Changes to financial aid formula benefit small business owners

The formula for financial aid hasn’t changed much over the last few years, but one change to the Expected Family Contribution (EFC) calculation may help small business owners.

Effective in 2007, parents who are small business owners are no longer required to report the value of the business on the FAFSA report, if the business is family owned and has less than 100 employees.

This reduces the parents’ contribution toward the EFC, which may allow small business owners who previously were unable to qualify for any need-based aid due to the value of their business, qualify for financial aid.

For more information, read Boost chances of getting college financial aid.

Tags: financial aid, fafsa, saving for college