Hey! So my Fafsa has been submitted but my dad will be taking a 26,000 dollar pay cut starting at the end of spring. Can I change that and if so will it hurt me or help me? Ultimately my parents will be the ones on Fafsa making the change but I am just curious.
That would affect the 2016 income, not 2015.
So it would not change this year’s FAFSA and also not next year’s because 2015 income will be used for 2016/17 and 2017/18 FAFSA.
But you could talk to the school you will ultimately attend and tell them of the income change and see if they are willing to do a personal judgment.
There are a LOT of families who will have income changes one way or another between the 2016-2017 and 2017-2018 FAFSA forms…both will use the 2015 tax return information.
I asked this question to a financial aid person I know. She said her school will not be doing special circumstances reviews based solely on income changes for the 2017-2017 FAFSA year. YMMV depending on the school.
Here is my question to others…so if your income is significantly HIGHER in 2016, do you plan to inform the school, and ask for a review which would be in the school’s favor? Bet not.
Of course you wouldn’t, but that doesn’t change the fact that it seems very unfair to the individual whose family income has a major drop in 2016!!! I am in the same boat. Our income in 2016 will be HALF what it was in 2015!!!
Our income will be significantly lower in 2016 as well.
I’m guessing the thing that will be important is the REASON. If you have a disabled parent, or a oarent who loses incime due to illness or a job loss, or something of that sort, schools may be willing to do a special circumstances review.
I’m not expecting a review…because I simply chose to work in 2015, and will be working far less in 2016.
The questions on FAFSA are very specific and you answer the questions asked, not what it might be, or what you think it should be. “What was your income in 2015” is pretty specific.
You can appeal for any reason, and many schools do consider a reduction in income on an appeal. How it was explained to me was they are basing FA on the current income and assets, but use prior year income to judge what that income will be because of course a school can’t have 20,000 students updating financial info every month. Most families will not have a significant change income, but if you do, they will consider it. I filled appeals at two schools after an income decrease in 2014 (when the FAFSA was based on 2013 income). Both considered it, but one gave a much more generous amount on appeal than the other. Same 2014 income was used to file 2015-16 FAFSA, and both schools granted the max. You can just never tell what they are going to do.
What you are saying is absolutely true in a typical special circumstances situation. Unfortunately, the next year will be the transition year. My friend specifically said…they will not be doing special circumstances reviews ONLY because of salary changes for the 2016 year…when the 2015 tax year will still be used. They will consider other extenuating circumstances…high medical bills, a parent who becomes disabled, a parent who is laid off from their job.
But they will not consider other circumstances…e.g. Oarent decides to retire at the start of 2016 tax year and has lower income. Parent changes jobs, or decides to work part time instead of full time.
This is going to be a challenging transition when the 2015 tax year info is used for the second year.
I would suggest that folks contact their schools…but remember…case by case…and not all,schools do special circumstances reviews…at all.