I have a sophomore in college and a senior in high school who is in the process of applying to colleges. I will be filling out the FAFSA soon and have a question. My husband had a one time income event last year due to his place of employment being sold and a distribution of a monetary benefit from the old company before the sale took place. This distribution was given and added to his yearly income amount. Since there is no where on the FAFSA to explain special circumstances, that this was a one time event, will I need to appeal each Financial Aid award from my daughter’s colleges she is accepted to? and also appeal to my son’s college?
Thanks in advance!
Yes, you have to appeal to each college. There is no way to explain any special circumstances on the FAFSA.
But don’t count on colleges ignoring this income. It’s money, it’s there for your use.
No, I understand, it is what it is. It is not a lot of money, but none the less added to our yearly income.
If the colleges use CSS you can explain special circumstances at the time of applying for FA. You can also appeal the awards separately for each college. Make the appeal short and sweet. Use bullet points. Be factual and dispassionate.
When you explain special circumstances, you will have more success if you put it in context, i.e. “Husband received a 10K payout when his company’s ownership changed, to compensate for the loss of his annual bonus last year”, or “Husband received a 15K, one time award to help pay for an increase in the costs of health insurance, life insurance,and disability when his old plans were dissolved due to an acquisition.”
it’s not like it’s free money, right? He got a payout either because he was losing a portion of deferred income (which he’ll never get now), or his benefits became more expensive, or a perk/benefit got cut, or some other previously promised type of compensation. So you need to explain more than just “it’s a one time event”- help the FA officers understand WHY it was a one time event, and what the financial impact of losing the previously promised benefit/payment would be.