Fafsa and being laid off

<p>I am a dependent student filling out the 2009-2010 fafsa. My dad who is the only source of income for my family recently lost his job. Is there anywhere on the form where this can be noted? I think I am suppose to use the 2008 income tax return which would probably result in a high EFC that my family can no longer afford. Thanks for any help.</p>

<p>You can't put it on FAFSA. You have enter 2008 income data as is. Contact your school financial aid officer and explain the situation. If they think an adjustment to your FAFSA is justified they can adjust your FAFSA data to reflect loss of income. This is at their discretion.</p>

<p>but wouldn't this student be able to put their parent down as a 'dislocated worker' which MIGHT affect the EFC based on other things as well</p>

<p>Oh yes - forgot about that. If the income is below $50k that may make a difference to the EFC.</p>

<p>Yes, they can check dislocated worker. However, all that does is make a family earning less than 50k eligible for simplified needs (no assets considered) or less than/equal to 30k eligible for automatic 0 efc - without needing to be eligible to file 1040A/1040EZ or without having to have a household member receiving federal means tested benefits. That's all it does.</p>

<p>As far as income adjustments go ... that's a pretty iffy thing. We won't automatically adjust income based on loss of job. If a family goes from 80k a year to 0, that makes them Pell eligible if we simply adjust to 0. It is February - school doesn't begin until August or September. That family could be earning 80k again by that time. It's not an easy decision to just adjust now. We are still in discussion stages about this, since it will be a huge issue for us this coming year. Currently, we are adjusting based on real income for the year - so if the student gives us info in September that shows current year income & how it was affected, along with a layoff notice, we will consider an adjustment. But the adjustment uses the real earned income to date - with a decrease for the future, if we feel it is justified. We don't just say, "0 for all year." Also, if a parent takes a buyout, that is a voluntary separation, not a layoff. We won't adjust income for that.</p>

<p>I lost my job on October, about 4 weeks after my S started the fall semester. At my son's school, the rule is that you need to remain unemployed until 10 weeks into the subsequent semester for them to even discuss an adjustment with you. So, I have to meet with financial aid in mid-March to see if they'll make an adjustment for the 2009-2010 year. </p>

<p>I did check the dislocated worker box on the FAFSA, but it had no impact because my AGI (based mostly on a job I lost 5 months ago) was too high. </p>

<p>Unfortunately, as kelsmom says, I think this is an issue that schools will spend a lot of time dealing with this year.</p>

<p>My husband lost his job in october of 2007. Once we got our package in April of 2008 he was still unemployed. </p>

<p>We appealed, and the school used professional judgement to adjust our FAFSA to reflect the expected income in 2008, but with the provision that no institutional funds would be released for Spring 2009 until we submitted our 2008 tax forms showing what our actual income had been. I thought this was quite fair, as it took into consideration the possibility of what would happen if my husband found a job.</p>

<p>As already stated, the use of professional judgemet is at the discretion of the school.</p>

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<p>Since that is Federal Aid, is that something that is easily adjusted in August? Anyone who qualifies gets it. Or, is there an institution aggregate $ limit, and it would have been given out to other students by then?</p>

<p>Pell is the one "entitlement," meaning that is a student qualifies, he gets the money. SEOG & work study are limited funds that schools get & disburse according to their students' needs.</p>

<p>If the situation were to change in August, or if the school wants you to wait until closer to the semester in which the aid is to be disbursed, and if they then decide that the student is Pell eligible, the student WILL get the Pell grant. And if the situation changes midyear & the school adjusts, the Pell is still there for him.</p>

<p>However, schools walk a fine line. The government made the rule that base year income is the full year before the beginning of the aid year (2008 for 2009-10). Schools are not allowed to make a policy to treat groups of people a certain way if it goes against the rules. For example, a school cannot decide that all people who are laid off will have their income adjusted to 0 (or to whatever their unemployment wages will be). Each case must be decided individually. It's very time-consuming, difficult, and stressful for schools and families.</p>