I recalled reading someone mentioned that a college changed their fafsa and today I received a letter from a college that they have forwarded some corrections to FAFSA… I am really upset, left a message to the financial aid and not sure what will happen…
DD received financial packages from several colleges and I have been very diligent in sending the required documents, but there is one college that did not ask for anything as I expected to be asked for verification, I contacted them and sent them my IRS transcript anyway. They told me they wouldn’t ask for document until mid-May but sent me a few to fill document to fill out as I like to be prepared, but as those were not in the portal, hence I didn’t return and kind of write the college off… Then today, I saw a revised (and reduced) package from them on the portal and that there was something that they said they would report to IRS on our income because there was an untaxed income (rollover), but they never asked me to show that they were rollover. If they did change the fafsa information, what can be done?
Call their financial aid office. If you did a rollover…and you used the DRT, your rollover was included as income.
You should have the documentation that proves that this was a rollover. And not actually “income”.
Once you get that to the college, you should be fine.
If you used the DRT, and then made that rollover change manually, that would also create a problem.
The colleges are REQUIRED to make changes if the info doesn’t align.
Just call the college and ask how to provide them with your rollover information.
It’s the one glitch with the DRT I sure hope they fix…while they are fixing the DRT anyway!
I did not use DRT and sent them the tax transcript. Incidentally there was another college asked me about the rollover, I sent them the 1099 form. What annoys me with this college was that they told me they did not ask for supporting documents until mid-May, but as I did not use DRT, therefore, I sent them the tax transcript anyway. In their “revised” package, they put an indication that it may be rollover, but what annoys me was that they didn’t ask me for any proof.
The rollover issue is a huge glitch in the fafsa system, in my opinion.
We had to deal with it a few times when DS was in college…and he qualified for NO need based aid…At all. He was selected for verification all four years of undergrad, and at least two of those years, we had rollovers.
@kelsmom I mean really…how hard would,it be to put in ONE friggin line in the fafsa for a rollover amount…so it would not be counted as income.
therefore, the rollover is common and colleges should know…why didn’t they ask me? does it mean that even a parent has no interest in a particular college, the parent should follow up with providing documents (in this case, they asked for none) in case the college would just change the information
The college that changed the info used it.
If you have NO interest in that college…why not contact them, and say you have decided their school won’t be your choice.
In any event…if this college is OFF the table…just call them and let them know…and then you don’t need to provide them with anything.
Rollovers are not common in that lots of people have them…but they are common in that the FAFSA when using the DRT doesn’t account for,them.
But if you filed a fafsa and didn’t use the DRT, did you include your rollover IN your income? If so…that was YOUR error.
If they made changes to fafsa, will it affect DD’s EFC for other colleges? Somehow they figured that DD’s EFC is now over $120K.
$120,000 EFC for ONE year.
Really…you provided the rollover information to the other colleges, right? They have it, and are not including it as income.
You can either send it to this college and have it corrected…OR you can just call them and decline the offer of acceptance at which point…the financial aid won’t matter at this one school.
But really…if you filled in the numbers on the FAFSA yourself…and didn’t use the DRT! You should have taken care of this when you filed your FAFSA, I believe.
@mommdc isn’t this rollover only an issue when the DRT is used?
If there was something wrong or not following convention, sounds like they would have made the change, regardless whether you sent it now or in May.
Your 1099R was properly coded, right? And you properly annotated on the tax forms?
“In their “revised” package, they put an indication that it may be rollover…” and if so, they may revise again.
My understanding is that @annamom didn’t send the 1099 re: the rollover to this particular,college.
But the kid isn’t interested in the college…so just let it go!
Yes, initially I did not send the 1099 to this college (or any college if it matters) as I think it was properly indicated on our tax return. Eventually a college contacted me and asked me questions, hence I provided them the 1099. What really annoys me was this college told me they did not ask for the document until the kid enrolls and I was just surprised they just changed it…Yes, I didn’t include the rollover amount but I think the college looked at the tax transcript and decided that there was a withdrawal and added it back…Yes, they revised the EFC as over 120K for one year…This is a college DD likes, but she is okay with other colleges as well, hence I just put it in the back burner and I did not expect them to change it without asking me for documents, it seems that they looked at the tax transcript and decided to change…
My question is will it affect the financial aid package for other colleges? can the other colleges see this change (and so later) then suddenly decides to revise their packages?
You said you sent the 1099 documentation for,the rollover to,the OTHER colleges. Right? If so…they know it was a rollover, and it has been considered already.
This college did NOT have the proper documentation…right?
@kelsmom can you chime in here?
@thumper1 yes, the other college asked me and I sent them the document. This college did not ask me and just revise the package, when I found out today I immediately sent them the 1099, and left them a voice message, but I do not know the impact of this college changing fafsa as there are a couple of colleges didn’t ask me about the rollover… for all other colleges, they have required documents on the portal and I sent them everything, but I suspected those information are not sufficient (due to other financial information)…but they never asked me additional documents…I think they are waiting for DD’s non-fling verification letter… Again, I am just worry about the changes made by this college to fafsa and put my EFC to be over $120K…
Call the college financial aid departments and ask. Be prepared to send the rollover info to,them immediately.
But you sent this college the same info that caused the other to ask you, right? …one college that did not ask for anything as I expected to be asked for verification, I contacted them and sent them my IRS transcript anyway.
You sent the IRS transcript and it triggered issues. What they would have asked you for in May doesn’t matter, you sent it now, they apparently ran it through their process.
So, same as the other college, they question the rollover?
And you now followed through the same way as before, sent in the 1099? So, is the concern that you’re waiting for them to review? Or that they made the changes based on the info you sent them, without waiting for your explanation?
You aren’t done yet. But next time, if you have a heads up, try to send all that’s needed.
@lookingforward you are correct. For this college, they didn’t ask me. I found out when I received an email on revising the package. I logged onto the portal and found out the revised offer and as it mentioned rollover, hence I suspected it may be due to the rollover, hence I immediately sent them the 1099. Their revised offer also mentioned that they had contacted fafsa to make the changes… I sent them several mail and left voice message to try to find out what they have changed… they didn’t call me back, but in email they said they are supposed to make changes on fafsa… what I was upset of they should have asked me for support document before making the changes…and I am concerned the impact to other colleges with the new false information entered by this college…
You took the steps, now see what happens next.
Yes, they can submit info about changes to Fafsa. (Our college did, but it was about a minor amount.)
You feel they should have asked you first. They may feel you should have sent any supporting documentation along with the IRS transcript, in the first place. That is: the 1099R, with the proper code showing it as a direct transfer,confirming it’s not income.
If you had a heads up from the other college (they needed the 1099,) it would have been logical to include it for this college.
The tax return should have the rollover amount listed with ROLLOVER next to the line, and it’s not taxable income.
If you didn’t include it on the FAFSA because the AGI did not include it, then the college after finding out that this retirement distribution was a rollover, should not increase your EFC.
I think the DRT doesn’t distinguish that it is a rollover. So you have to subtract it out or contact the college.
Can you send a mass email to all colleges letting them know that you had a rollover and that one school upon you sending tax transcript changed the FAFSA and EFC increased to $120k.
Attach the 1099R if necessary. Does the 1099R have the code for direct rollover, with nothing being taxable?
I sent tax transcript and not DRT. I didn’t realize a financial officer would mix up a rollover as it is not included in the AGI.