Effects of Lost Job+Severance on Financial Aid

<p>My daughter got excepted to USC with a 75% ride. I got laid off May 22 with a good severance package when add to UnEmployment I will make more in 2009. If I report this to USC will may daughter loose or get her finical aid reduced?</p>

<p>It will not affect her 2009-2010 aid as that is based on 2008 income. You will of course have to report it on her 2010-2011 FAFSA. If your 2009 income is higher then it will probably increase her EFC, which will probably lead to a reduction in her ‘need’, and therefore her need based aid for 2010-2011 school year. Each years need based aid is based on the prior years income and the assets in hand when you complete FAFSA. Any change in income and assets will lead to a change in financial aid.</p>

<p>You can request a special circumstances review after you file your 2010-11 FAFSA (which will ask for 2009 tax info). The school may be able to do a one-time exclusion for the income from severance (and put some/all into assets instead) or use your projected income for 2010. They are under no obligation to make any changes, but they very well may do so. You won’t know until you ask!</p>