For those parents who have decided to try out their own EFC calculations, there are some updates that you will need to know for the 2013 calculations which begin on January 1st.
The Parent Asset Protection Allowances have changed significantly for both Two-Parent and One Parent families. The APA’s have decreased across the board, resulting in an unfavorable change for families, as less of their assets are now protected from the financial aid formula.
A portion of the calculation is now the age of the older parent times a thousand, minus $10,000. Remember that these unprotected parent assets are assessed at 5,6%,
The Parent Income Protection Allowances have increased across the board, resulting in a favorable change, as more of their income is now protected from the aid formula. The calculation will now be $26,000 plus $5000 for each additional family member. The student IPA has also increased to $6,130 for 2013
Some changes to the FAFSA formula have also necessitated a change to the Income Factor and we now suggest using 24.5% for incomes below $60,000 and slide up to a maximum of 35% for incomes above $200,000
If you do not know your EFC yet, we will be most welcome to assist you in this calculation. We strongly suggest that clients KNOW their EFC and make the necessary financial changes in order to make this most efficient BEFORE the 31st December. Contact dave@collegeplanningamerica.com 
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