What is PPY? - The tax year that will be used to identify a family's Estimated Family Contribution (EFC) for college. The EFC is a dollar amount which the federal government determines that a family can afford to pay for a year of education.
Why is this important? The Federal EFC for the class of 2017 will be based on this tax year (2015) - In the past it would have been based on next year (the 2016 tax year) - This can make a significant difference in financial aid eligibility for families with fluctuating income levels.
Beginning with the high school class graduating in 2017, a family's federal EFC will be based upon the prior prior year (PPY) tax return - the year the student is in the spring of his/her sophomore year and fall of his/her junior year of high school.
For a more comprehensive description of PPY and the financial aid process, visit EFCplus.com
Sandy Aprahamian, EDNavigators LLC
CollegeAffordability (This is a great website! I have met the owner of this company and respect his knowledge and the fact that his work is fee-based - no commissions - no hidden agendas.)