Financial Tips

Test Your Knowledge of Financial Aid Reportable Assets
(Updated: 03/04/2019)

The Free Application for Federal Student Aid (FAFSA) uses the assets and income of both the parents and the student to calculate the expected family contributions (EFC).  The EFC is a measure that determines how much federal aid a student may receive.

Which of the following statements is false regarding the calculation of the EFC?

 

A.  Up to 5.64 percent of the value of the parents’ assets will affect the EFC.

B.  Up to 20 percent of the value of the student’s assets will affect the EFC.

C.  Up to 50 percent of the amount taken out from a grandparent-owned 529 plan to pay for education expenses for the student will affect the EFC.

D.  Up to 100 percent of retirement accounts, such as 401(k)s, pension plans, and IRAs, will affect the EFC.

 

Fact vs. Fiction

Viewpoint Financial Advisors understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. We created this series as a way to present and debunk some of the most common financial myths.

Last Updated: 3/4/2019