Financial aid and state pensions

Parents Forum
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<p>My husband retired with a NYS pension and I work as a sales rep. I was wondering as we prepare for our oldest to attend college in two years whether colleges can look at state pensions as income. I was told that they don't - they only look at other incomes within the household. Can anyone tell me if this is true? I am wondering as this could make a difference as to how much, if any, financial aid we will be eligible for. Thanks for any help!!</p>

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<p>They’ll count it. If money even walks by your house, they’ll count that, too. ;)</p>

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<p>Agree, if it appears on your taxes you can be sure it will be asked for on FA forms as well. And some things that aren’t taxed are asked too, eg. untaxed SS benefits, pretax deposits into retirement funds, pretax money going to health savings accounts.</p>

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<p>Yes, it does…my husband retired and has a pension and is working, all appear and are figured in the equasion.</p>

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<p>^ SS benefits of any type are not reportable for FAFSA purposes (beginning with 09/10, I think). Not sure what Profile does with them.</p>

<p>OP, colleges use FAFSA for evaluating a family’s situation (FAFSA produces the EFC) and their eligibility for federal aid, including student loans. FAFSA does require reporting of most types of untaxed income, but there is also a parental income protection allowance (as well as an asset protection allowance based on the age of the older parent). Around 300 or so colleges also use CSS Profile to come up with their own EFC for institutional funding and, within that group, the information they use, and the way they use it, varies. Some FAFSA-only schools also require a separate institutional app for financial aid. So, while no one can really give you a blanket statement that all schools will treat your DH’s pension income exactly the same, it’s safe to assume that it will be a factor in determining your EFC.</p>

<p>It may be, since NYS has a tax adjustment for their pensioners, that HESC offsets a portion of their pension when you apply for TAP - I don’t know, just speculating! I vaguely remember some questions about NY pension income on the TAP application, which basically transfers info from FAFSA and then tailors it for HESC purposes, similar to the way tax software works.</p>

<p>Probably the best thing you can do right now is to estimate your EFC, for both FAFSA and Profile, and decide how much you and your H are willing to commit to your student’s college expenses each year (through savings, income, and possibly loans). Then help him to formulate a college list that includes some schools that you know will be affordable, or where he is likely to garner signifcant merit aid. Here are some links that will help you figure out the process-</p>

<p>FAFSA Instructions (10/11):
[Completing</a> the FAFSA: Financial Aid from the U.S. Department of Education](<a href=“http://studentaid.ed.gov/students/publications/completing_fafsa/index.html]Completing”>http://studentaid.ed.gov/students/publications/completing_fafsa/index.html)</p>

<p>For understanding FAFSA Expected Family Contribution calculations (use A tables):
<a href=“http://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf&lt;/a&gt;&lt;/p&gt;

<p>NYS HESC (TAP questions/estimates):
[Apply</a> for TAP Now](<a href=“http://www.hesc.com/content.nsf/SFC/3/Apply_for_TAP_Now]Apply”>http://www.hesc.com/content.nsf/SFC/3/Apply_for_TAP_Now)</p>

<p>Profile Schools & Guide to Profile:
<a href=“https://profileonline.collegeboard.com/prf/index.jsp[/url]”>https://profileonline.collegeboard.com/prf/index.jsp&lt;/a&gt;&lt;/p&gt;

<p>College Board’s EFC Calculator (FAFSA or Profile):
[EFC</a> Calculator: How Much Money for College Will You Be Expected to Contribute?](<a href=“http://apps.collegeboard.com/fincalc/efc_welcome.jsp]EFC”>http://apps.collegeboard.com/fincalc/efc_welcome.jsp)</p>

<p>The book, “Paying For College Without Going Broke”, which is updated annually is likely available from your library or amazon and is also a good source for ideas/info.</p>

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<p>Sorry, I should have stated that SS benefits are included only in the Profile: PI-165A: Enter the untaxed social security benefits your parents received or expect to receive for all family members except you, the student. I think FAFSA hasn’t included untaxed SS for the past two years.</p>