My son is transferring to UW this fall. Originally he was awarded a $4000 need based grant, but upon review of our tax returns from this year, our EFC went up $600. I did not report our involuntary 403 (b) contributions. Both my DH and I work for the state college system--our retirement contributions are mandatory, and unlike most people, NOT accessible or usable for ANY reason-i.e. we can't borrow from our funds for education expenses or home purchases.
This $600 increase has put us over this year's threshhold for need based grant eligibility and the entire grant has been canceled. I spoke with an FA rep at the school to clarify. According to her, ALL untaxed income must be reported, and voluntary/involuntary has nothing to do with the reporting requirement. I swear I read otherwise when I checked into this before.
Please tell me I am right. And, if so, can you point me to a link that I can provide to the FA office?