<p>I'm a married, independent student (undergrad). Next year, my wife (unemployed) will be going to school post-grad. My younger sister who will be living with me (i will be claiming her as a dependent). will be a sophomore in college also.</p>
<p>I make about $66,000 a year (40 hours/week). Will we (My wife, sister and I) be eligible for federal loans? Will there be a cap on the federal loan because I don't make enough or something? Will be eligible for financial aid?</p>
<p>I ask because last year, I made about $86,000 and I was eligible for $9500 in federal direct subsidized and unsubsidized.</p>
<p>This year however, I will be making less, claiming an extra dependent, and all three of us will be going to school. I'm afraid we won't be eligible to get a big enough loan to satisfy our tuition requirements.</p>
<p>Federal loans are not based on income. As long as you fill out fafsa and your aid does not exceed your COA and you have not reached the federal loan limit you can receive them.</p>
<p>Well there probably are a few other stipulations like you can’t have a drug conviction etc.</p>
<p>I just spoke to FAFSA’s Help Line. I was told that I can definitely add her as one of my dependents so long as I provide for 50% of her living costs, however, on her FAFSA, she will have to list my mother’s information on it. </p>
<p>When you say you estimate your federal taxes to be $9,500 on $60,000 of income - that sounds high with three exemptions even if you don’t itemize. Is your $9,500 federal income taxes only? Or did you include FICA? Or is your wife collecting unemployment income?</p>
<p>on my W4 I believe I claim Single, and 0 dependents. I used to get hit big time in April when I was single so I opted to deduct more taxes per paycheck so I get a refund instead of owing when tax time comes.</p>
<p>SS should be about $2500 and State Tax should be about another $3200</p>
<p>Claiming your sister as a dependent is not likely to help her much since the support you give will have to be reported on her FAFSA, on top of whatever the parent who makes the most money earns, and his/her financials. I remember a case of that sort that was really messy. She would have been better off had she not been declared a dependent by her brother with his financial support not put into the picture, since the mom’s financial made her PELL eligible. Do check out these things.</p>
<p>Though your EFC and your wifes’ would be slightly smaller due to a dependent, it doesn’t look like it is something that is going to make a bit of difference for you, as you are not Pell eligible, nor have you mentioned aid possibilities from your college. You are entitled to the $9500 Stafford regardless of need. Adding your sister as a dependent does nothing for you. </p>
<p>Do the numbers and see if it means less money for your sister with this change.</p>
<p>I went to the EFC calculator on the finaid website and adding a dependent that goes to college would bring my efc to like 2500 or so. $1700 in Pell would be available for each student…except of course my sister because she has to put my mother’s financial info(she makes more than me).</p>
<p>In the calculator I put down 3 members in the household and 3 students going to college (wife, sister, and I).</p>
<p>ah…and I noticed another problem…i overlooked that amount of tax paid is not the same as amount of tax withheld! my mistake…you are correct…9500 is definitely too high…hence my anticipation of a refund.</p>
<p>If your wife is going to grad school, she will not be eligible for the Pell grant. It is only for undergrad students that do not already have a bachelors degree. Students in grad school or who already have a bachelors degree are not eligible.</p>
<p>I believe PELL is only for undergrad students. You said that your wife is going to do post-grad work so I don’t think she can count on a PELL grant.</p>