<p>Five years ago I volunteered for an international assignment with my company. It was in a very “unsettled” part of the world (where you find that UN “peacekeepers” mostly occupy their armed compounds and leave the country to go along - or not - on its own), but it offered me a chance to make more money than I had been making. It was supposed to be an 18-month assignment and I was fairly sure that it was going to be my terminal assignment (little joke there) with my company. They have a dismal record at assimilating returning internationals. But five years ago, the employment picture was quite different. </p>
<p>Instead of 18 months, the assignment lasted almost five years as I “commuted” from Colorado. I finished the assignment early in 2004 and in June was booted out of the company, which was already going through massive layoffs. I have now been unemployed for six+ months. It turns out that it’s very difficult for a 50-something year old employee to get a job equivalent to what he/she left (although, I have to admit that there seems to be many, many jobs out there - mostly for younger - read “cheaper” - employees).</p>
<p>There are several things in the works, but no matter what, my income next year will probably be less than half my 2004 income.</p>
<p>But - my questions:</p>
<p>First: I notice that EFC is based on the previous year’s income. Using that, I look great. Does it matter that I’ve been unemployed for almost 7 months? Does it make a difference? If I do get a job at much less pay, is there a way to communicate that to the colleges? Again, does it make a difference?</p>
<p>Second: Should this affect college choices? I should be able to afford the two places my son has been accepted into so far, based on savings (which are being depleted rapidly until SOME income starts to come in) and based on the merit scholarships he’ll receive. But he also wants to apply to USC - a very expensive school. Even though he <em>might</em> qualify for a merit-based half-tuition scholarship, that would still leave the total beyond reach. Is USC then a non-option? Should I still encourage him to finish the application (due 12/10)?</p>
<p>Anyone else been through this, where the income level has drastically dropped, but you still look good on paper?</p>
<p>Hi Digi,</p>
<p>Your income is what it is. You were unemployed half of 2004 (you will do the FAFSA 1/1/05 based on your 2004 income, uunemployment benefits, severance packages which can be counted as income etc).</p>
<p>No one can tell you what kind of job to get because many people take jobs making a lot less than their “worth” because it is what they need in the here and now to get the bills paid. The colleges will deal with your financial picture based on where you are at the time.</p>
<p>IF your son were to go to USC according to them</p>
<p>USC administers a robust financial aid program. Undergraduate financial aid includes need-based grants, merit scholarships, low-interest loans, and work-study. USC has a long tradition of meeting 100% of the USC-determined financial need for those undergraduate students who satisfy all eligibility requirements and deadlines.</p>
<p>With your reduced income, you may be eligible for need based financial aid. If the majority of that need based financial aid is in scholarhsips and grants- then it’s all good. However be reminded that your financial aid picture will change depending upon your next job. If you really become in the money then you may not get any need based aid or naturally you will pay more because your EFC wil be more. You really need to do your home work to find out how USC meets 100% of the financial need. Are they loan heavy or scholarship heavy?</p>
<p>Should it affect his choices</p>
<p>That is something that you will need to sit down and talk about as a family what you can and cannot realistically do from a financial aid standpoint. The great thing about merit money is if your son meets the conditions of his merit scholarship even when things get better, he will probably keep the money.</p>
<p>Consider looking at a variety of schools where your son may be at the top of the applicant pool that with merit aid the cost will be affordable to you and your family. Also consider honor colleges at other state univerisities where he may be eligible for a few free rides and other perks. Your son will get into many wonderful places and everything will work out.</p>
<p>I can’t speak to USC specifically but I will relate our families experience.
Our daughter chose a private school where she did qualify for need based aid ( they didnt’ offer merit as does USC) although it still made our expenses more than the other schools she was considering. Then 9/11 hit, and income went way way down a couple weeks into her freshman year. Should we have her change schools? What to do?
Her school did adjust aid a bit to incorporate a little more grant aid, but look at the bright side, you have a good idea of changing income before your son applies rather than after already registered :)</p>
<p>Sybbie is right on. You can send a letter to the financial aid offices letting them know your current unemployed situation, but your EFC is calculated from your income for 2004. This has cause all sorts of unfairness in term of folks getting one time lump sum payouts intended to provide a nestegg for a period of uemployment or for pension purposes. Federal methodology also does not look at the history of the income or expenses incurred. You can have a nice income one year after years of scraping by, accumulated debts, and you will be hit up as though you had made that kind of money for years. The colleges can adjust for that with their own funds.</p>
<p>I have had no personal experience with USC’s financial aid dept but I had seen some posts about their financial aid that accused them of bait and switching, meaning a generous first year package followed by loan filled subsequent ones. There are schools that have a reputation of doing this, and you may want to check on this. There were some posts on the old CC on this subject. I would also look at some other info sources, and talk to USC directly about this matter.</p>
<p>Dig, I remember a parent posting on the old board about being disappointed with the second year financial aid package at USC. They felt they had had a bit of bait and switch - good package first year, so-so package the second year. You might want to look on the old board under USC in the individual schools section to see if you can find out more. Just another tidbit of information - I wouldn’t base a decision just on that but worth reading.</p>
<p>The FAFSA that you will file will be for the calendar year 2004, so it will show your 7 months of unemployment.</p>
<p>By all means supplement the financial aid file with a letter setting forth information that will show that even your reduced income for 2004 may not give a true financial picture of your situation going forward.</p>
<p>As for applying to USC, I would say to go ahead, with the understanding of your son that financial considerations are going to weigh heavily when it comes time to pick a college. Things may look better in May, you may have a job, and USC may become possible again. S will be so disappointed if he hadn’t applied because things looked so dark in December.</p>
<p>You should definately send a letter to the school, at least that will see if they can do anything for you. For example, my mom lost her job, and I had already been giving my financial aid “package” and she sent them a letter - and they replied saying thank you and that things would be changed accordingly for the following semester, and then my aid was much different.</p>