FAFSA question

Marzies · 10-04-2009, 12:31 PM

Hi all, my first time posting (finally!) so go easy on me! Question about the FAFSA: I am being laid off on 11/30/09. If I use my 2009 income (combined w/my husband's) it will look like at lot more than we will actually have next year with the layoff. Is there a addendum to the FAFSA that you can use to address this, or how is it done? Thanks very much for your help!

swimcatsmom · 10-04-2009, 12:36 PM

You have to fill out FAFSA with the actual 2009 income then ask the school for a special circumstances adjustment to reflect loss of income. It is at there discretion whether they award one or not. Some may do so but some may not be willing to make an immediate adjustment.

thumper1 · 10-04-2009, 01:08 PM

I will hope for you that your income is NOT that much less. Hopefully you will find another job quickly.

Most schools have a period of time, say six months of no job...before they will consider this as a special circumstance. The theory is that the unemployed person just might get a job. There is no adjusting the financial aid based on just being laid off (unless you are going out on something like permanent disability) in most cases.

Remember that financial aid assumes that college costs will be paid out of past income too (in the form of savings)...not just current income or future income (loans). And as noted above...it is at the discretion of each school to determine if they will even consider a special circumstances request.

There is NO addendum to the FAFSA to reflect a layoff. Call the college to find out what they require to file a special circumstances request. They will tell you.

Good luck to you..I hope you land a "replacement" job quickly after your layoff.

Just FYI...this happened to us the year my son was a freshman at a very expensive school where we were basically full pays. DH lost his job at the end of November. We gathered all the necessary information (pink slip, statement of severance pay...which IS considered, letter of dismissal, etc) to submit to the college. DH found a new job in January and we never needed to go forward with our request for special circumstances. BUT we were prepared just in case.

Marzies · 10-04-2009, 02:07 PM

Thank you all for you helpful advice. And you're right, Thumper. I may well only be unemployed for a month or two, as I'm in a field with relatively few experienced workers. So, it may all be moot, by that time. I didn't realize that you needed to wait a full 6 mos. before it becomes a "special circumstance".

thumper1 · 10-04-2009, 03:35 PM

Marzies...that six month waiting period varies by school...but my understanding is that MOST do have a "waiting period" after layoffs. you would have to contact YOUR child's school to find out their policy.

But really, when you think about it, it makes sense. Schools might adjust your aid unnecessarily if you are able to get a new job quickly.

mom2collegekids · 10-04-2009, 03:39 PM

I can see why they demand 6 months of unemployment for it to be a "special circumstance". People are being laid off all the time, but many do find jobs within 3 months time. And, many get a severance of some sort that helps bridge the gap.

kelsmom · 10-04-2009, 06:03 PM

Believe me, the waiting period varies by school - you definitely need to call & ask. Some schools will adjust right away, some after 6 weeks, some after 6 months, some not at all that year - and everything in between. In addition, some will include all income earned to date for the calendar year, while others will start with a clean slate in determining expected income. There are no rules governing loss of income - in fact, every case has to be determined on its own merits - although schools do come up with their own guidelines to assist financial aid officers in making adjustments.

thumper1 · 10-04-2009, 06:17 PM

Kelsmom...just a question...and if these folks who lost jobs and receive additional financial aid then GET jobs...does your school ask that they report THAT so that the financial aid can be readjusted back down?

Marzies · 10-04-2009, 07:14 PM

Thanks, guys. Sounds like the consensus is generally six mos. (which does make sense) but that I should check w/the specific schools he's applying to (or, more importantly perhaps, gets accepted to!) Thanks again for all of your help - much appreciated.

Pianomom12 · 10-04-2009, 08:44 PM

I'm a new member to this wonderful community so hope for some perspectives from other parents. When completing the FAFSA, it is *required* that the student complete the financial information related to the parents? We have concerns about this confidential information being communicated to our child (not a trust issue but rather a "no need to know" issue) as it's, well, confidential. We realize that the financial aid *award* letter is directed to the student, however is it not possible for us to complete this information without our child knowing our financial situation? Any guidance on this would be appreciated. Many thanks.

swimcatsmom · 10-04-2009, 09:05 PM

You can input your info yourself. But it is your child's FAFSA and they can at any time go and look at their SAR (student aid report) and it will list all your info. There is really no way around that.

If they are anything like my kids they may never be interested in anything but the bottom line (as in the aid they get). I don't think either of my kids have ever gone in and looked at their SARs. Their PINs and ours are kept in folders with all their college stuff (application/acceptance/scholarships and rules, FA awards, any honors they might receive). The folder is here in my house as that is where most of that type of mail is sent. It is theirs if/when they want it. They know it exists but neither has ever shown the least bit of interest other than looking up their PINs once a year when needed for FAFSA.

thumper1 · 10-04-2009, 09:07 PM

Pianomom12...families deal with this in different ways. Some choose to share the information and others do not. I will say...we shared the information. The reason was that the FAFSA is actually being filed by the STUDENT. It is their FAFSA, not the parent's. Parent information is required. Since our kids had to sign with a PIN indicating that the information was not false and was accurate, we felt it important that they knew what they were signing. BUT I do know that not all families share that way of doing things.

In addition, our kids knew we didn't have a bottomless pit of money and seeing our income/assets and then we also shared with them the bills, including their college costs...it gave them a serious dose of reality. AND it made them mighty thankful that we were helping them financially as much as we could.

The other thing you need to know is that at any time, your child can use THEIR PIN number and review every item on that FAFSA. So it's only totally confidential to the student if you don't even GIVE your kid his/her PIN number...and I really do think that is not the right thing to do.

By the way...you really have to give them their PIN as it's the same PIN they use to fill out the master promissory note for their college loans..no way around that.

Pianomom12 · 10-05-2009, 11:15 PM

Thanks for your input on this issue. We understand that this is the child's FAFSA and that they have their PIN (which is theirs) yet this issue still remains a delicate one. Conversations occur and I've heard some of my child's friends talking about all kinds of things that I feel certain their parents would not want to have communicated. Whether intentional or otherwise, the information -- once "out there" -- is no longer confidential and I feel that parental income, assets, debts., etc. is confidential. I'm really not sure how to proceed on this. Any additional insights or thoughts -- please do share. Thanks again.

kelsmom · 10-05-2009, 11:21 PM

Thumper1, we do not ask them to let us know if they get a job. We are located in an area where jobs are lost & people frankly are not getting new ones anytime soon. We are pretty tough in our adjustments, though. Some schools will make a loss of income automatic 0 EFC. We do not. We include all income to date, and we include assets & severance pay in most cases. Our reasoning is that we have a LOT of students whose families don't make that much money yet do not get Pell grants. Our feeling is that it's just not fair to families who have struggled for years & miss out on Pell and all that goes with it ... for us to give a professional family an automatic full Pell & all the trimmings after 6 weeks of unemployment.

kelsmom · 10-05-2009, 11:26 PM

As for sharing the info with your child ... some in my office advocate letting the student have the parent tax/asset info to use in filling out the FAFSA. I have a college student, though, and I fill in my info. My D may or may not look at the parental data ... I have no clue ... but she is well aware of the fact that this is confidential information. She would not share.

Funny story ... a couple years ago I was subbing in high school when the kids were doing the preliminary bubbling of paperwork for the ACT (mandatory for high school juniors in our state & given during the school day). The kids got to the part where it asked family income. Almost every kid in the class was totally clueless. They wanted me to tell them what I thought their parents made. I live in a very economically mixed area & I wouldn't dare take a guess!