<p>I'm at a dead end with the FA Office of D's school and don't know what to do about it. D is going to be a freshman nursing student. She has received some scholarship funding, but there is about a $15,000 shortfall per year. </p>
<p>My spouse went into a Nursing Home at the end of 2009. Spouse will stay there for a few years until death. No life insurance. All of the spouse's income will be paid to the NH, except for $45 for personal spending. Let's say we had ($150K) in assets including college savings in 529 accounts and cars when the spouse went into the Nursing Home. Of that, $75K has to be used for the Nursing Home under Medicaid rules and $75K (up to a ceiling) can remain mine. In my $75K, I would keep the value of the junk cars that the kids drive, the kids' 529 accounts and some change in a jar under the bed. </p>
<p>Until the Medicaid application is approved, anything I spend reduces the ($150K) snapshot at the time of admission, dropping my 1/2 share below $75K. There is also a question over whether tuition payments for a child over 18 are a gift of assets. My Medicaid lawyer thinks it shouldn't be viewed as a gift, but it isn't a sure thing. I can't ask for his help with the college financial aid question since he blew through a $5000 retainer already.</p>
<p>I wrote to D's financial aid office to explain that the FAFSA for 2010 tuition is incorrect, explaining the circumstances in detail. I explained that the ($150K) in assets that show up in the FAFSA and tax returns for 2009 had to be liquidated and paid to the Nursing Home in 2010 or as part of the spend-down eligibility for Medicaid. I explained that D's parent's income isn't available either, since it has to be paid to the Nursing Home. In other words, our 2009 tax return and FAFSA index number is not representative at all of our financial situation or ability to pay. </p>
<p>What did I get in return? A medical expense form for 2009 and a request for 2009 taxes, without even a cover letter. I tried speaking to the Director of FA, who said that if we have any college savings at all I'm better off than many applicants. Wow. He said that his hands are tied until next year when the Nursing Home bills may show up in our tax return, but to feel free to send him any additional information.</p>
<p>Any suggestions? I was hoping to get D qualified for lower-interest loans even if she can't get more scholarships. I'm concerned about borrowing money at this point in life. Or do we just suck it up, borrow the money for this year at whatever rate we can get, and count on next year's return to more accurately reflect this disaster?</p>
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<p>First, I’m sorry for your family situation and I do hope the school will work with you.</p>
<p>Complete the 2009 medical form. Send the 2009 taxes…BUT send a detailed letter about how your income/asset picture has dramatically changed. I would include anything that clearly states what your out of pocket payments will be for this upcoming year as well as anything you have already paid. Include your own pay information and any information regarding depletion of money in bank accounts. </p>
<p>AND most importantly include a cover letter explaining WHY you are asking for a special circumstances consideration. These are granted at the discretion of the school. Usually, I believe, they are for medical bills, etc…that have ALREADY been paid but are not reflected on the financial aid application forms. I do wonder if your spouse’s permanent loss of income will also be considered.</p>
<p>And lastly…ask to speak to someone higher up in the admissions office than the person answering the phone. Your issue is a bit more complex than a typical request for more funds.</p>
<p>I’m so sorry to hear of this…you certainly don’t need any more stress in your life right now! Did you have significant medical expenses in 2009 as well? It seems their policy is to base aid only the previous year, so you may have to play the game their way for a year. I would return the forms, along with a “snapshot” of your medical expenses for the current YTD and keep pressing for a special circumstances adjustment. For pete’s sake, if all you’re looking for is eligibility for subsidized loans, it’s not going to cost them anything to show a little understanding! Hopefully kelsmom or swimcatsmom can offer some suggestions to you.</p>
<p>Is this a FAFSA only school? Do you know what your FA would look like without the $75K and second income (or will his current source of income be in included in AGI)? I’m wondering if she is likely to get much better aid next year. If the $15K gap is before Stafford loans, could you split the difference by having her borrow $5500, take an additional $5K from her college fund, and pay the remainder from current income or a loan? I’ve seen some schools offer 10 month interest free plans, which might be an option.</p>
<p>I don’t know if that’s helpful or not, as you have much more experience than I in the nuances of college financing. You were a great help to me last year and I’ll be forever grateful. But I’m sending many prayers and hugs your way…hang in there!</p>
<p>Thank you! We didn’t have signficant medical expenses in 2009, since we took care of spouse ourselves until it was no longer possible. </p>
<p>I already sent the detailed letter and contacted the Director of Financial Aid…not sure who else to contact, but I’ll try to resend the information and give them a snapshot of 2010 (maybe with one of the $8000 per month nursing home bills…). </p>
<p>The gap is after her scholarship, Stafford loans and 1/4 of her college fund (we were trying to spread it out instead of using it all up now, a strategy that may end up penalizing her).</p>
<p>Disappointingly, this is a religious university and I would have hoped for more than the blow-off by the Director of Financial Aid with the statement that “you’re better off than most students who have no college savings at all.” On the other hand, maybe he’s heard every story under the sun and I was just one more person with a sob story. </p>
<p>I’ll try to figure out what FAFSA would be without the second income and without the assets too. That might help too. I hadn’t used the magic words “special circumstances adjustment,” and will put them into my letter just in case it helps. Thanks for the suggestions and kind words.</p>
<p>I am so, so, sorry – what an incredible set of stresses for you and your family. I hope that the school responds much more compassionately when you send the new request. </p>
<p>One thing I would investigate is how your daughter’s school is likely to handle the financial aid next year if you end up using more of her college fund this year, and what your EFC is likely to be next year. If it is a school that does a good job meeting financial need without PLUS loans, that may be workable, but if the school gaps or uses PLUS loans heavily then this may not be a good fit under the circumstances.</p>
<p>Is there a ROTC nursing program available? Would your daughter be interested in that?</p>