<p>Hi all,
My husband got a one-time pension payment for past years this year, which moved our EFC from about 10K to about 27K (used for ever looming bills, etc.) We are very disappointed, as we are lower or middle-middle class and could never afford that much out of pocket, but we are considering a loan for the first year if he gets into his ED college. My question is whether schools calculate your EFC anew each year, and if you need more the second year, are they generally accomodating? I know you need to file a new FAFSA each year, but are they stingy about it? We could not afford a huge loan for all 4 years, so if good need schools don't adjust, we are in trouble.</p>
<p>Yes, they definitely calculate need-based aid each year. How generous the school is depends on the school. Many will be generous, since they want to keep their retention rate up. Schools that promise to meet 100% of need are, of course, more generous.</p>
<p>You might also want to contact the FA office of your son's ED school, and let them know that this payment is a one-time deal. They have some discretion within the institutional methodology particularly (dealing with their own funds) to make some adjustments if there is an unusual circumstance. (We had one and they looked at our FA award again.)</p>
<p>Thank you for your advice. I called the school and told them I had not calculated this on my CSS (my husband forgot to give me the paperwork) and I did write that this was a one time pot of found money, but haven't heard anything yet.</p>
<p>Adi- be sure to confirm the conversation you just had with the school with a polite follow up letter. Include the date, the name of the person you spoke with, and a brief summary of your financial situation. Make sure your child's name is in the letter.</p>
<p>It never ceases to amaze me every April when posters start to write about a conversation they had with a financial aid officer back in November which was not reflected in the award they received. You need to document both the conversation, and the facts at hand (one time payment, not to be repeated, not reflected in the paperwork you've submitted; the distorting effect it has had on your EFC.) You may have just spoken to a temp who answers the phones in the Financial Aid office-- he or she undoubtedly took notes but whether those notes make it to the decision maker is up to the FA gods.</p>
<p>I will type up a letter tonight. On the downside, I spoke to the Financial Aid office, and they assured me that they put the information in my son's file, and then hastened to say that they had reviewed it, and he was good to go. </p>
<p>Kind of sounded to me like he is not going to be getting a good ED letter. </p>
<p>:(</p>
<p>Oh, well, I do believe kids end up where they should end up. Thanks again!</p>
<p>FA usually adjusts from year to year and depending on the school FA department, a one time income thing depending on the reason could be overlooked.</p>
<p>My D's first year at her college, I recieved a settlement from a former employer who played hanky panky with my retirement account. I explained to the FA director that these monies were for stealing my pension back in the 90's and they were going back as pension dollars. even though in the settlement they counted as income. in our case not a problem.. It's going to depend on the school.</p>