Hello!
I am currently filling out the FAFSA and CSS forms for my college apps, but want to make sure that a crucial change in my family’s situation is known to colleges.
One of my parents retired partway through the last tax year (2018), and that was the major source of income for my family. Because my family’s income will be SIGNIFICANTLY lower this year, I would like to know how to include that information in the FAFSA and CSS.
If it is not possible to use that new information on the FAFSA and CSS, what should I do? Should in the 2018 information and contact my colleges about it? And if so, when should I contact them?
Thank you!
As I recall, CSS has a space for you to type whatever in a no-text-limit box for special circumstances or things the colleges should know. I’d start there.
For the 2020-2021 forms, you MUST use 2018 tax year information. No choice.
If your family income is significantly reduced, you can request a special circumstances consideration from each college. Keep in mind, these are not guaranteed to result in increased aid. And they are handled on a case by case basis.
I do have to ask…was this a mandatory retirement or was this an elective choice your parent made? I’m only asking because if you ask for a special circumstances consideration, a mandatory retirement as an explanation will likely be viewed more favorably for you than an elective one.
Does your remaining working parent have a higher income. What about college savings? What about a pension or SS for the retiree parent? Those all count.
Have your parents told you how much they can pay for college annually?
And lastly, keep in mind that the vast majority of colleges don’t meet full need for all accepted students anyway.
For financial aid for the 2020-21 school year , the income reported on the FAFSA is 2018’s.
You can note the decrease in income from 2018 to today as a Special Circumstance. I believe it has to be addressed individually to each college Special Circumstances reviewer usually occurs after the fact, from what I have seen, but personally, I would send the explanation to each financial aid office before the award is given. I do not know how the financial aid offices handle this. I suspect it varies.
Your parents do not qualify as dislocated workers which is a flag to FA officers to take the situation into consideration. If the retirement were forced, it may be possible but a planned retirement does not meet the definition
FAFSA will be run using info as given on the form, which is 2018 income, and it’s up to each FA Officer to use professional judgement in changing the EFC.