All tests will include a combination of multiple-choice and scenario-based questions. The following examples are similar in structure and scope to the questions that will appear on the test for this topic.
3. A 26-year-old student completes the FAFSA. Her total income is $26,000, she was required to file a Form 1040, and she is not married and has no children. Her parents’ income is $49,000 and they completed a Form 1040A. Which formula will be used to calculate this student’s EFC?
4. The first ISIR for a dependent student shows a parent available income of $53,000 and a discretionary net worth of $11,000. The student makes a correction to the FASFA and the only change on the second ISIR is that the age of the older parent changed from 45 to 54. The EFC on the second ISIR will
5. You receive an ISIR for a dependent student listing one parent’s information. The student did not qualify for either of the alternate formulas. The parent has a negative adjusted available income and a net worth of $2,012, and the student had income of $17,250. Subsequently, you approve a dependency override appeal for the student. The EFC on the new ISIR, which reflects the student’s independent, is higher than the original EFC when the student was dependent. What is the most likely explanation for why the EFC increased?
Publication Date: 2/15/2017