I need some advice regarding my FAFSA financial aid for 2017-18. So here’s the situation: at the start of 2016, my mother left her job and has been out of work since (I don’t think she’s plans on working anyone), and for the 2017-18 FAFSA I used our 2015 taxes, which showed both of my parents as employed. I discussed this with my financial aid office, and they directed me to a form to fill out in May (it come out 3 days ago) to show income reduction. Now here’s the issue, although my mother was unemployed for nearly all of 2016, she did take out a significant amount of money from her 401k to help finally pay off the house. This resulted in my parents 2016 taxes showing an income larger than the one from 2015. Basically, I’m worried that if I report my mother’s loss of employment and at the same time show an increase in our overall income, I’ll end up losing a portion of my financial aid, instead of getting what reflects my situation for the last year and going forward. I’m my mind, I either be content with what I’m being given now and deal with poor financial aid next year (2018-19), or possibly risk getting poor financial aid from fafsa for the next 2 years (since the 2017-18 fafsa will use the 2016 taxes) for a better financial situation in 2017-18. I have no idea which option is better and don’t know how to proceed. Any advice would be greatly appreciated!
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The 2017-2018 FAFSA uses 2015 taxes.
I don’t know that you have any options, other than to file FAFSA with accurate information and explain the circumstances on the extra form as truthfully and completely as you can. The school will then make a determination.
You have to HONESTLY report income on the financial aid forms. If there is income…you have to report it.
You do know that your 2016 income will be used for the 2018-2019 financial aid forms, right? And that income is high too.
The income that was used to pay off the mortgage is still income. That money could have been used for your education. Paying off debt is a choice and won’t be considered an emergency expense that should be taking into account in determining your need.