<p>I am a Junior in High School, and my Dad is 61 and almost retired. He isn't sure about exactly when he's retiring, but it will probably be in the next 2 years. Are there are any changes in the EFC if the parent is extremely close to retirement, or will changes only take effect when said parent is actually retired? He is also divorced, so I wont have another source of income from my Mom, either.</p>
<p>Also, how much on average would the EFC be expected to drop once he is in retirement?</p>
<p>The changes in EFC should take place only when your dad is retired. My friend actually had a problem with this as his parents had a "severance bonus" last year or something that was really large and the college saw that and didn't give him any aid. He had to call them and explain that his parents were retiring and their income was going way down.</p>
<p>As to how much the EFC will drop, that depends on how much your father is making now and how much he will be receiving when retired.</p>
<p>File independent?</p>
<p>you can't file independent unless you have a dependent of your own /are married/24 yrs old</p>
<p>My parent's income is half what is used to be in 2004. When I apply to college in Fall of 2005, will they ask for the 2004 tax returns for FAFSA?
My parents would rather submit the new 2005. Will the deadline permit this?</p>
<p>when you apply to college for the 2006-2007 school year you may begin submission of PROFILE using estimated data for 2005 in fall of 2005.
You will not be able to begin filling out FAFSA until January of 2006 and will do so using estimated ( and then corrected) data from 2005.
I suggest you fill it out as soon as you can( starting in Jan)- then correct it online when you have final info.</p>
<p>Retirement in itself is not going to affect financial aid except in terms of income changes. If he gets more money after retiring, you have a higher EFC. In fact that is what happened to friends of ours who withdrew a large sum from pension/401K plans to facilitate a move and a start up of a home business when the Dad retired. Though they were worse shape that year with no employment income and a reduced pension, that withdrawal in included in income and jacked up the EFC. Withdrawals from *****on plans are considered income.</p>