this
box as a positive number.
Tax Exemption Claimed By:
If Parent(s) claim the IRS tax exemption, click [Next] .
If Student claims his or her own tax exemption, select [Student] then click [Next] .
Untaxed Income
Enter total amounts paid in 2007:
IRA/Keogh/SEP account + untaxed Social Security benefits + tax-exempt interest +
foreign income exclusion + workers' compensation + cash paid on student's behalf
+ Refugee Assistance.
If the student claimed a Hope or Lifetime Learning
tax credit at IRS Form 1040, line 49 or at 1040A, line 31 and this is the ONLY
number for this box, enter it as a negative number. If a negative Hope or
Lifetime Learning tax credit is offset by positive income numbers, enter the
correct positive or negative number.
Total of Cash, Checking, Savings balances as of the date aid forms are
to be filed.
OR
Estimate balances for Jan. 1, 2008.
Business / Investment Farm
If student owns all or part of a business or of
an investment farm that has over 100 full-time or full-time equivalent employees, enter the value (less debt) as of today or as of the date aid forms
are to be filed. If the net result is negative,
make no entry.
Business/Farm Equity: (some colleges):
if student owns all or part of a family-owned and family-controlled business and/or farm that has under 101 full-time
or full-time equivalent employees, enter student's equity (value less debt) as of
today or as of the date aid forms are to be filed. Include business portion of student's equity in a family farm. If the net
result is negative, make no entry.
Residence Equity (some colleges):
if a dependent student owns part or all
of the family residence, including "family farm" residence, enter the student's
equity (value less debt), as of today or as of the date of filing aid forms. Entries in this box will not affect
federal aid calculations.
Other Asset Values:
--Include in this box
any nonretirement variable annuities in the student's name.
Most private
colleges and universities do not ask for the value of dependent student's
retirement accounts, life insurance cash value, or cars. Do NOT include
these items unless you know that the school counts them. (Retirement accounts
will be counted for independent students.)
Minimum Contribution from Income
Most colleges and universities that award their own aid funds expect students to make a contribution from income--usually $1,550 for freshmen and $2,150 for other classes. If you know that the school expects a different amount, you may make an entry that overrides the number in this box.
Untaxed Income (Some).: Some
colleges and universities that award their own private aid funds do not allow "tax losses" to reduce
income. Enter (as a positive
number) any 2007 IRS 1040 losses--and to that add the amount of any
depreciation taken.
TIP: ask how the
college treats capital gains and
losses.
Click [Next] to see the EFC estimate.
Keep in mind that PLUS and Alternative loans are available to help families pay EFC (Expected Family Contribution) and/or any "Gap" not covered by aid.
Click [Next] Estimated EFC and
Inflation: Using the "What-If" Indicator:
FM: data on the FAFSA (Free
Application for Federal Student Aid) form is analyzed using federal (FM)
methodology to determine the Expected Family Contribution (EFC). All colleges
use FM methodology when awarding federal funds. Work-Study/Grant Income (Part
of IRS 1040, line 7): enter total federal work-study income from 2007 W-2, Box 1
Total(s) + AmeriCorps benefits + taxable portion of scholarships and grants (the
amount that did not go for tuition, fees, books and
required supplies). This income is taxable, but excluded when calculating EFC.
No entry is needed for the non-taxable portion of scholarships and
grants. Self-Employment Income: Other Taxable Income: Total Adjustments: From your
IRS 1040, line 36 or 1040A, line 20, subtract any number that appears next to
this box (it is an automatic calculation of half of your self-employment tax)
and enter the result in this box. Please Wait. To enter
data, click:
.
.
EFC (Expected
Family Contribution) is based on analysis of income and assets. It is adjusted
annually for inflation and is further adjusted based upon any expected annual
pay increase. Please edit the percent displayed, if necessary.
.
1. Click [Menu] to go to any
screen.
2. Change any number
or entry.
3. Click the
[Re-Calculate] button.
4. Test
one change at a time.
5.
Sometimes there is no change.
6. Compare New Total and Original.
7. See FM / IM explanation below.
If families meet certain criteria, the FM formulas do not
count assets. (This software uses income answers to determine whether a family
qualifies.)
IM: some colleges use institutional methodology (IM) to
determine EFC when awarding private
funds.
.
2007 W-2, Box 1 Total(s)
If W-2
Forms are not available, enter the amount of pre-tax gross wages, not take-home
pay.
Independent Students: do
NOT include federal work-study in the W-2 box to the
left. It belongs in the Work-Study box.
.
< wsswage
.
-IRS 1040, lines 12 + 18 + Box 14 of IRS Schedule K-1 (Form
1065)
Half of any self-employment tax will automatically
be deducted as an Adjustment.
Use
a minus sign to enter a negative number.
.
(If filing a joint return, enter total for husband and
wife.)
Please read to the end of
this help.
