our D who is a senior in HS is now sending out college apps (small private liberal arts colleges outside of our home state) for the 2016 year. There’s a possibility that my income will fall by the end of 2015 by 20% because of a change in employment. How does this affect the aid package colleges will be presenting since our FAFSA will be based on 2015 income and what steps should we be taking to get the best aid based on how it all plays out?
Thanks for any info.
Fafsa does base it on the prior years earnings. You have to fill out the information asked. If you have a change of circumstances after you file fafsa, you can file an appeal. Most schools will have you submit documents showing why the change in earnings, voluntary or not. Often it makes little difference for fafsa schools as a change from $100 in income to $75k rarely yields extra federal aid.
For css profile, there may be a place on the application to note it, but rarely will a school consider something happening in the future, so if you write that your income will fall in January 2016, they won’t adjust until the event happens.
And to add to that…the in me from 2015 will be used for the 2016-2017 school year and the 2017-2018 school year.
I’m sure you aren’t the only one with a difference in income.
It will be interesting to see how colleges handle this.