<p>Hey guys its been a while since I've been on here, but I completed the FAFSA and jsut got my EFC. So basically it says its 52849. Big problem, this is what they expect me to pay per year? How can the EFC be more than the cost of any college?
Ok now the problem with this is: my mother passed away April 06 and we received life insurance benefits from her passing. So when I filled out the FAFSA it looked as if the adjsuted gross income of the parents was A LOT higher than what my father makes a year. He only makes about 48k. Now I'm guessing that a widowed parent with only 48k income would get a good amount of aid? Can the life insurance benefits be counted against me for financial aid? How is this fair, my father and I were given the life insurance benefits to help us over the rest of our lives now that there is only one person making an income every year, not to just spend the first year we have it on school because the financial aid process did not take this into account.
So basically I'm asking: is there anyway to write or talk to someone and explain my circumstances (where the figures can be explained as to why we have that money and not just look like my father made a considerably higher income last year than he actually does) and just let them know that life insurance is suppose to help aid us over the rest of our lives. Seems really unfair that we're being punished for my mother passing away.</p>
<p>Life insurance is usually considered an asset if it's been dispersed to you. Did you just take the dispersement of cash from the policy or did it get set up in some kind of trust or something else? You can contact the finaid offices at the schools and ask who to send a letter to describing the circumstances (death of a parent...loss of income...etc).</p>
<p>Well it worked separately for my father and me. He received his portion as money in his bank account, but for me it was set up where I can't do anything with it until I turn 18 (currently 17).</p>
<p>I don't know about the life insurance question. I do offer condolences, though, Troteck.</p>
<p>As far as the EFC being higher than college costs, no, you don't pay the EFC; if it's higher, you pay the sticker price (unless you get merit aid.)</p>
<p>Thanks, Garland.</p>
<p>I do know that the EFC isn't what you have to pay, I was just saying that to emphasize my overall point-- why not jsut say you aren't eligible for any aid rather than say you are able to pay X amount, even when X amount is ridiculously high. </p>
<p>I plan on calling a couple schools' financial aid offices on Monday when they're open to see if I can better explain my circumstance to them and see if that will affect how they view my EFC.</p>
<p>If anyone knows about circumstances such as these or has any better ideas I'd be grateful to hear them, thanks.</p>
<p>Troteck, I am sorry about the loss of your mother. It does not seem reasonable that the insurance proceeds to your father has to be included in his income, but according to FAFSA rules, it does. I would write to each financial aid office in addition to calling them and explain the circumstances to them, and see what they can do. They may not be able to do anything about eligibility for government aid, but they may be willing to do something regarding their own funds. An issue that may be a sticky one, is your part of the proceeds. I would expect that those assets will be considered for college costs. if not in income, but as assets. I have seen that situation several times before and there does not seem to be leeway there.<br>
The best solution maybe to sit out a year, take a gap year upon acceptances, and reapply for financial aid next year at the college of your choice. This eliminates the proceeds as income for both you and your father which is the biggest hit. It also gives you the opportunity to spend down your money which is going to be assessed at 20%. It gives you time to work out how to best present yourself on next year's FAFSA to get them most government aid. You can also get some idea on which colleges are the easiest to deal with in terms of financial aid offices when you apprise them of this situation. Most schools that use FAFSA only are not so generous with aid. I don't know if you have also used other aid apps or Profile for some of your schools. But you can pick the school in light of how the fin aid office is willing to work with you, and spend the year doing some worthwhile activity. I say this because gap years are so encouraged by top school, and by our highschool and other highschools.<br>
Again, my condolences to you and your father, and I hope you come up with some favorable answers when you talk to the colleges Monday.</p>