Defining Federal and Institutional Methodologies

Select the INAS data source for the INAS process to use to retrieve student information. Select:

Both F/I (both federal and institutional) to use both sets of data to calculate INAS for either Profile or ISIR records.

Federal to use only federal data to calculate INAS for ISIR records only.

Institutnl (institutional) to use only institutional data to calculate INAS for PROFILE records only.

Select the INAS calculation type:

FM (federal methodology) to calculate INAS for ISIR records only.

FM & IM (federal methodology and institutional methodology) to calculate INAS for either PROFILE or ISIR records.

IM (institutional methodology) to calculate INAS for PROFILE records only.

Select to calculate and display federal tax for the student as defined by INAS.

Select to calculate and display federal tax for the parent as defined by INAS.

Select to calculate a parental contribution for independent students if parental data is available. Parental contribution is calculated but not added to the EFC.

Click this link to access the FM Budget Durations page, which shows academic and non-standard durations for both dependent and independent students.

Click this link to access the EFC Proration Options page.

Select a value to determine the institutional EFC displayed on the Need Summary page and used in the Award Entry component. Values are:

Est Fed (estimated federal methodology): Select to display and use the EFM-EFC.

Greatest: Select to compare base, IM with options, and estimated federal EFC, and then use the greatest EFC value of the three.

Inst W/Opt: Select to use the IM-EFC as a result of the calculation of IM with options.

Inst: Select to use the IM-EFC as a result of the base IM calculations.

Select an application source. Values are:

FT CSL (full-time Canada Student Loan): Used in Canadian Need Analysis.

Inst App (institutional application).

PT CSL (part-time Canada Student Loan): Used in Canadian Need Analysis.

Profile.

Select the state in which your institution is located. INAS uses this field to determine a student's budget requirements.

Enter the number of months for the academic term to be considered during need analysis for dependent students.

Enter the number of months for the nonstandard term to be considered during need analysis for dependent students.

Enter the number of months for the academic term to be considered during need analysis for independent students.

Enter the number of months for the nonstandard term to be considered during need analysis for independent students.

Enter the number of months for the academic term to be considered during need analysis for dependent students.

Enter the number of months for the nonstandard term to be considered during need analysis for dependent students.

Enter the number of months for the academic term to be considered during need analysis for independent students.

Enter the number of months for the nonstandard term to be considered during need analysis for independent students.

Select how the parent AGI is represented. Values are:

CSS Deflt (CSS default)

Use Cmptd (use computed)

Use Rptd (use reported)

Use TaxRtrn (use tax return)

Select to adjust the cost of living calculation based on regional COL differences for an independent student or for the parent of a dependent student. Values are:

No

Stu/Par (student/parent)

Yes Par (yes parent)

Yes Stu (yes student)

Select to adjust the emergency reserve allowance for both students and parents, for independent students, or for parents only. Values are:

No

Yes-Both

Yes-Indep (yes independent)

Yes-Parent

Select a value to determine an appropriate ASG total income percentage. This percentage is used as an allowance against income.

Values are:

• Private

• Pub/Priv

• Public

Select a value to determine which Available Income Assessment Rate table to use. Values are:

• Alternate

• Standard

Select 5%-25% to have the EFC calculation process assess student assets at 5 percent and the student's trust funds at 25 percent when calculating the student contribution portion of the EFC.

Select All Assets to have all of the student's assets count as parent assets. Student assets are summed in the parent column. These calculation adjustments occur:

1. Family Total Net Worth (FTNW) FTNW = Parents' Total Net Worth (NW) + Student's Total NW.

2. Family Discretionary Net Worth (FDNW) FDNW = FTNW - Asset Protection Allowances.

3. The Asset Conversion rate is then applied to the FDNW to produce the family contribution from assets (FCA) where PC (parental contribution) = PCI (parent contribution from income) + FCA, and TFC (total family contribution) = PC + SCI (student contribution from income).

4. In the student column, student assets equal zero and student contribution (SC) = SCI, because all student assets have been moved to the parent column.

Select Not Trusts to have all of the student's assets except for the value of trust funds count as parent assets. The only student assets summed in the student column are trust funds. These calculation adjustments occur:

1. Family Total Net Worth (FTNW) FTNW = Parents' Total Net Worth (NW) + (Student's Total NW - Student's Value of Trusts).

2. Student Contribution From Assets (SCA) SCA = Student's Value of Trusts * Asset Conversion rate.

3. Family Discretionary Net Worth (FDNW) FDNW = FTNW - Asset Protection Allowances.

4. The Asset Conversion rate is then applied to the FDNW to produce the family contribution from assets (FCA) where: PC (parental contribution) = PCI (parent contribution from income) + FCA, SC (student contribution) = SCI (student contribution from income) + SCA, and TFC (total family contribution) = PC + SC.

Select Separate to use the default calculation. Parent assets are summed in the parent column and student assets are summed in the student column. If you leave this field blank, the system automatically enters Separate and uses the default calculation.

