Check out the “Simplified Needs Test and Auto-Zero EFC”. I believe that you need to be eligible to file an 1040A which in your case is unlikely because of the business but it worth looking checking.
Go to the link in this post.
It looks like if qualified for free or reduced lunch in 2013 or 2014 and parents’ AGI is under $49999, then qualify for simplified needs test (and assets are ignored).
Thank you guys, this is very helpful. I am checking it all out and will be back after I read…
Red poodles…what was your incime in 2014? The dislocated worker thing really only benefits you if the income is very low. You need to include the severance income as well as any earned income.
I am back! Thank you so much twoinanddone, Madison85 and noname87. Although H is a dislocated worker, I don’t think we qualify for the Simplified Needs Test, nor should we, for 2014. He did get severance and unemployment and we will just have to pay our fair share. However, this explanation of how it all works has really made me feel better, especially as I have two more coming up the pipeline, so if 2015 turns out to be a truly terrible year for us financially (as I am predicting it will be), at least my younger kids will not be totally screwed.
I need to find a job. Do you think I could get a job in the Tufts admissions office? LOL
@thumper I’m not comfortable saying exactly however it was over the 49,999. But next year’s income will VERY likely be much lower than that, so I am very grateful for this information. The year after that, who knows…hopefully, we will be bajillionaires. Or broke. Not sure. Now… Where is that help wanted section???
Right, so maybe for 2015 your AGI will be under $49999.
If you have very low income and can demonstrate this, you could ask for a special circumstances consideration. These are reviewed on a case by case basis. Some college don’t do them at all.
You would have to show documentation that your 2015 income (which is what you will be using to pay for college) is significantly lower than 2014…which is what the schools will use to calculate your need based aid.
This might be worth considering if your income(s) don’t increase, and you continue to use savings to pay bills, etc.
It’s not a guaranteed thing…but might be worthy of,some thought…especially if you end up qualifying this year for a means tested benefit like reduced lunch or SNAP.
OMG I just realized why the numbers are so different by reading your post, thumper1. The NPC’s ask you to predict what your 2015 income will be. Feeling optimistic, I put $50K. The FAFSA4caster does not ask anything about predicted 2015 income, it goes by your 2014 income. That’s probably why the end result numbers are so different.
But all in all, all of the NPC calculators I ran agreed with each other. Which is why I trusted them enough to let my D apply ED2 to Tufts.
Blech.
Keep in mind the Simplified Needs Test requires that you file or eligible to file an 1040A or 1040EZ. If you tax situation requires a 1040, I believe you will not meet the Simplified Needs Test. Selling one share of stock or mutual fund could require an 1040 return. Also some states will require asset information for state grants.
http://ifap.ed.gov/efcformulaguide/attachments/090214EFCFormulaGuide1516.pdf
Noname87…please read this link. Your post isn’t accurate.
The criteria for simplified needs test is in this link, as well as auto zero.
The tax form is one of several options…not the only one. That…plus income threshold.
Are you in Massachusetts? Did you run the NPC for Clark University with actual 2014 income?
@mommdc yes, and yes, but it confuses me. my D got the traina scholarship so I’m not sure how that affects it, but they put 23K of pell and fed/st/inst grants in there and had her take a $9,500 loan and on top of that left a $17K gap. Which I’m guessing could be covered by her scholarship? Or would the scholarship cancel out the grants and we’d still have the loans and gap? I’m so confused!
Clark was an academic safety and we hoped it would be a financial safety as well, but she didn’t make the first round of the LEEP scholarship, so now it’s back to an academic safety–unless that scholarship cancels out the gap? I don’t know!!!
Please clarify…$23,000 of Pell and federal grants? What are those federal grants besides the $5730 maximum Pell?
Pell max, and the other line says Federal/State/Institutional. I was typing fast but I fixed it. I think it must be wrong b/c according to the FAFSA we don’t qualify for Pell grant at the moment.
I think I am going to just have to wait and see what pans out! Do you think the scholarship $$ just takes the place of the grants? That’s what I’m guessing. So, Clark probably ends up being more expensive than UMass.
Yep, our income qualified us for the simplified needs test, but our situation didn’t.
Still, one year we were able to use it.
But every year, we filed both FAFSA and PROFILE, and every year we were verified.
Red- call Clark’s finaid office to clarify. Don’t assume.
Yes, check with Clark FA office and maybe you’ll just have to wait and see, but for us the npc for Clark gave surprisingly good numbers.
I hope it does work out for you. I am a bit leery that you qualify for a max PELL which means an EFC of zero when the actual FAFSA EFC is not coming out zero. Possible that the fin aid officer will override the FAFSA calculator with whatever Professional Judgement permitted, but I would not be so comfortable with that. Be aware that all of the awards are estimates only until the college is done with whatever verification process they use. You are keeping options open which is very good.