I see there is a check box under the student section, but it doesn’t seem to affect the FAFSA formula, unless I am mistaken. What if parent are displaced most of the year?
With some earnings, smallish?
With starting a business?
https://fafsa.ed.gov/fotw1516/help/fotw91h.htm
Which one of these categories for dislocated worker describes the situation?
In the past, it was enough to have lost a job and be “unlikely to return to a previous occupation” and/or under-employed, relative to prior work. I don’t think it’s meant for voluntary changes.
I think it’s still means-tested to have any affect. For instance, if one spouse earns $100k and the other spouse loses their job, then the working spouse’s income is too high to make a difference.
I don’t think leaving one’s job to start a business qualifies.
It can get you to simplified means so may not have to report assets.
The leaving the job was involuntary for both parents. I think with unemployment, some p/t work the income will be about 60 for family of 4. But they just decided to start a small business in the field of expertise, so the unlikely to return doesn’t apply.
The family income would need to be below the thresholds for simplified needs test in addition to dislocated worker. $60,000 is above that threshold.
Dislocated worker all by itself really doesn’t help at all…the income level must also be low enough to qualify for simplified needs test (I believe that one is under $49,999), or auto $0 (I think that one is less than $24,000).
Dislocated worker is one of the other criteria used to determine simplified needs or auto $0.