We just completed the FAFSA application for financial aid in the upcoming Spring 2018. Last year, I had a high paying job but was laid off with a high poayout. Mu income tax declaration for 2016 shows very high earnings, and the result is that we do not qualify for financial aid. The reality, however, is very far from the picture painted in the application. As I had just turned 50 and was concerned about getting another job soon, we decided to invest most of our savings in a business; unfortunately, the timing was off and we ended up everything, had to sell our home to pay some debts, and are now living off the remaining cash (not much) in the account and some help from family. I am now trying to get licence in insurance and financial services to start a new career (self-employed), but this will take some time.
The FAFSA application does little to reflect the actual situation, and most of the outcome is based on previous/most recent income tax filing. How can I overcome this challenge? The reality is that both my wife and I are unemployed, looking for jobs, paying rent, little cash in the bank, and can’t really afford tuition for our son.
You will need to do a financial aid appeal with the individual colleges.
Make sure the schools on your list meet full need or close to it. If your son has outstanding grades and test scores, look into schools that offer large scholarships, too.
Call or email each financial aid office and see how they handle financial aid appeals. Some will want the information before the financial aid deadline, and some will say, "wait until you get your financial aid package, then write the appeal."
Sometimes, it just doesn't work out. Investigate your rock bottom cheapest options, such as community college.
If your son is not working part time, he should start job hunting.
On the FAFSA, you can’t do anything as there is no place to explain. Once accepted to a school, you can file a form stating your special circumstances. Sometimes you have to request this form but often it is found on the FA webpage. It will ask for all the circumstances - job loss, any payments you received, savings, expenses, if you received any unemployment, etc. They will often want a copy of the next (2017) tax filing.
It is not a sure thing but you might be eligible for a professional judgement on Pell grants and university grants.
If you have CSS schools, it is possible to explain some things on the form. You might still have to explain more.
Did your kiddo apply for need based aid for fall 2017 (the term that will be ending soon)?
And will that same kiddo be continuing in college during the term that begins in January 2018?
If so…as noted by @mommdc …that would be the 2017-2018 academic year…and the fafsa you would file would be 2017-2018.
How are you paying for college THIS term?
If you have com0lwted a 2017-2018 FAFSA, and are looking for aid for THIS current academic year…and need a some professional judgment, you need to contact the financial aid office at your kiddo’s college to find out what to do.
NOW…if all of this is for the academic year starting in fall 2018, that is another story.
Check the financial aid websites of each college and university for their Special Circumstances link. You may well be able to find the forms needed just by googling for Special Circumstance and the name of the college/university. This is something that will need to be discussed with the folks a bit higher up in the FIn Aid office, not with whoever answers the phine first.