Hi,
Our family’s income hovers around 95-106K a year. However about a third of that is commission. Our actual salary if the economy goes to total hell and we have no commission is about 70k and more like 50K agi. How does that effect packages? Do I have a good shot at appealing based on the fact that the commissions are not guaranteed and we could actually end up defaulting on payments if business takes a downturn?
Financial aid will be based on the tax return of two years prior so you would know how much income you made when applying for aid.
For example this October 2016 you would apply for school year 2017/18 aid with 2015 tax return information.
It doesn’t matter how you earn your income…salary or commission. It is still income. The schools don’t weigh commission income in a different way than your actual salary…if that is what you are asking.
As noted…the 2017-2018 FAFSA and Profile will use tax return data from the 2015 taxes.
If your income fluctuates a lot because of commission, then you might need to work with averages of last few years or low estimates when considering how much you can afford to spend on college.
Or if you can…if you get a lot of commission one year…put some in a 529 for college costs for those leaner years.
As an FYI…your financial aid might not actually be different from one year to the next if your kiddo attends a college that does not guarantee to meet full need for all students. Most colleges do NOT guarantee to meet full need.
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Do I have a good shot at appealing based on the fact that the commissions are not guaranteed and we could actually end up defaulting on payments if business takes a downturn?
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No. It doesn’t matter.
Imagine if a school gave you more money based on “you might earn less that year.”? What if commissions end up high? are you going to give aid back?
If the business takes a downturn over a PERIOD OF TIME, THEN you could appeal…but most colleges don’t have add’l funds.
Which colleges are you applying to?