<p>Hey guys I just have a couple questions to ask everyone.</p>
<p>I'm a rising senior and I have a couple questions about extenuating circumstances, early decisions, and financial aid.
My mom passed away in April 06 and as the year goes on me and my family will be receiving certain life insurance benefits and other things of that nature.</p>
<p>I'll be getting a really good chunk of money from all of this that gets put in the bank and can't be touched until I'm 18. I'm applying to some really tough schools Cornell, GWU, Georgetown, BU, etc, and was wondering how much this benefit thing is going to hurt my financial aid award.</p>
<p>My father's job only pays about 45k a year and he's the only source of income, my older brother is enrolled fulltime at another college via scholarships he's gotten.</p>
<p>I was really planning on applying ED to whichever school I like best but I've heard ED applicants don't get a good amount of fin aid.</p>
<p>Is there any way to explain to the financial aid people that certain numbers on the application are only that way for one year (tax return for future 2006 will have my dad's income higher because certain things from my mom get added to his income for that year but only that year).</p>
<p>So basically I'm asking: 1) Do colleges expect me to pay for my entire education with the money I'm awarded from my mom?</p>
<p>2) Can I still get a substantial amount of aid knowing I'm receiving a lot of money?
and applying ED?</p>
<p>3) Is there anyway to explain these extenuating circumstances to the financial aid office before I submit my application instead of waiting, getting told I'm getting no aid and having to appeal?</p>
<p>Thanks for anyone that can help me, I appreciate it. :)</p>
<p>When do you turn 18? Schools will expect you to use your assets (the proceeds from the life insurance policy) to pay for school.</p>
<p>Talk to a financial advisor about whether the money (or some of it) can be placed in a 529 savings plan. See this article:
<a href="http://www.savingforcollege.com/top-tip/top-tip.php?top_tip_id=7%5B/url%5D">http://www.savingforcollege.com/top-tip/top-tip.php?top_tip_id=7</a></p>
<p>This is a complicated strategy, so it is best to get some advice from a professional -- because even the article I cited suggested that this may be a "loophole" that will not be available in the future.</p>
<p>Please also note that only 20% of your assets are counted for financial aid for the 2007 school year and beyond - so for example if you were getting $100K from life insurance, it would only increase your EFC by $20K the first year. (That's a lot of money, of course, not as much as the cost of attendance at many private colleges).</p>
<p>Note, that the new law only appliles to Fafsa. Unless Profile changes, too, 529 balances are still reportable on lines 38 (Prepaid Tuition Plans) or line 39 (College Savings Plans) of the Profile -- and are likely used in FinAid calculations by those schools that use Profile.</p>
<p>I thought that the amount from a student's assests was 35% but the numbers may have changed. But any money in the student's name will be counted as assets when awarding financial aid. You will also, I imagine, receive social security benefits until you are 18 and graduate from high school - and these funds will also be included in the amounts you report for financial aid although they will end by the time you reach college. We added a note to remind the schools that this money was no longer available.</p>
<p>good point, 2collegemom. As noted in the link above posted by calmom, for federal purposes under FAFSA, only 20% of a student's assets will be counted effective '07/'08, but Profile may remain the same, i.e., ~35%. And, I assume that the OP's schools are Profile schools.</p>
<p>I just want you to know that I am very sorry to hear about your mom's death, and even though I don't know you, I wish you support and comfort as you move on with your life.</p>
<p>I can't give advice on your financial situation because I'm no expert. I do think it would be a good idea, however, to talk with a financial advisor who's experienced with helping people with college-related concerns.</p>