<p>I'm in kind of a unique situation with the financial aid forms.</p>
<p>My parents both retired recently - one around August of '05 and one around March of '06. They now receive a much reduced retirement income which would doubtlessly have a very reduced effect on the newly calculated EFC, which is good.</p>
<p>However, as I understand it, the FAFSA and CSS forms use the tax info from the previous year though, which would still show them as being employed and earning a higher salary even though neither of them currently are.</p>
<p>If I was to submit my applications to colleges by the 1/1/07 deadline, would I have to submit my parents' 2005 income information for the FAFSA/CSS? Or could I get by with submitting their 2006 income data for the FAFSA/CSS, or even better: 2007 projected income figures reflecting the fact that they are both retired now? Is it even possible to do that?</p>
<p>If you are doing FAFSA/CSS for the 2007-2008 academic year then you should use your 2006 tax forms or estimate your 2006 income if the forms are unavailable. Most likely your financial aid forms will not be all due 1/1/07 since the FAFSA 2007 form you'll need will probably only be available starting 1/1/07. I think you can do the CSS form earlier though and I think you are supposed to use estimated income figures for 2006 (might want to check that). </p>
<p>I had a similar situation to yours in that my parents' job situations changed dramatically after filing FAFSA/CSS with the previous year's tax forms. In the end, I talked to my financial aid counselor and was given an estimated income form to fill and the issue was resolved. So if all fails (which it shouldn't) you can always talk directly with the university. Hope that helps.</p>
<p>For students entering college in Fall 2007, the tax year reported on their finaid applications is for 2006 tax year. Also, on there, you will be indicating your parent's job status...retired. Do keep an eye out for deadlines, especially priority finaid deadlines for EA/ED and rolling admits. Some of those requiring the Profile actually have priority deadlines in November of your senior year in high school. If so, you will use estimates for the full 2006 tax year to complete the forms...based on the information you have. Re: the FAFSA...you will be able to submit it on January 1 of your senior year in high school and again you will use estimates based on your last bank statements, pay stubs, retirement checks, etc for the 2006 tax year. Your FAFSA filing status will be "will file" meaning you will file your taxes but have not yet done so. You should complete your 2006 taxes as soon as possible....the year you are initially applying for finaid is NOT the year to file on April 15. Many schools will give you an estimated package based on your estimates. Some will not. But all will not finalize your finaid award until you have filed your taxes, and amended your FAFSA to reflect the numbers on your tax return. And lastly...please remember that just because you have a lower EFC you may not get an increased financial aid award (depends on the school's financial aid policy...full need met or not) and you still may get loans as part of your package. I applaud you for looking into this NOW. This is definitely the time to look into the financial implications of college, etc.</p>
<p>In any case, it sounds like i'll be able to use the '06 income data for this coming year, which is extremely good news.</p>
<p>The only thing that's still a slight concern is the three months at the beginning of '06 when my mother was still working. I imagine i'll need to include that on the FAFSA/CSS forms for '07 regardless of the fact that she retired immediately afterwards?</p>
<p>The three months shouldn't have too big of an impact on the total family income for the year, but it might be enough to push it over the 'line' for full aid in certain colleges. Do you think that the average college would give any leighway on that, seeing as how the three months could be considered a one time addition to income due to her being retired now? It's really not that importan, but i'm curious as to what your thoughts might be on it.</p>