<p>I've filled out the FAFSA form just before my college's preferred deadline, which was March 15. I used my parents' last year's tax 1040 form. I received the initial award letter stating my approximate amount of aid. I got really excited because my financial aid from the state and the government was great. Unfortunately, when I finally got my got my hands on the actual 2009 1040 form, some of the data was way off. Due to the bad economy, my dad has laid of a few workers from his business and his income was reduced ( you would think, good, less income = more grants) that was not the case. His income now fell into the the "nontaxable income" bracket so our family did not have to pay income tax, only the business tax which the federal and state government do not care when it comes to student financial aid stuff. So now, I will probably need to come up with an additional 10 grand on top of my total financial aid package ( which includes loans from the government). Lastly, I will also need like 3 grand a year of spending and book money. So figures, at the end of my 4 year engineering studies, my debt would be 60 grand. Do you think I should have gone to a community college for 2 years first and then transfer to a 4 year college? What can I do? Should I get loans from private banks? ahhh</p>
<p>I believe some provision is there for displaced workers and your father may fall into that category. Call the financial aid office and talk to them about that.</p>
<p>I had to send them the copies of our tax returns. I should call them, but I doubt they can guarantee anything. I hate how you can’t really tell what the exact cost of attendance before enrolling.</p>
<p>Did you ask about provisions for displaced workers? They need to clearly know that you fit in that category.</p>
<p>As for the $3k for books and spending money…that’s what part-time jobs are for. </p>
<p>I hope the other stuff works out for you, but do not borrow money for “spending money”…earn that money. Work this summer and work a few hours a week during the school year.</p>
<p>In case my situation holds true, I am now really trying to get a few jobs this summer and make at least 3k. Willing to work as much as I can, don’t care about social life or anything else. I already applied for like 6 jobs.</p>
<p>Matase, I’m completely mystified by your post. It sounds as if your dad’s AGI was lower than estimated for 2009 but your EFC went up…which doesn’t make sense unless there was an increase in asset values that you’re not mentioning. The school requested copies of his tax returns, I’m assuming for verification purposes, but did they make a change to your EFC? What is the EFC currently on your SAR and is this a FAFSA-only school?</p>
<p>02166 EFC. The EFC got increased because we did not pay income tax this year, but I had a value of like 3k(from a 2008 return) on the initial fafsa filing. As I am looking at the 1040 form, we have a lot of itemized deductions from the business and a lot of tax exemptions. That way, the taxable income is insignificant.</p>
<p>I see, so you went from a 0 EFC to 2166 and that changed your FA award by $10K? Other than the Pell adjustment, was the rest lost in institutional funding or did you have a gap in the initial award as well? It might be helpful if you just list your COA and current FA award and we might be able to give you some input on what your options are and the trade-offs. </p>
<p>It does not sound like your dad is a displaced worker, btw…he is the business owner and the business still exists, correct?</p>
<p>COA: roughly 25 grand, includes dorm, tuition and fees. State U.</p>
<p>FEDERAL PELL GRANT<br>
$ 3,900<br>
ACADEMIC COMPETITIVENESS GRANT<br>
$ 750<br>
ESTIMATED NJ TAG ***<br>
$ 6,782<br>
FEDERAL PERKINS LOAN<br>
$ 1,000<br>
FEDERAL WORK STUDY PROGRAM<br>
$ 2,000<br>
FEDERAL DIRECT LOAN-SUBSIDIZED<br>
$ 3,500<br>
FEDERAL DIRECT LOAN-UNSUBSIDIZED<br>
$ 2,000<br>
_____________
TOTAL<br>
$ 19,932</p>
<p>I don’t see how you figure that your debt will be 60K after four years. This looks like 6500$ in loans for freshman year. As the loan amounts increase, maybe it might look like:</p>
<p>freshman year – 6500
soph year – 7500
junior – 8500
senior --8500</p>
<p>Which is, roughly, 31K. This is significant but not horrible. You could take your Pell Grant and NJ grant to a community college, at least for freshman year, and take transferable courses for much less money. That right there could reduce the loan debt by 6500. </p>
<p>However,y our family’s financial picture may change next year and hopefully improve.</p>
