I am an upcoming senior who will be attending college in Fall 2016. That means I will fill out the 2016-17 FAFSA (right?). So i would have to use the tax return form from 2015? My parents’ income before my dad got laid off was around 200,000 (EFC was 45,000). However, after he lost his job, our income would only be about 70,000. But since he lost his job in June of 2015, how would the 2015 tax return form show our income (meaning, what months does the tax return form consider?)? How much financial aid would I be able to get? I am assuming that he doesn’t get another job by the time I fill out FAFSA in 6 months.
Sorry if I am uneducated on how FAFSA works. Before my dad lost his job, I never expected to receive any substantial financial aid so I never really looked into it.
Thanks in advance
See https://fafsa.ed.gov/
For many people: January to December
Taxes are from Jan. 1 to Dec. 31 each year for almost all people. So your dad has already earned about half his annual income for 2015. If his earnings were $130k per year, he’s likely to be in a position that qualifies for some kind of severance package which will likely be added to his 2015 earnings. Depends on how it’s paid out.
Just because income and efc drop, doesn’t mean all schools will give you more aid. How much finaid you would get depends on the school. For the 2016-2017 school year the income will be too high to qualify for federal aid other than unsubsidized loans.
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However, after he lost his job, our income would only be about 70,000. But since he lost his job in June of 2015,
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So your dad will have earned roughly $100k for 2015…and your mom will earn $70k for 2015? Is that right?
Did your dad get a severance pkg? Likely with his income, he was awarded a severance pkg. Is he getting paid for any vacation that he didn’t take?
Do your parents have savings? Home equity? investments?
Filling out FASFA won’t be any help, except for loans.
Right now, it’s too early to panic. Your dad may find a new job within a month or two.
In the meantime, find some schools that will give you large merit for your stats.
What are your parents saying about paying for college?
Excellent suggestions there. Also, don’t be afraid to take a gap year if you and your parents find out that your family needs a bit more time to make things work.
I have safeties that will give me full rides, and my parents can honestly afford to pay for almost anything, though they would highly prefer to pay under 60,000 (for all four years), especially since im planning on going to med school and my number one goal for undergrad is to save money.
Thank you to everyone who replied