How does Self employed affect FAFSA and CSS Profile?

calmom
Tue, 12 Aug 2014 23:47:47 +0000

If you are looking at CSS Profile schools, it is really unpredictable. All will consider the income of both parents, and most will ask to see your Schedule C or other business tax records. The can and will add back some business deductions to increase your income for purposes of financial aid,but each college has its own polices and practices. Deductions for depreciation and vehicle expenses seem to be particularly disfavored – it’s worthwhile when it comes to working with the college to submit a letter of explanation for any particularly high costs. In your case it would be important to document that the loan payments are directly related to the purchase of the business. I have heard (second-hand, anecdotal) of a college that simply refused to reduce the business gross by more than a particular percentage, which created a hardship for an applicant with a high overhead business.

I’m self employed, and my ex is self-employed – and I really think that you need to be prepared for widely divergent views of your family’s need.