Does anyone know if my assets affect financial aid if I’ve been unemployed for almost 2 years? I have about $100,000 in investments (stocks) and about $25,000 in savings. Due to being unemployed for so long I was hoping I wouldn’t have to use my savings or investments to pay for college. But I was told that my assets might affect my financial aid amount. For the previous year I have no earned income except for $4,000 made from dividends. If anyone has any information it would be greatly appreciated.
A few links that may help you:
https://www.edvisors.com/fafsa/eligibility/simplified-needs-test/
http://www.finaid.org/educators/needs.phtml
I can’t vouch for the accuracy of the information provided.
BTW, at the risk of being nit-picky, dividend income is unearned income.
It sounds like your income for 2015 is $0. Are you the parent? If so, you would likelynqualifynformthe auto $0 EFC because your incime is THAT low,and you would be considered a displaced worker.
If you qualify for auto $0 EFC or simplified needs test, your assets are not included for FAFSA purposes. BUT if your kiddo applies to a Profile,school, there is NO simplified needs or auto $0…and your assets would be counted.
For,the 2017-2018 school year, both the FAFSA and Profile will use tax year info from 2015. So your incime from 2015 would be what is counted.
Also, you don’t mention a spouse…but that person’s income is considered as well on the FAFSA and Profile.
Search on “simplified needs test” and see if you qualify. One way is if your income is below the required level AND you filed (or were eligible to file) an 1040A or 1040EZ. Then your assets (for FAFSA schools only) will not count. You might also qualify for state aid. There are other ways to qualify.
So the answer is: maybe.
The other qualifiers for simplified needs are dislocated worker OR qualifying for a means tested benefit like SNAP or free/ reduced lunch
If you are the student and over 24 (independent) then I don’t think you can have assets not count.
@kelsmom ?
Independent students can qualify for both simplified needs and auto $0. Read above.
Independent students can ONLY qualify IF they have a dependent other than a spouse (usually a child).
OP, how old are you? Do you have any children?
@romanigypsyeyes I believe that is true for auto $0 EFC…that the family size has to exceed 2.
I do not believe that is a criteria for simplified needs. @kelsmom?
So in my head, I totally typed “qualify for 0 EFC if…” and apparently that did not quite make it to my fingers.
I only know about auto 0 for independent students. I’m not sure about the SNT.