Use a minus
sign to enter a negative number. Enter total
interest + dividends + taxable refunds + unemployment income + taxable Social
Security or railroad retirement benefits + IRA, pension and annuity income +
dividends from Alaska Permanent Fund + *** capital gain or loss + alimony income
+ rental income or loss + S corporation income or loss + any other taxable
income or loss.*** [If any of the items between *** and
*** are included, please ALSO enter at least $1 in the self-employment box.
This allows the software to determine the specific type of federal financial aid
status.]
.
If you don't know your
Total Adjustments, enter in this box as a positive
number the total of the amounts that follow.
Adjustments include total contributions to IRA, SIMPLE,
SEP, and Keogh (you will also be entering this same amount later as Untaxed
Income). Other adjustments include: student loan interest, moving expenses,
self-employed health insurance deduction, penalty on early withdrawal of
savings, jury duty pay you gave your employer, alimony paid, Archer Medical
Savings Account deduction, domestic production activities deduction, etc.
.
.
[Start Calculator]
Help messages appear here. As you complete each line of the software, read these help messages carefully, so you will know what information to enter.
Siblings' Ages: Some
colleges provide a savings allowance for families with children who may attend
college later. Parents of Dependent Students: enter
ages of the student's pre-college siblings (NOT this
student or siblings that will attend at the same time as this student.
Independent Students: enter
ages of pre-college children who will not attend college at the same as the
independent student.
Loan Payment Calculator:
1. Select a Loan Type.
2. Fill in all of the fields
except for the one you want to calculate.
3. Click [Calculate].
Interest rate must always be filled in.
120 months = maximum payback period. Minimum payments
are:
Stafford minimum: $50/month
Perkins minimum: $40/month
PLUS
minimum: $50/month
Menu Help:
Use the Menu for quick access to
any screen.
As you play
"what-if" use the Menu to go to any screen; then change any number and click the
[Re-Calc] button. Your New Total and Original contribution amounts will be displayed in the
box below.
Independent students:
Please scroll down.
Parents of dependent students:
enter value less debt for: stocks, bonds, other securities, mutual funds, money
market funds, CDs, real estate other than home, trust funds, installment and
land sale contracts.
Include parent-owned Coverdell
accounts, prepaid tuition plans offered by a state, 529 college savings
plans, and 529 prepaid tuition plans for this dependent student AND his or her
brothers and sisters.
Independent students: enter value less debt for stocks,
bonds, other securities, mutual funds, money market funds, CDs, real estate
other than home, trust funds, installment and land sale contracts. Include all
Coverdell accounts, prepaid tuition plans offered by a state, 529 college
savings plans, and 529 prepaid tuition plans owned by the independent student
whether the student, spouse or child is the beneficiary.
Independent Students:
Please scroll down.
Parents of Dependent
Students:
enter the total value of:
--nonretirement variable annuities,
--Assets of the student's brothers and sisters (NOT including Coverdell accounts, prepaid tuition plans
offered by a state, 529 college savings plans, or 529 prepaid tuition plans)
--Do NOT include the value of
retirement funds, life insurance cash value, or cars unless you know that they
are counted by the college.
Independent Students: enter 75% of the value of any
IRA, Keogh, 401k, 403b, etc., accounts plus any nonretirement variable
annuities.
2007 IRS Form 1040, line 66a; 1040A, line 40a; 1040EZ, line 8a.
2007 IRS Form 1040, line 68; or 1040A, line 41.
that is received for all children residing in the student's household in 2007. Do NOT include foster care or adoption payments.
Temporary Assistance for Needy Families (TANF) payments received in 2007.
received in 2007 for all members of the family including the student.
tax-deferred pension and savings plans. This includes, but is not limited to, amounts reported on the W-2 Form in Boxes 12a through 12d, codes D, E, F, G, H, and S.
from IRS Form 1040--total of lines 32 + 28; or 1040A, line 17
2007 IRS Form 1040, line 8b; or 1040A, line 8b
2007 IRS Form 2555, line 45; or Form 2555EZ, line 18
2007 IRS Form 4136, line 17 (nonfarmers only)
any 2007 amounts received as a member of the military, clergy, etc. Include cash payments and cash value of benefits.
include Disability, Death Pension, or Dependency & Indemnity Compensation (DIC) and/or VA Educational Work-Study allowances
if it has not been entered in another field
Include only support PAID for children living in another household.
enter any 2007 taxable income that resulted from converting an amount from a traditional IRA to a Roth IRA. Be sure to inform the college.
Trusts: if student is the beneficiary of a trust fund, enter his/her share of current principal.
Student Investments: list total asset equity (value minus debt) as of date of filing aid form (current value if college is years away). Include: stocks, bonds, other securities, mutual and money market funds, CDs, and real estate other than the home. If the net result is negative, make no entry. Do NOT include Coverdell accounts, prepaid tuition plans offered by a state, 529 college savings plans, or 529 prepaid tuition plans.
Family Size?
How many people live and receive
over half of their SUPPORT from the same household as the student? Be sure to
include the student.
Make an
entry. Click [Tab] to continue.