<p>Hi guys, my dad had been recently informed that he will be losing his job in a year. I was wondering what I should put for my dad's income when applying for colleges this fall because he will still have his job, but will not in a half a year. Thanks guys</p>
<p>Well that is difficult timing. Hopefully since he has so much notice he will find another job and it will be a nonissue. But there really isn’t anything to say or do at application time because they will also expect that he may well have a new job. You will just file with your 2014 taxes as usual. That’s the data that will be used for your aid. If you get admitted to a meets full needs school and he is out of work, you can appeal based on 2015 projected income when the time comes. But most schools don’t meet need anyway. In either case you can’t assume any change. When you file for the following school year, the 2015 income will be the one used.</p>
<p>The way it works with financial aid, is that the forms ask for the income earned in the previous calender year, just as it works with tax forms . In fact, the aid applications dovetail with the IRS forms and are verified directly against them So the FAFSA for the school year beginning in fall of 2015 uses the calendar year 2014 earnings. Just like you owe taxes based on what you earned that year, not what you are earning the date you are filing the return or any future situations, you are expected to pay for that school year an amount based on what you earned that year before, not what your current situation is or future situation may or will be. Situations can change and many have lost jobs, not make as much money, lose money in a year’s time or also reap some windfalls. FInancial aid is based on what has actually happened, not what could happen.</p>
<p>However, anyone who can see hard times coming, a company closing, smaller job opportunities, etc in the future should be taking that into account in future expenditures. Because financial aid beyond the government entitlements is not a sure thing, any more than finding a job that pays what one wants, what a family should do that is expecting downsizing in income or more needs in the future as a member is getting ready to pick a college is to make sure that affordable options are in the mix. </p>
<p>It would NOT be a good idea to look at schools that do not guarantee financial aid and are just affordable under the current situation when you know it is likely that your financial situation will change. Fortunately there are tools out there that make so you can get a good idea what you are going to be expected to pay under various scenarios. Run some numbers, playing around with amounts with the EFC estimators and the NPCs of colleges you have in mind. Make sure you know which colleges will guarantee to meet need and which do not. A school that guarantees to meet full need that you have examined through the NPCs might be a good bet if you can get an acceptance to one and the numbers are such that the possibility that it could work out when times get dire. A similar school that makes no such guarantee would not be a good bet because it could just say “too bad” when your need increases. </p>
<p>When you complete your 2015-2016 FAFSA (the one for next year) you will be putting your dad’s income from 2014…which sounds like it will be the full year. And actually, it sounds like he won’t be losing his job until halfway through 2015. </p>
<p>And lastly, if he knows this now, hopefully he is actively looking for a replacement job, which he very well could have by then…or before.</p>
<p>This happens all of the time, OP. Some friends of ours are going through this right now. It is doubtful that a job bringing in as much as the one person is now making, will be in the picture, and the person is thinking about slowing down work wise anyways. This means all sorts of future plans have to be reconsidered. They had planned to move to Florida, but now a medical issue makes this more complicated as they have a good, comfortable infrastructure here, and would have to start from scratch down there. They may sell the house earlier than they thought the would, and there isn’t going to be the money to have two residences, and the one here is going to be downsized tremendously. A lot of these sort of things are being actively discussed. Where the youngest will be applying to colleges will also be a major factor. </p>
<p>Though it’s a tough pill to swallow, these are early warnings that are good to get rather than the events occurring with little or no warning. At least the possibility is on the table when it becomes a probability before it becomes the certainty. </p>
<p>your dad has a YEAR now to find a job…which will likely happen. Your dad is actually lucky to have this much notice. He should start looking NOW, and quit once he finds a good offer.</p>
<p>right now, you have to proceed as mentioned in above posts. You are acting as if you know for sure that your dad wont find a job and will be unemployed. that would likely only happen if you dad sits on his hands and waits for the pink slip (which would be very dumb)</p>