Income Levels For Fafsa

11 20 2009 at 2 15 pm.

Income levels for fafsa. Based on the information in your tax return. For the 2020 2021 cycle if you re a dependent student and your family has a combined income of 26 000 or less your expected contribution to college costs. Okay i think there are some smaller grants as well but they usually total less than 1000. Currently the fafsa protects dependent student income up to 6 660.

11 500 of income will get the maximum allowance. Between the employment expense allowance and adjustments for taxes that income would add virtually nothing to efc. Recipients of the most popular federal grant program pell grants typically have a family income of 20 000 or less though students with a family income of up to 50 000 may be eligible. And it s limited to 35 of the lower income or a maximum of 4 000.

While income is an important factor in determining aid eligibility there are a myriad of other factors including the cost of individual colleges and the generosity of their financial aid programs. Although there are no fafsa income limits there is an earnings cap to achieve a zero dollar efc. For parents the allowance depends on the number of people in the household and the number of students in college. In the absence of income limits calculating your efc provides a handy shortcut to determining if your student will qualify for financial aid or should instead concentrate on schools that award.

Pell grant eligibility is a requirement for several other federal grants. As mentioned above there is no income limit for fafsa this year. If your financial circumstances have changed due to covid 19 you should still complete the fafsa based on the information in your tax return. But there is a cap on the earning technically the lowest threshold of income which means your expected family contribution efc will stand at 0.

If you re a dependent student and your family s annual income if less than 26 000 your efc will be considered zero. The fafsa uses your adjusted gross income so the income you report will be reduced by any irs allowable adjustments such as payments to an ira or half of the self employment tax. The ceiling for the pell grant is an efc of about 4700 which translates to an income around 40 000. Eligibility for the federal pell grant is based on the expected family contribution efc not income.

Excluded income non taxable income combat pay and government assistance is generally excluded from the fafsa as income. Here is more information about income requirements and the fafsa. The only grant money offered by fafsa is the pell grant.