<p>My husband, my daughter’s step-father, got a large lump sum in 2003. It was a one-time retirement payment that was immediately spent on debts, leaving no lingering assets in the bank or elsewhere. We farm and the money was spent on farm debts. Since this is only a FAFSA, nothing on the farm counts as an asset anyways.</p>
<p>I reported my income accurately on the FAFSA. They requested verification (which they do every year). I sent in my tax forms and asked if the loss of that income (the lump sum) would qualify as a special circumstance, since I certainly won’t see that much money again this year.</p>
<p>They told me that the money was “available” for education and therefore a special circumstance would not apply. I asked since my husband was no longer working, wouldn’t that be one and she told me that since I got all that money last year, I could have spent it on education, so I’m outta luck.</p>
<p>After reading more about financial aid, I am starting to think that the lady I spoke with was incorrect. It seems she would like to treat that INCOME as an ASSET, when it’s not an asset because it no longer exists (and did not when I filed the FAFSA). It is, in fact, income which I will no longer receive, thus making it a special circumstance…right?</p>
<p>I think she flat out lied to me.</p>
<p>This makes me mad since my kid has already completed one semester and they tell me that they can’t go back and change that. I am filing for special circumstance for this semester, but I’d like to get some ideas of what might happen.</p>
<p>Thanks
Jena</p>