<p>Good luck! You are smart to be concerned about this matter!</p>
<p>Mom4, I think matase is adding the existing loans and the gap between the FA package and COA to estimate the $60K. I agree that amount is overstated though:)</p>
<p>Matase, the reason I suggested you post the COA components is because most colleges have rather inflated COA’s. For example, if there’s $900 in transportation, $1,000 in books, etc. you really won’t need that much if you’re instate and can live with used/rented texts. Personal expenses are well within your control too and, at many schools, room and board charges vary by the choices you make. What do the acutal billable expenses (tuition, room, board, fees) total?</p>
<p>no guys, that was only my initial offer, I did not receive another award estimate after the correction from university. My SAR says I am eligible to receive up to $3400 federal pell grant. Not sure how much is my state gonna give me now. But anyway I think around 60k is a fairly accurate estimate for 4 year program. Hypothetically, if my total financial aid package is 15 grand, which of that, 6 grand would be government loans. I would need like 10 thousand to match the cost of attendance. So, 16k in loans * 4 years = 64 grand.</p>
<p>The letter that I got from my college says that the cost of attendance during 2010-11 year will be around 25k.</p>
<p>Matase, the award you posted above is based on your 2166 EFC (I can tell by the amount of the Pell grant) so unless you’re expecting your EFC to change again, I’m not sure what the problem is or why you think your state funding may change. My point on the loans being overstated is that students don’t actually pay the full COA. They pay only the billable portions (tuition, fees, R&B) and the rest are variable expenses which are often paid out of pocket through earnings. Even R&B may be overstated in their COA, as they are at my D’s (public) school. Sharpen your pencil and see what you’re likely to actually need before you make any other decisions on private loans as you may find a significant difference between COA and actual! </p>
<p>Btw, are you parents planning to help you at all with your college expenses? They should probably look at interest-free monthly payments through the school or Plus loans to make up the difference before co-signing for private student loans.</p>
<p>To the OP…when you did your FAFSA filing, it sounds like you had not yet completed your 2009 taxes and were using estimates. When did you go and amend your FAFSA to reflect the accurate numbers from your tax return? </p>
<p>The reality is that until you have completed your taxes and amended your FAFSA to reflect these numbers AND changed your FAFSA filing status to “taxes completed”…any financial aid award would have been an ESTIMATED award. Most schools do not finalize their awards until AFTER the FAFSA has been amended to reflect the accurate numbers from the tax return.</p>
<p>AND further…if your numbers don’t match what is on the tax forms, the schools have the right to adjust your FAFSA AND to adjust your aid accordingly.</p>
<p>Swimcats hopefully will post…sometimes with the self employed business owner, things are as clear as mud. By paying NO taxes, you then had MORE money available to your family (I know…sounds ridiculous).</p>
<p>I’m not sure that this family would be eligible for displaced worker status. The business has lost money…but is not defunct…just a lot less.</p>
<p>OP…if you can provide sufficient documentation to your college about this business loss and therefore significant reduction to your family’s income, the college MIGHT consider this. BUT get everything…EVERYTHING that will verify the changes in your financial situation. The school will want to see it ALL. Contact the finaid office and ask them what to do.</p>
<p>You’re also assuming that your dad’s financial issues aren’t going to get any better. If his business does better, then your EFC will change back again.</p>
<p>However, you also need to talk to your dad. It sounds like he’s getting a good-sized tax return for tax payments that weren’t needed. So, perhaps some of that money can be put towards your education.</p>
<p>I have talked to the financial department. They said I will get up top $3400 Pell, and about $4000 NJ Tag. The government loan amount will probably stay the same. So yeah, to fill in the gap I will need a good amount of my own money.</p>
<p>What are the actual, billable expenses for this school (tuition, fees, room/board, health ins if required)?</p>