Automatic Zero EFC

<p>Hi, this is my first post here and I need some advice. My husband and I are independent college students. He works at Walmart and I'm unemployed. Our car was crushed by a tree in July. As a cancer survivor, I have to see specialists we don't have in our town, which means three hour round trips. We had to have a reliable vehicle, so we bought a 2010 Ford Escape with low miles and my father co-signed on the loan. My husband's meager Walmart income barely pays the bills so we were relying on our student loan refunds to make the payments. Last month, we found out my husband reached the maximum on his student loans. I needed more money to make up for the loss of his student loan refunds so I could afford the vehicle payments. Unfortunately, the Vocational Rehab program I'm on requires me to take a minimum of 15 hours per semester, which makes it impossible for me to work. I remembered reading that receiving public assistance with an income of $22,000 or less qualified students for a zero EFC. So we got food stamps, thinking I'd get the automatic zero EFC. Earlier this evening, I read that there are different qualifications for a zero EFC for an independent student than for a dependent student. According to what I read, dependent students get a zero EFC if they have public assistance like food stamps. Independent students have to have both public assistance and children in the house, which we don't have. I had no idea children were an added requirement for independent students. We had an EFC last year because of him working at Walmart, but I thought the food stamps would automatically change that. It makes no sense that someone can qualify for food stamps but not a zero EFC because of their independent status. I can't lose the reliable transportation that takes me to my cancer doctor. I would appreciate any and all advice on how I can get a zero EFC.</p>

<p>According to FAFSA</p>

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<p>There is no way that you can “become” eligible for an automatic 0 EFC given the situation that you mentioned. Are you currently receiving federal aid in your FA package? IF you were to get loans, how do you plan on repaying them (as it sounds like you are already way over extended).</p>

<p>sybbie is correct. A independent student must have a dependent other than a spouse to be eligible for the automatic 0 EFC.</p>

<p>Yes, we get Stafford loans. As far as repaying them, we plan to go with income based repayment plus if I work in the public sector (in a job I can do with my disability), I can have the remaining balance of my loans forgiven in 10 years. I know we are way over extended, but I have to have reliable transportation because there are no gynecologic oncologists in town or in a nearby town. Seeing my gyn/onc is a three hour round trip. Being a cancer patient (and all the medical bills that come with it) plus having food stamps should qualify people. Kids count but cancer doesn’t even though both are expensive. The site I got the information from in the beginning must have been referring to dependent students only and didn’t specify that. I don’t understand why dependent students on food stamps get an automatic zero EFC and independent students don’t. I’d definitely qualify if I was single. We didn’t have the option of waiting until we were both out of college to get married because it’s too dangerous for me to be without health insurance. We have to be married for him to insure me through his job. Our income is low enough to qualify for food stamps, but not a zero EFC. There’s something very wrong with that. I don’t know what to do.</p>

<p>I understand the need to have a reliable car, but I don’t see why it has to be a new (or nearly new) car. It sounds like that’s just more than you can afford.</p>

<p>I drive a car that’s almost 20 years old . . . and, for at least 11 months out of the year, I’d consider it reliable. It always costs me money for repairs during that 12th month, but I’m guessing that my repair bills are still far lower than your annual loan payments. And I don’t even want to guess what the insurance would be on a car that new! Looking back, I don’t think I’ve ever owned a car that was less than 10 years old . . . and I don’t feel like I’m missing anything.</p>

<p>Find a reliable, older used car, and take some of the financial pressure off of yourselves.</p>

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<p>Getting IBR is not as straightforward as you are making it. In fact IBR looks at the income and family make-up you’re your entire household. Depending on your debt, your salary and your husband’s salary, you may end up either not being eligible for IBR, or your loan payments are going to be higher than you anticipated. The big if is going to be trying to find a qualified job (easier said than done). In addition, IBR is based on you making 10 consecutive years of on-time payments. The balance will be taxed as income, leaving you with a big balloon tax bill at the end.</p>

<p>Since we have already discussed this in a previously, I am just going to link the other thread</p>

<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1427376-student-loans-ibr-why-not-borrow-more.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1427376-student-loans-ibr-why-not-borrow-more.html&lt;/a&gt;&lt;/p&gt;

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<p>I feel for you and your plight and I wish you a full and speedy recovery. I understand your need for a car, but it does not mean getting a 2010 car that you cannot afford. Stafford loans were not designed for people to borrow money to make car payments where most low income students (don’t have cars to attend school). </p>

<p>As independent student, especially with out children, there is an expectation that you/your husband shoulder more of the responsibility for paying for your education(s). This means that you/your husband may have to have to work full time and attend school part time or if you required to be in school 15 hours then you fins some semblance of a part time job( yes, I know what it is to work full time, hold down a full time job, raise a child and a younger sibling). Please keep in mind that you and your husband are first in line when it comes to paying for your education. When you are not making sacrifices to pay for your education, you are essentially saying that others (the taxpayers and other people’s parents) should pay for your education.</p>