I’m applying as a graduate of the class of 2025 so does that mean it would be 2022? The loss was taken in 2022.
Those programs look amazing, I’ll look into them.
Depending on your family’s full financial situation, you may be eligible for financial aid at more selective schools. We don’t know about the value of this business or any other assets your family has. Try the NPC at some of the more selective schools and see what your EFC might be.
The business essentially has no value. My dad made the day trading a legal business as a way to properly declare taxes on it since it became his full time job. What is a NPC?
If you will start college fall 2025, then the FAFSA and Profile (if needed) that you file will be for the 2025-2026 academic year, and will use the tax info from 2023, not 2022.
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Net price calculator. Each school has one in their website. You can input financial info and it will calculate what you can expect to pay for your education. You should do this at each school you are considering. Please note that is not a guarantee of aid, but it should give you a good ballpark number if you are inputting correct financial data.
Net price calculator. But it likely will not give you accurate info. It is very inaccurate for those who own their own businesses.
What will your family income be for 2023, because for the 2025-2026 forms, the 2023 tax info will be what is used. So…how has this year been?
The losses in 2022 won’t matter at all to the financial aid offices in terms of your FAFSA and Profile (if needed) filings.
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If the business is worth $0, it may still be useful to run the NPCs, correct?
I don’t know the answer and genuinely asking.
Not really. Businesses are worth $0 for a variety of reasons. There are deductions that some business owners take that are added back in as income.
Plus…the business loss was in 2022, this poster says. If he is starting college in fall 2025, that is the 2025-2026 academic year. The FAFSA will use income info from the 2023 tax year, not 2022.
@kelsmom…is there any circumstance when the 2025-2026 academic year would even consider losses in 2022? Or anything else on that tax return?
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This year hasn’t been great either—we (my mom and I) found out that he had been doing this w/o telling us only in about November so there are certainly losses from this year plus everything that he’s claiming from last year which he says will also carry over.
What are your dad’s plans? Is he going to continue day trading? Having highly volatile income can make FA unpredictable across 4 years of college. If he all of a sudden makes $300k, your financial aid could drop to zero the next year. Is your dad really going to want to write a $90k check after just reestablishing a bankroll? I would go with a place that will offer you enough merit aid that you can survive on just the federal loan if needed.
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He’s since stopped day trading but he’s currently looking for a job—if he does get one in the industry he used to work in, the income is likely to be somewhere around $150,000 a year so yeah you’re right. If it matters at all I think we’re declaring bankruptcy due to debts.
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I’m sorry that you and your family are experiencing these difficulties. Make sure to look at the schools that give full rides to NMFs, like U Tulsa and U Alabama. Hugs to you.
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Thank you…I appreciate the support. It’s been a rough few months.
Wait so do you have to reapply to financial aid yearly? If so I think I’m screwed.
Yes
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At most schools you do have to apply for financial aid each year, and you always have to file FAFSA each year to access Pell grants, student loans, work study.
Please do seriously consider the full ride NMF schools, they are a great opportunity and it doesn’t matter what your family financial situation is.
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You apply for NEED based aid annually at most colleges.
BUT if you take the National Merit Scholarship awards at either University of Tulsa or University of Alabama, those are merit awards…no financial aid applications needed. And if you maintain the required GPA, they are actually guaranteed for 4 or even 5 years.
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Not sure about these two schools specifically, but some schools will require you to submit FA forms every year even for a merit award. They want to make sure that you are not Pell eligible.
I believe these two do not require submission of the financial aid forms.
@tsbna44 can probably explain about Alabama, and @PresCarsonTulsa can certainly explain about Tulsa.
The 2022 losses will be considered to the extent that they are carried over to future years’ tax returns. I assume that they will reduce adjusted gross income. For FAFSA purposes, the information must be communicated directly from the IRS to the FAFSA beginning in 2024-25, so the information on the correct tax return lines will automatically be considered. If you are trying to figure out your SAI using an online calculator or if you are trying to figure out aid using an NPC, it is very important that you input tax information exactly as required (that is, reporting the information from the correct line of the tax return).
It’s possible that for years in which your dad had reported losses, you could qualify for a Pell Grant. But if he makes more in a subsequent year, that could disappear. Plus, FAFSA-only schools rarely meet need. For top schools that meet need, they typically require the CSS Profile and will probably add back some tax deductions (thus reducing the reported losses). That may mean that what they consider your family’s ability to pay is more than what the FAFSA SAI indicates.
All of this means that you are very fortunate to have great stats. Please follow the advice of the very wise people suggesting schools where you could get significant merit. That is the best path forward for you, and you have excellent options.
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How so?