NASFAA Creates Spreadsheets to Estimate Effects of State Tax Allowance Changes on Parental Contributions by State

In response to many requests from Members, NASFAA has created a set of spreadsheets that estimate the changes in parental contribution due to the scheduled changes in the state/local tax allowances in the need analysis formula for 2005-2006.

These tables compare Parental Contributions (PCs) calculated using the current 2004-2005 Federal Methodology (FM) tables with PCs calculated using the revised 2005-2006 award year FM tables published in the December 23, 2004 Federal Register.

Each of the PCs in the spreadsheets is calculated based on the indicated income level, and assumes that a family of four will have one child in college during the 2004-2005 and 2005-2006 award years; that the family will have zero contributions from financial assets; and zero student contribution. The calculations were made for each of the 50 states and the District of Columbia. The spreadsheet was created by Kelli Williamson, NASFAAs Research Assistant.

The spreadsheets may be viewed on-line or by going to the NASFAA Student Aid Research Center. NASFAA Members can either view the tables on-line or download them into their own computer systems.

By Kenneth Redd
NASFAA Director of Research and Policy Analysis

Posted March 4, 2005 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2005. Redistribution to non-NASFAA institutions is prohibited
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