<p>Is my husband considered a dislocated worker for purposes of FAFSA?</p>
<p>Background: We are a one-income household. My spouse was laid off from his job last July, and his employer finally filed for bankruptcy back in December. </p>
<p>He didn't file for Unemployment Benefits, but he could have.</p>
<p>Instead, he landed a consulting job as a contract employee through an executive services agency. He is considered a full-time employee of the of the placement agency, not the company. The agency doesn't provide vacation, sick days, retirement plans or health insurance, nor does the company they placed him with. </p>
<p>We are continuing (expensive) COBRA health insurance company through his previous employer, which we will continue to do so long as they offer it (could end at any time).</p>
<p>FAFSA doesn't give a definition of Dislocated Worker, and my husband and I cannot figure it out. </p>
<p>Yes, he's working full-time, but he's not making anywhere near his old salary, especially considering he has no benefits and we're paying for our health insurance. The only reason he left his previous job is because his company downsized.</p>
<p>Any thoughts?? </p>
<p>Thanks!!!</p>
<p>If he is working he is not a dislocated worker. </p>
<p>Completing</a> the FAFSA 07-08/The Application Questions(55-83)</p>
<p>
[quote]
85. Dislocated Worker. As of today are either of your parents a dislocated worker?</p>
<p>**In general, a person is considered a dislocated worker if he or she</p>
<pre><code>* is receiving unemployment benefits due to being laid off or losing a job **and is unlikely to return to a previous occupation;
has been laid off or received a lay-off notice from their job;
was self-employed but is now unemployed due to economic conditions or natural disaster; or
is a displaced homemaker. A displaced homemaker is generally a person who: previously provided unpaid services to the family (e.g., a stay-at-home mom or dad), is no longer supported by the husband or wife, is unemployed or underemployed and is having trouble finding or upgrading employment.
</code></pre>
<p>If a person quits work, generally they are not considered a dislocated worker even if, for example, the person is receiving unemployment benefits.
[/quote]
</p>
<p>It only makes a difference anyway if your AGI is below $50k or below $30k. All the dislocated worker question is for is a way of qualifying for the simplified needs test (still requires AGI <$50k) or the automatic 0 EFC (still requires AGI <$30k) if you do not meet the tax filing criteria. If the income excees the limits you do not qualify, dislocated worker or not.</p>