Verification and increased EFC

<p>We sent in our verification forms to D's school. We just received the corrected SAR. It increased our EFC by $1060. The only change I can think of was that we reported a scholarship (1800 - that we don't have yet in our possession) that we did not know about when filing. There was not a spot for it on the verification form, we reported it on the FA form that we signed and sent back to the school to accept the original package they sent us.
The information we reported and that was then recorded on the corrected FAFSA was exactly the same as the first one we sent. The new EFC on the SAR has a star by it - but there is no explanation for the star. Now since I discovered this info on the weekend, of course I cannot contact the school to see if this effects her aid. We are still Pell eligible, but this may reduce that amount.
Any thoughts on whether or not it would have been that scholarship that changed the EFC even though that was not reportable on the verification form?
Maybe they added that to the assets? (on the verification form it only asks for investments and savings - I saw no place for "anticipated scholarships"). MY D had income from a stock sale of $3700 (to buy a French Horn), has $7000 in assets in a trust, no savings other than that, no earned income.
Any thoughts would be appreciated. We have not yet received an updated FA offer from the school, but they move very slowly... so it may be awhile.</p>

<p>Just received an updated FA offer in the mail. Our Pell Grant was reduced by $1000. Still can't contact the FA office because they are all involved in an Orientation Day. Any ideas?</p>

<p>where did you report the scholarship on the federal verification form?</p>

<p>You can compare the new and revised SAR's line entry by entry, and see where the change was made. Try an email to the financial aid administrator as opposed to calling.</p>

<p>You mentioned your D had income of $3700. Was this $3700 the net proceeds of the stock sale, or the gross proceeds? You should only declare the net, which is the difference between sale price and purchase price of the stock. For example, if purchased at $1700 and sold at $3700, then the net would be $2000.</p>

<p>Well...that $1800 scholarship your daughter received reduced your "need" by $1800.</p>

<p>Pell eligibility is not affected by a scholarship. There had to be another change. I agree with violadad. Go over your old & new SARs line by line & see what changed. The financial aid administrator may have made a change (if you reported something incorrectly when you filed your original FAFSA ... not on purpose, but it does happen). When you find a discrepency between the two forms, report back here. We'll try to help you figure out what might have happened.</p>

<p>Old and new SAR's are exactly the same. The scholarship was not reported on the verification form. I did not see a spot. I only reported that to the school. The $3700 was the net, this stock sale was from the trust fund (set up by gma for educational puposes). Also reported on the FAFSA the taxes paid (154).
I have spoken to the man in FA a few times in the past, as we had to "negotiate " for a bit more money in merit aid. He is very easy to talk to, but very hard to get a hold of. I would be afraid that an e-mail would go unanswered! Reducing our Pell by $1000 is not good. As you can see by the amount in the trust (plus some in a 529 owned by gma), with stocks the way they are, it will not go far!</p>

<p>I am really confused. The thing that confuses me is the reduced Pell. The reported scholarship absolutely does not reduce the Pell amount. Pell is awarded using a federal formula that is independent of other aid but does vary according to cost of attendance at the school & status (full time/part time). You can figure it out for yourself by going to the following website:</p>

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<p>Use the first to determine your EFC by hand. Then use the second to find your Pell grant. If you come up with a different number on either than you see on your SAR, you will need to find out what happened.</p>

<p>It's always easiest to understand if you can see it in black & white yourself. It isn't that hard to plug in the numbers from your EFC & crank out the answers. Good luck.</p>

<p>kelsmom - I double checked the 2 SAR's and found one discrepancy. They have us down for $0 taxes paid in 2007. The first one had an amount. I am assuming this could make a difference? My H and I are both self-employed, but believe me, I write out that quarterly tax payment! Still trying to contact FA - they still have yesterday's away message up!</p>

<p>Yes, that definitely can make the difference! Good that you found the mistake.</p>

<p>Would the school have corrected that (made the mistake)? And how do I correct it with FAFSA?</p>

<p>I think the school may have made some changes based on the info you gave them. However, if you are paying taxes, there should be an amount in that section. I am guessing the school made a mistake. Did you send the copies of your returns?</p>

<p>OK, I think I found the answer here, and I think the school is right. Apparently I was supposed to put zero on that line because you can not count "self-employment" taxes. FAFSA apparently calculates them based on your AGI (adjusted gross income). So I guess it was my mistake that they caught from the copies of my tax returns. Thanks for your help kelsmom, it is good to bounce ideas off of people. I will still talk to FA and make sure that that is what happened.</p>

<p>Bummer! That makes sense ... if the system does an automatic calculation AND you put in an amount ... it would be like double-dipping. That would make the difference on your Pell.</p>

<p>I hope you can get a little help from the school. Good luck.</p>