Enter the value. You can restrict the family size used in the calculation by establishing an age threshold for siblings or dependents. For example, the calculation would not include an allowance for a member in the household over the maximum age set by the institution.

Enter the value. You can restrict the number in college used in the calculation by establishing an age threshold for family members in college. For example, the calculation would not include an allowance for a member of the household in college over the maximum age set by the institution.

Enter a value to override the default MMA rate for a married student.

Enter a value to override the default MMA rate for a single independent student.

Enter a value to override the default MMA rate for a child of an independent student.

Select from these values to calculate federal tax allowance against income:

CSS Rules: According to CSS Rules, if a student's tax filing status is Completed Tax Return, reported tax is used to calculate federal tax allowance against income. If the student's tax filing status is Will File, the lower amount of reported tax or calculated tax is used to calculate the allowance. If reported tax is blank, negative, or invalid, the calculated tax amount is used to calculate the allowance.

Calc Tax: Select to use the calculated tax amount if a student's tax filing status is Will File; otherwise, CSS Rules apply.

Reptd Tax (reported tax): If a student's tax filing status is Will File, the reported tax is used to calculate the federal tax allowance against income.

This field refers to the available income assessment rate for independent students. Select from these values:

Yes: Uses 70 percent for income assessment. This is the default.

No: Select if you elect not to use the 70 percent income assessment; the Alt Income Assessment Rate field appears on the page.

Enter an income assessment rate for dependent students. The default is 50 percent.

Enter an alternate rate for assessing the student's income. This field appears on the page when you select No in the Use 70% Income Assmnt for Ind field.

Select from these values to calculate federal tax allowance against income:

CSS Rules: According to CSS Rules, if a parent's tax filing status is completed tax return, reported tax is used to calculate federal tax allowance against income. If the student's tax filing status is Will File, the lower amount of reported tax or calculated tax is used to calculate the allowance. If reported tax is blank, negative, or invalid, the calculated tax amount is used to calculate the allowance.

Calc Tax: Select to use the calculated tax amount if a parent's tax filing status is Will File; otherwise, CSS Rules apply.

Reptd Tax: If a parent's tax filing status is Will File, the reported tax is used to calculate the federal tax allowance against income.

Select to impute the value of EFM assets based on the interest and dividend income reported on the PROFILE form.

Select to use the student's anticipated year earnings instead of base year for EFM.

Select to use the IM adjusted gross income and untaxed income overrides for the EFM student contribution.

Select to impute the value of EFM assets based on the interest and dividend income reported on the PROFILE form.

Select to use the IM's adjusted gross income and untaxed income overrides for the EFM parent contribution.

Select to enable the system to perform calculations using assumptions made by the system. For example, if Parent 1 reports income of 50,000.00 USD, and Parent 2 reports income of 50,000.00 USD, and the adjusted gross income is left blank, the system assumes the total income to be 100,000.00 USD. The calculation then uses an assumed adjusted gross income of 100,000.00 USD.

Select to calculate an anticipated estimated annual income if it is lower than the reported base year income.

Select to use the FM state and local income tax computation table in the calculation. When this check box is selected in conjunction with the Ind Use Par St Tax Alwnc check box, Use FM Tx takes priority for independent students.

Select to use the parents' information in the calculation for an independent student.

Select to combine the noncustodial parent's contribution to the parent contribution.

Select to let the system determine whether to add this value to taxes, based on federal tax allowance against income and tax filing status, as shown in the following table. The column headings represent the value of the Fed Tax Allwnc Against Income field from the IM Tax/Assess Parameters page.

Clear to indicate No (default); select to indicate Yes for this Yes/No option. If the check box is not selected, the application performs the Alternate Minimum Student Contribution from Income calculation using the following calculations

1. Multiply the Student's Available Income by the Available Income Assessment Rate (Parent's Marginal Rate from Income Band). For example, 10, 000 USD x .22 = 2,200 USD.

2. Compare the result (2,200 USD) to the Student Standard Contribution from Income. For example, 2,150 (Non-First Year Dependent Students) and take the higher of the two amounts. In this case, 2,200.

3. To obtain the Student Contribution Cap multiply the Total Parent Contribution by .50. For example, 6,000 USD x .50 = 3,000 USD.

4. The Minimum Student Contribution from Income is the lesser of the value in Step 2 (2,200 USD) or the Student Contribution Cap (3,000). In this case it is 2,200 USD.

Select if the student is independent with dependents but you want to use the parent's state tax allowance table in the calculation. When this check box is selected in conjunction with the Use FM Tx check box, Use FM Tx takes priority for independent students.

Select to calculate an international student contribution if there is enough information available.

Select to allow the calculated IM EFC to be below the calculated FM.

Select to enforce the amount that the parents volunteered to contribute, if that amount is higher than the amount calculated by the system.

Select to use the FM state and local income tax computation table in the calculation.

