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Change to 2000-2001 EFC Formula 1

PublicationDate: 1/18/2000
Summary: Change to 2000-2001 EFC Formula 1
Author: PSS - Program Systems Service

Posted on January 18, 2000

To: Financial Aid Administrators
From: U.S. Department of Education, Student Financial Assistance
Re: Change to 2000-2001 EFC Formula 1

Late last week we discovered that a specification for the 2000-2001 Expected Family Contribution (EFC) for Formula 1, Dependent Student (Full Calculation) was not correct. There was a change in this area required in the 1998 Reauthorization of the Higher Education Amendments that we did not get quite right.

Step 11 of Formula 1 should read “If Parents’ AAI (Adjusted Available Income) is negative: STI (Student's Total Income) + AAI = Adjusted STI”. The current specifications in Step 11 reference AI (Available Income).

We have made the correction to the 2000-2001 Central Processing System (CPS) prior to start up, and all CPS outputs are calculated correctly. The correction was made to the estimated EFC calculations on the 2000-2001 FAFSA on the Web and Renewal FAFSA on the Web sites today, January 18, 2000. Our research indicates a small population (less than 5%) of ALL estimated calculations may have been affected by this formula change.

FAFSA Express and EDExpress 6.0, however, do not have the correct estimated calculation. An EDExpress service release (6.0.1), which will include the correct estimated EFC calculation, will be available on SFADownload on February 7, 2000. FAFSA Express will be modified and a new version made available on the SFADownload as soon as possible. New FAFSA Express diskettes will also be created and made available for shipment as soon as possible.

Corrected Needs Analysis Servicers (NAS) Specifications and Test File updates will be issued as early this week as possible. The update will be issued via email as usual.

We recognize that this late change may impact your system for 2000-2001. We regret the inconvenience this creates for you and your school. If you have any questions regarding the changes to EDExpress, please call CPS Customer Service at 800-330-5947, option 2 or send a message to SFATECH@INET.ED.GOV.