The Department of Education requires parents or legal guardians of students to submit their financial information on taxes. The purpose of presenting your financial information through tax transcripts is to figure out how much the student is expecting to receive from the family.
This is known as the expected family contribution. The amount of expected family contribution determines a large portion of the financial aid eligibility of the student. If the expected family contribution is more than the cost of attendance, which is set by the schools, the outcome would mean that the student isn’t eligible to receive grants.
While the cost of attendance is going to be the same for every student, the same can’t be said for the expected family contribution. The amount of the EFC varies by student, and the reasoning for that is not every family has the same household income or assets that they can rely on. The expected family contribution creates a fair environment for every student to weed out those that need financial aid and if so, how much.
Present tax information/transcript to Student Aid
There are two ways to present tax transcripts. You can either send it as paper after printing out a copy or send it directly to the Department of Education by utilizing the Internal Revenue Service’s Data Retrieval Tool, also known as the IRS DRT.
Sending tax transcript information through the IRS DRT only works if you’re preparing an online application. Parents and legal guardians that are preparing a paper FAFSA can’t utilize this on their applications. Whether you send a paper application or fill out the FAFSA form online, you can mail documents to present financial information to the Department of Education.
Why do I need to send financial information to the Department of Education?
The Department of Education needs the financial statements of parents and legal guardians of students to properly calculate how much they can put towards the student(s)’s education. After every step of the application is done, the Student Aid Report (SAR) will be issued to the student, and you’ll see the expected family contribution.
The Department of Education requires parents or legal guardians of students to submit their financial information on taxes. The purpose of presenting your financial information through tax transcripts is to figure out how much the student is expecting to receive from the family.
This is known as the expected family contribution. The amount of expected family contribution determines a large portion of the financial aid eligibility of the student. If the expected family contribution is more than the cost of attendance, which is set by the schools, the outcome would mean that the student isn’t eligible to receive grants.
While the cost of attendance is going to be the same for every student, the same can’t be said for the expected family contribution. The amount of the EFC varies by student, and the reasoning for that is not every family has the same household income or assets that they can rely on. The expected family contribution creates a fair environment for every student to weed out those that need financial aid and if so, how much.
Present tax information/transcript to Student Aid
There are two ways to present tax transcripts. You can either send it as paper after printing out a copy or send it directly to the Department of Education by utilizing the Internal Revenue Service’s Data Retrieval Tool, also known as the IRS DRT.
Sending tax transcript information through the IRS DRT only works if you’re preparing an online application. Parents and legal guardians that are preparing a paper FAFSA can’t utilize this on their applications. Whether you send a paper application or fill out the FAFSA form online, you can mail documents to present financial information to the Department of Education.
Why do I need to send financial information to the Department of Education?
The Department of Education needs the financial statements of parents and legal guardians of students to properly calculate how much they can put towards the student(s)’s education. After every step of the application is done, the Student Aid Report (SAR) will be issued to the student, and you’ll see the expected family contribution.
The Department of Education requires parents or legal guardians of students to submit their financial information on taxes. The purpose of presenting your financial information through tax transcripts is to figure out how much the student is expecting to receive from the family.
This is known as the expected family contribution. The amount of expected family contribution determines a large portion of the financial aid eligibility of the student. If the expected family contribution is more than the cost of attendance, which is set by the schools, the outcome would mean that the student isn’t eligible to receive grants.
While the cost of attendance is going to be the same for every student, the same can’t be said for the expected family contribution. The amount of the EFC varies by student, and the reasoning for that is not every family has the same household income or assets that they can rely on. The expected family contribution creates a fair environment for every student to weed out those that need financial aid and if so, how much.
Present tax information/transcript to Student Aid
There are two ways to present tax transcripts. You can either send it as paper after printing out a copy or send it directly to the Department of Education by utilizing the Internal Revenue Service’s Data Retrieval Tool, also known as the IRS DRT.
Sending tax transcript information through the IRS DRT only works if you’re preparing an online application. Parents and legal guardians that are preparing a paper FAFSA can’t utilize this on their applications. Whether you send a paper application or fill out the FAFSA form online, you can mail documents to present financial information to the Department of Education.
Why do I need to send financial information to the Department of Education?
The Department of Education needs the financial statements of parents and legal guardians of students to properly calculate how much they can put towards the student(s)’s education. After every step of the application is done, the Student Aid Report (SAR) will be issued to the student, and you’ll see the expected family contribution.