My parents’ total income for the 2014 tax year was $200,000+, but my mom quit her job in early 2015 and that number has since more than halved (total household income now just shy of $100,000). She’s now trying to start her own business, which already requires a decent investment, and that alone has caused a lot of strain on my family’s finances.
I know that when applying for financial aid I have to report my family’s earnings from the most recent tax year, but that $200,000 gross income is not at all reflective of our current/future financial state. Is there any way I can tell colleges about how drastically our financial situation has changed and get more financial aid? If so, should it be before or after I apply for aid/submit my application? (entering college Fall 2016)
I have endless questions - please help!
You need to file the FAFSA and CSS with the information asked for. You can then file an appeal with an individual school explaining why the income in reduced. The schools will ask for documentation supporting the change - a termination letter from a job, current pay stubs, current assets.
What are you expecting? On FAFSA, it is unlikely you’ll see much more federal aid for an income of $100k than one of $200k. On a CSS, it’s up to the school.
The CSS might have a section asking about special circumstances you may want to report, but I’m not sure. I think I remember seeing that. Others might know…anyone?
If you get their W2 forms for 2015 by the January deadline, you can file the 2015 earnings. As above poster said, you can also explain the decrease in income under the special circumstances section.
I wouldn’t count on a school being sympathetic when the parent QUITS their job to start a new business. that is a choice.
They tend to sympathize with lay-offs.
^^^probably true, tho I can imagine reasons why a person would do this, for the right opportunity/promise of a more lucrative future once those startup dues are paid/was being forced out internally/etc. Kid might have simplified the circumstances or may not know all the details.
But, yeah, quitting 100k job to start a business just as kid is starting college might not gain a lot of sympathy from colleges with limited aid to distribute.
You are entering college in the Fall of 2016, so you will submit your FAFSA after Jan 1 of 2016 using your 2015 family income. For CSS profile, you are going to estimate your family household income in 2015 also. I don’t see how your 2014 family income affect you. Nevertheless, having a family business always complicate the aid calculation and you cannot really trust the NPC numbers.