<p>Parent income for 2008 drastically inflated, due to forced early retirement and severance
pay received. Due to drastically reduced 2009 income (now 60%), student will now have to bear all burden of 2009-2010 school year starting next fall. Does student’s FAFSA, about to be sent, need to have parental income reported, if parental budgetary limits, force student income to become all there is consider? If parent must always report prior year’s income, then FAFSA reporting is always a year behind the real ability of family and student to pay, for the next upcoming college year. That doesn’t seem very up to date!</p>
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<p>That’s the way FA works, both the FAFSA and Profile use the prior year’s financial information. You can contact schools about special circumstances and and they may take that into consideration when making their FA package.</p>
<p>The FAFSA calculation assumes there are also college savings and the ability to borrow in addition to current income. unless your child is 24, married or has a child, parent’s income will be counted whether they intend to help or not.</p>
<p>Yes you have to report the parent income from 2008 regardless of what it will be in 2009.</p>
<p>You can call the school and present your situation as a special circumstance (reduced income). It is the school’s discretion to determine if this IS a special circumstance for you and whether to adjust your financial aid. However, be advised that the severance package IS viewed as income. Be prepared to provide documentation of the reduced income. </p>
<p>Also as mentioned above…financial aid has an assumption that your family contribution will be paid out of past earnings (savings), current earnings (income) and future earnings (loans). In we don’t know what that 60% income IS…and you don’t need to post that here…but if it’s quite high anyway…well…you may not net additional financial aid anyway.</p>