Select to allow losses taken on a parent's income tax. This results in a lower EFC.

Select to allow losses taken on a parent's income tax, such as depreciation in a business. This results in a lower EFC.

Select to have the system determine whether to add this value to taxes based on federal tax allowance against income and tax filing status, as shown in the previous table. The column headings in the table represent the value of the Fed Tax Allwnc Against Income field from the IM Tax/Assess Parameters page.

Select to calculate without using the low income asset allowance.

Use this check box to determine whether the tuition and fee deductions reported by the parents of dependent students are excluded from parental income:

• Select to disallow tuition and fee deductions from untaxed income.

• Clear to allow tuition and fee deductions from untaxed income.

Select to add Flexible Spending Account for Health Care funds to total untaxed income. Default is selected.

Select to add Flexible Spending Account for Dependent Care funds to total untaxed income. Default is selected.

Select to add Health Saving Account funds to total untaxed income.

If not selected, Health Saving Account funds are excluded from total untaxed income.

Select to allow the calculated IM EFC to be less than the calculated FM.

Select from these values:

Yes: Use the defaults.

No: Make manual changes to the minimum student contribution amounts.

Select asset options. Values are:

No Asset Projection: INAS does not impute a value for assets, reported amounts are used.

Combined Projection: INAS combines Cash/Int (cash and interest) and Inv/Dvd (investment and dividends) imputed values in the calculation. The entire amount is reported as cash savings.

Individual Projection: INAS calculates Cash/Int and Inv/Dvd imputed values individually. Cash/Int and Inv/Dvd can have a different yield and tolerance.

You can compare income with reported cash, savings, checking, and investments to identify cases where the asset value appears to be under-reported. Specify both an expected rate of return (yield) and a tolerance level for both Cash/Int and Inv/Dvd. Based on the interest reported, you can impute a value of the parents' or student's cash savings, using the specified yield. This helps you to determine whether the reported savings are under-reported. You can also impute a value for the parents' or student's investments and dividends.

Enter the limit and tolerance values for Cash/Int.

You can set a limit for cash and interest. For example, you can enter a value of 10,000.00 USD. You can set up the system to assess the first 10,000.00 USD (Limit) at 3.8% (Yield% 1) and any portion greater than 10,000.00 USD at 5.6% (Yield% 2). Based on the reported interest from the tax return, if the value is less than 10,000.00 USD, the system uses the percentage that appears in Yield% 1 in calculation. The system uses the percentage in Yield% 2 in the calculation for the amount above 10,000.00 USD. If the tolerance is set to 500.00 USD, and the imputed value when compared to the reported value is within the specified tolerance, you can decide to use the reported value. INAS uses the reported income and the expected rate of return to project the asset value required to produce that income. If the projected value is greater than the reported asset value by more than the tolerance level, the projected value is substituted for the reported asset value.

Set up the appropriate limit and tolerance to compare the reported value to the imputed value, as described previously.

Select the home option for parents and independent students. Values are:

1: Reported. INAS uses the value of the home reported on the application, to calculate equity.

2: Projected. The system calculates the value of the home based on the purchase price of the home and the date on which it was purchased, using the Federal Housing Multiplier table.

3: Projected if Significant Difference. The system uses the value set for home tolerance to determine whether reported or projected home values are used to determine home equity.

4: Highest. INAS compares the calculated and reported home value. The system uses the higher value to determine equity.

5:Alt Home Value Calculation. INAS compares projected value to capped value and uses the lower value.

Enter a home tolerance value. INAS uses the reported value of the home, unless it exceeds the tolerance when the difference is compared to the calculated home value. If it exceeds the tolerance, the value is adjusted accordingly.

Enter a multiplier if you do not want the reported value or the computed value to exceed a certain multiple of the family's income. The system multiplies this value with total income to adjust the value of the home.

Enter a cap factor from 0.0 to 9.9. Home equity is then capped using the factor times the computed income.

Enter a value to use as an allowance against assets.

Enter a value to use as an allowance against assets.

Enter a value to use as an allowance against assets.

Enter a value to use as an allowance against assets. Leave this field and the Asset % Ind W/Dep field blank to invoke standard IM rules.

Enter a value to use as an allowance against assets. Leave this field and the Asset % Parent field blank to invoke standard IM rules.

Enter a percentage of the total budget that you want to use for a student attending an institution half-time.

Select a parental contribution limit. Values are:

% Tot Bdgt (percentage of total budget): Select to have the parental contribution limited to the percentage (calculated as follows: budget total for other children divided by budget total for all children) that their total budget compared to the total budget including the applicant.

Lowest: Compare the parental contribution limits set by % Tot Bdgt and Sum Bdgt, and set the limit to the higher value.

No: Indicate that no parental contribution limit is set.

Sum Bdgt (sum budget): Limit the parental contribution to the sum of the budgets for all other children in the family.

Enter the values that your institution set for each type of institution.