Hi,
During college, my dad will certainly retire from his job, and it may even happen before my senior year of HS ends. My question is, for when that happens, do the CSS or FAFSA take assets into account or merely income?
Your dad will have retirement income…right? How much? If your total parent income is above
$50,000, then your assets will most definitely be included on the fafsa and Profile.
If it’s under that amount…AND your parents can file a 1040A or 1040ez tax form OR your qualify for a means tested benefit like free or reduced lunch…you might. It have to report yourmassets on the FAFSA… up you WILL have to report them on the Profile.
Also, keep in mind that these financial aid forms use prior prior tax year income. If your dad retires during your junior year in college…his retirement income year will never appear on a financial aid form.
FAFSA and CSS take assets and income into consideration. If the income is low enough (under $50k for simplified assets (with other conditions) and under about $25k for auto zero), then assets may not be considered on FAFSA. I’m pretty sure CSS always considers assets and different assets than FAFSA (family home, ex.)
@thumper1 say he were to retire in two months (quite possible actually). would my dad’s retirement income year appear for my soph. year of college?
His 2017 income will be used for the 2019-20 school year. Even if he retires in April, he’ll still have income for 2017 from SS or a pension, IRA, 401k, etc.
When are you beginning college?
For the 2017-2018 school year, 2015 income is used.
For 2018-2019 the 2016 income will be used.
For the 2019-2020 school year the 2017 income will be used.
For 2020-2021 the 2018 income will be used.
Your dad’s retirement income (pension, social security, etc) will count as income as well.
You don’t mention your mother. If she is working HER income counts as well. If your parent income is over $49,999, it won’t enable you to use the simplified needs test…at all. And even if it is, you also would need to qualify for SNAP/free reduced lunch or some other means tested benefit…or your parents would need to be able to file a 1040EZ or 1040A for the tax year.
And there is NO simplified needs test for the Profile…at all. Profile schools will ask for your assets regardless of your parent income.