A financial aid dilemma, might be fun to read

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<p>Have you ever been on welfare? Do you even know anyone who has? I’ve used both welfare and unemployment benefits and it’s very difficult to work yourself out of those programs. The system should not be set up so people can’t afford to work, but that’s what happens. If I worked any part of a day, I lost benefits for that entire day. When I was on unemployment, I was lucky because I was able to find a permanent full-time job within a couple of months. (One of my coworkers who had also been laid off was out of work for nearly a year and went through the majority of her savings.) I was a college student, so I had no savings. </p>

<p>As soon as I started working, the company that laid me off filed a claim for all the unemployment I’d received because I’d been offered some work for a day and had told them I couldn’t take it. I’d told them the reason too. I’d been offered a full-time, permanent job that started the same day. I ended up having to take an (unpaid) day off from my new job (that I couldn’t really afford) to go fight this company for several hundred dollars that were rightfully mine and that I didn’t have on hand to give back anyway. If you imagine it’s tough to get a job when you’ve been unemployed, try it when your unemployment runs out and you’re on welfare. </p>

<p>OP, I think you’re getting great advice here. Have a financial safety lined up. Also, if your grandfather can help, make sure you have a plan to cover all 4 years. Good luck with your search.</p>

<p>If your income is $55,000 a year, or so, I’m not sure how you would be Pell eligible…unless there are multiple kids in college at the same time, or you have a ton of siblings.</p>

<p>Bills paid directly to the school are unearned income to the student. Gift money the parent of the student is not so considered, though truly, any school can look at any income flow any way it pleases when it comes to its own funds.</p>

<p>I don’t see how OP is PELL eligible either. Also what is the market value of the house, less any mortgage, HELOC, secured loan against it? </p>

<p>Run your numbers through a FAFSA estimator and see what the EFC comes out to be. Your income won’t enter unless it’s over about $6K a year</p>

<p>Another thing I want to suggest if it’s doable is spending more time with dad than mom this year My friend who has primary custody made sure her oldest spent more time with her ex than with her the year before the FAFSA was completed (the time period is the 12 months before the FAFSA is actually completed, not calendar year, do note). She made a 6 figure income that precluded much, if any aid, but her ex did not. As busy as the son was senior year and the summer before, it was not difficult to make sure he spent more nights with dad than mom, as the parents lived near enough that it was easily done. He was unemployed, had little in assets which made his income PELL eligible and for non PROFILE, and schools that did not use NCP income, he got more fin aid than he would have with his mother as the custodial parent. FAFSA does not care who is the custodial parent in the divorce decree or tax returns, just who the student lived with the most in that time period. I have another friend whose ex was down right wealthy, and her kids got PELL because she had little income and was the custodial parent. PROFILE schools are a whole other story, but some of them do not put the onus as much on the NCP financials as they do on the custodial parent.</p>

<p>Yes, schools calculate need differently and meet it differently too.</p>

<p>It is an interesting suggestion to live with my father. Unfortunately he lives like an hour away and I have to be home for all weekends and several days in the week to watch my younger brother (he’s 13) when my mom’s at work at night. I don’t know if it matters, but my brother being 13 means he will be entering college the year after I leave.</p>

<p>Overview of our finances: Market value of our house is 310k and we have 270k left on the mortgage, bought the house in 1998 or 1999 for 350k. Not really any significant assets, even in checking/savings, outside of house except my mom has like 60k in an retirement fund. 80k gross income goes to about 59k-60k AGI. My NCP makes nothing and has a house (but i don’t think the house is in his name, it’s under grandpa’s). Ill have to run the fafsa and see what it says.</p>

<p>It’s a little funny though since we always have something in the house breaking down. My mom tells me shes trying to save money and then Whoop! Sewer backup. A few weeks ago a sewer pump stopped working and we had to get the entirety of the basement carpeting replaced and its a pretty sizable deductible. I came home today and she told me our refrigerator broke! Dish washer broke a few months ago. Every time she tries to save some $$ it gets drained by some goofy random event…</p>

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PS: Also one concern. If my grandfather does decide to contribute a raw amount each year, will that be factored in at all in our fafsa? It seems a bit silly if it does, we find a way to pay for college and in return they decide to make us pay more, LOL.<<<</p>

<p>If your Grandpa gifts the money to your dad who then pays the tuition, then it wont hurt your aid.</p>

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<p>No…dont do that. That will hurt FA. The grandpa needs to gift the money to the dad who then pays.</p>

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It’s a little funny though since we always have something in the house breaking down. My mom tells me shes trying to save money and then Whoop! Sewer backup. A few weeks ago a sewer pump stopped working and we had to get the entirety of the basement carpeting replaced and its a pretty sizable deductible. I came home today and she told me our refrigerator broke! Dish washer broke a few months ago. Every time she tries to save some $$ it gets drained by some goofy random event…<<<<</p>

<p>The above is rather typical for homeowners. This is why families can’t budget to the penny as to whether they can afford a school or not. Most families experience a few unexpected expenses every year…a big dental bill, a major car repair, an appliance replacement, home repair, etc.</p>

<p>I suppose it could be why one couldn’t budget at all, so my mom tells me.</p>

<p>Well, people can budget and include an amount in the budget for these contingencies. The point is that a budget cant just include the regular expenses…mortgage, insurance, food, utilities, phone, car, gas, etc. It has to include setting money aside for these emergencies.</p>

<p>Well I’d say we’re covered there! lol</p>

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<p>I missed this? Does this mean you are a 14 year old entering 9th or 10th grad NOW? If so…the net price calculators for the upcoming school year will NOT necessarily be accurate for you when the time comes for college. In addition, your financial situation could change, as well as your interests.</p>

<p>It sure is fine to start thinking about college financing options now…but a lot can change in the next couple of years. </p>

<p>I think OP means that the sibling is 4 years younger so mom could have kids in college 8 years in a row.</p>

<p>Well…Madison, if that is what the OP means…it really won’t have any impact on college financial aid at all because the two kids won’t be in college at the same time.</p>

<p>Right!</p>

<p>Sorry for the confusion. My brother enters college the year after I graduate college. I dony know why Npc on these schools websites are giving me pell grants. We are not that low income and have no real special circumstances.</p>

<p>You must be inputting the income incorrectly.</p>

<p>I’ve went back and checked, and the information is all correct. If tested some alternate scenarios and it said if she had 80k AGI we got no pell, but with 60k AGI we did, 2.6k grant. (at least at Lehigh)</p>

<p>Did you enter the number in your household correctly? Did you enter the number of college students correctly?</p>

<p>I ran our numbers on the Fafsa4caster, we have an EFC of $5,497.</p>

<p>I double check, and yes, we have the correct numbers for number in household and college students.</p>

<p>If your FAFSA EFC is $5400, you would not qualify for a Pell Grant of $2400. Actually, I don’t think you would qualify at all.</p>