What is a simplified needs test?
An alternate method of calculating the Expected Family Contribution for families with adjusted gross incomes of less than $50,000, who have filed, or are eligible to file, an IRS Form 1040A or 1040EZ or are not required to file an income tax return. All assets are excluded from consideration. A student may qualify for either an auto-zero EFC or Simplified Needs Test (SNT) EFC if, in addition to meeting the relevant income criteria, the student or the dependent student’s parent(s) received benefits from a means-tested Federal benefit program (e.g. SSI, food-stamp program, or free & reduced price school-lunch program). Only the parent’s tax return is considered for auto-zero EFC and Simplified Needs Test EFC determinations. Please note that the maximum Adjusted Gross Income (AGI) of the parents was raised to $20,000 (from $16,000) for an applicant to be eligible for auto-zero EFC.
