marinex

I'm a HS senior this school year, so I'm looking for payment options for Fall of 2013.

Here's my icky financial situation:
My parents' small business went under, for all intensive purposes, in 2008. They had a little income coming in for the first year of the recession, but received nothing the second year, living off of savings, loans, family and friends helping, etc. Those two years consisted of debt piling up, bills being paid late/utilities being turned off, and foreclosure threats. My dad was able to get a job out-of-state weeks before our house was to be foreclosed, so we were able to start payments again. My mom's health worsened and has been unable to work and we have been unable to move to the location of my dad's job. He's been working there for about 2 years with a good income, but it all goes towards bills, especially medical bills. We live month to month but there has been no repayment of debt yet and we had a car repossessed so their credit score sucks. We are still trying to sell our house but have to take it off the market in the winter when my mom has to have surgery.

Basically, how will selling our house affect FAFSA if it occurs this year? What are my best options for loans considering my parents will be denied PLUS? How do I appeal to FAFSA/specific schools' financial aid regarding my circumstances that exceed the numbers shown on the application? Should I bother applying to a public state school in hopes for in-state tuition when it is likely my parents' residency status will change?

4kidsdad

1) Are your parents short-selling the house? Best to use any profits to settle the bills.

2) You will have more Direct Loan if your parents were denied from PLUS.

3) You will file FAFSA beginning 1/1/2013. After you decided which college you'll be attending; ask PJ from the FAO of that school, stating that you parents have very large medical bills, etc.

4) The requirements for in-state tuition are different for all 50 states. Someone else could help you on this one.

MommaJ

I know this sounds horribly nitpicky in light of your woes, but the expression is "for all intents and purposes", not "for all intensive purposes"--it's a common mistake, but not one you want to make in your college essays. Best of luck to you.

marinex

I don't know if they have decided what to do with the profits yet once it sells if they gain any profit.

Yes, so I would get just under 10k from the Direct Loan I think. Considering the weird residency issue, I fear I'll have to pay a lot more than that for any school I end up going to. I currently am a resident of CA with my dad living in WA, so I don't know if I'll be eligible for in-state tuition in CA if the rest of my family moves up there once the house sells. It gets more complicated because my dad is looking for a different job in various states, so even applying to a WA school in hopes of in-state tuition is risky.

Thank you, MommaJ.

swimcatsmom

You may want to check with schools in CA about the residency situation. If you are currently living in CA with your Mom, you are currently a CA resident for tuition purposes. With low income you may qualify for the Cal grant as well as some federal funding. Some states may allow a student to retain instate status if their parent moves after the student has started college. Check with schools in CA if this is the case. It would probably be your most affordable option if it is.

marinex

We don't have what is considered a low income anymore. We just have a ton of bills and debt racked up that I hope I can appeal to FA regarding. I'll e-mail FA for some CA schools to ask about the residency issue. Thanks.

swimcatsmom

FA does not generally consider most debt. However, they do take medical expenses and related debt into account.

marinex

OK, thank you. Would I just write a letter regarding medical bills during the same time I fill out FAFSA?

swimcatsmom

You would have to contact the school you are applying to and ask how to request a special circumstances adjustment. They will tell you exactly what you need. You will need supporting documentation such as medical bills etc, so starting to organize that in advance would be a good idea.

4kidsdad

I could be wrong.

I don't think FAO will do "special circumstances adjustment" for the applicants who are not admitted yet.

swimcatsmom

I should have been clearer. You would request a special circumstances adjustment after you submit FAFSA to the school.

marinex

Thank you for all the advice. I will be active in my financial aid attempts with the different schools I'm applying to.