<p>My FAFSA EFC is about 9k but Wisconsin changed it to 63k because, due to extenuating circumstances, my mother (who is unemployed and divorced) had to take money out of her 401k this year, although not NEARLY that much. We wrote to Wisconsin and they refused to give us more money--right now they are offering 5k in loans. All my mom can contribute is about 10k (and she can't sign/help take out loans because her credit is awful) which still leaves a 10k gap and my dad is not willing at all to help pay for my education. I have no idea what to do... in the letter the financial aid office even said 'we understand it may be hard for ___ to attend the university next year'. Any ideas would be appreciated!</p>
<p>???</p>
<p>Are you saying that your mom took out less than $63k out of her 401k, and now your EFC is $63k?</p>
<p>Your EFC was $9k, which suggests an income of about $70k. The problem sounds like she took out a big amount from her 401k, that increased her income…AND, she had that money in a regular savings acct. If so, that would cause a big increase…however, that increase still sounds like too much.</p>
<p>Does that sound right?</p>
<p>Frankly, I think the problem either way is that her income is too high for federal grants. I don’t know what the income limits are for state aid in your state…but they may be too high for aid anyway.</p>
<p>Does your school promise to meet need? If not, then having an EFC of 9k is probably not going to result in free money anyway.</p>
<p>Are you an incoming frosh? If not, what aid did you get last year?</p>
<p>Can you defer for a year? I’m not 100% sure what the situation is, but it sounds like your Mom’s “income” looked unrealistically high for 2010 because of the 401K withdrawal. Also if that money was still in the bank when you filed the FAFSA, that would have also increased your EFC. If you mom won’t have to do the same again next year, you might be a lot better off waiting and applying for finaid again next year. Sorry, I’m sure that’s not what you wanted to hear. But perhaps you can find a way to make lemonade here and come up with a great gap year opportunity!</p>
<p>Good luck!</p>
<p>Did your Mom not report the withdrawal on FAFSA? She has to do that, so the school has to change her information to make it accurate.</p>
<p>If she did not withdraw that much it is odd that the EFC would increase so much. Unless perhaps you were eligible for simplified needs (which ignores assets) before the adjustment and now are not eligible. But your Mom would have to have substantial assets to increase the EFC that much.</p>
<p>@mom2collegekids
Sort’ve, I’m sorry if it wasn’t clear but my mom took out less than 63k and our EFC is 9k, the university I’m attending, however, changed our EFC to 63k. Currently, my mom has no income other than about 1k a month in child support and no other savings account than the 401k. I suppose their rationale was that since we don’t qualify for the Pell grant than they can’t give us any other form of aid, especially since they don’t promise to meet ‘full need’.</p>
<p>@mathmomvt
Thanks for the advice! I really hope to avoid a gap year, I know my grandparents are willing to help out a little over all four years so maybe I can convince them instead to help this year and then hopefully we can figure out something next year. I know my mom already had to withdraw out of her 401k again but it was a small amount so hopefully next year will be better. </p>
<p>This financial aid process has been so frustrating! Especially since I decided to attend my state university instead of going to my first choice which would’ve (after Madison didn’t raise our aid at all) costed the same!</p>
<p>I agree that deferring enrollment may help…but that may just delay the inevitable. </p>
<p>What kind of aid would a EFC 9k get anyway at UWisc-M? It sounds like the family thought that all they would have to pay is EFC, and that’s not usually the case at most schools.</p>
<p>That said, delaying a year would give the family time to prepare for paying.</p>
<p>*Especially since I decided to attend my state university instead of going to my first choice which would’ve (after Madison didn’t raise our aid at all) costed the same! *</p>
<p>???</p>
<p>How do you know that? Were you given a FA package with grants and then it was taken away? If so, what was in the FA package from UWisc??</p>
<p>@swimcatsmom
Yes she did report it on the FAFSA and that’s why our EFC is 9k instead of lower (I think). And my mom doesn’t have assets which is why we are so perplexed by the school’s decision.</p>
<p>You need to ask them to show you exactly why they increased your EFC. It does not make any sense whatsoever.</p>
<p>Well we knew that we we were probably going to have to pay more than our EFC, but 10k more is out of reach unless my mom withdraws again from the 401k (which would just be kind’ve a vicious cycle) or I take out loans. If I deferred enrollment, I suppose I could work full-time for a year and try to make the difference but I have been so depressed this last year-I need a change! At this point its somewhat out of my control I suppose.</p>
<p>Yeah they still gave us 5k in loans though which is even more perplexing! We’re going to call tomorrow though and hopefully figure out what the thought process was behind the decision.</p>
<p>Everyone can get 5.5k in Federal loans.</p>
<p>I agree with swimcatsmom – get as much detail as possible as to how your new EFC was computed. It doesn’t seem to make sense that it could go up to 63K if your mom doesn’t have other assets.</p>