<p>First of all Grenmom, any asset you reported or report as the child’s asset is an auto 20% directly added to the FAFSA. The student gets zero asset protection allowance, as you, the parent does, and you only get zapped 5.6% of the asset vs 20%. The 529 is an exception. But yes, if you have the money, you do get assessed by formula as it stands and the bottom line is that the schools do not care if you want to live on that money for the rest of your life. We all want to do that. And everyone wants to save that 529 for possible grad/prof school. Doesn’t work that way.</p>
<p>For future years, make sure your DD’s assets are a zero by having her spend down her money, or have it in a joint account with your name and SSn listed first so that it’s listed as YOUR asset not hers and isn’t hit so hard. </p>
<p>As for your ex losing his job, you can contact the schools and they have procedures for that, if you are counting on child support for him for the future. Since the FAFSA does not include his income anyways, and if you have no child support requirement in place, that may not come into play. But then again, you got a large amount of support last year, and if you were expecting it this year and now it’s not going to happen…well, that all depends on the school and professional judgement. </p>
<p>But yes, you have the assets, they are even in a designated plan getting tax protection so that they are there to pay for COLLEGE first. Grad school, prof school is a maybe. College is a now. So those funds are there to for your DD’s college costs. But they are only hit up 5.6% for FAFSA purposes which is a deal, IMO, considering the whole underlying purpose of them. </p>
<p>But contact the colleges, and they will have their procedures in tersm of how to report this job loss of your ex–they will differ by school, and will also tell you what you need to send in to them. I guess the oficial child support agreement showing that this is money that is due from him next year, and now not likely to be paid because of job loss. You might want to get the court paper on that and get notarized copies to send. The schools will likely want to see proof that this was income you had good reason to expect to get this calendar year and you now are not. And then a copy of your ex’s severance notice and app for unemployment. But really, the schools have their own lists of what they want from each student whose parents lose a an expected source of income.</p>