<p>My son had his financial aid pkg offered and accepted. We filed fafsa before taxes were filed, after we filed we went in and corrected with the tax info. He is now being told that after review his pell grant was cut in half, also lost about 3,000 in grants, all this with an EFC of $590. I dont see how this could be possible. Have a meeting with financial aid next week, but I am sooo upset. This is not a private college but I really feel they did not go by the federal method. Am waiting on the supposed corrections they submitted to fafsa to see what in the world they did. Has anyone else experienced this? Our income is under $30,000, with the majority of income being social security, family of 4, 2 in college. This makes no sense to me at how they could have taken away so much with so little family income.</p>
<p>That does sound odd. The Pell is completely EFC driven so with an EFC of 590 (assuming the EFC is the one after you made corrections) the Pell should be @ $4181. </p>
<p>One possibility - is part of the social security income in the student's name? If so that can have a higher impact on the EFC as 50% any income in the student's name over $3080 goes to the EFC. Our FAFSA was adjusted by the school because we had listed my daughter's SS income under parent income which I thought the FAFSA instructions said. If they have submitted changes to FAFSA and they have been processed you can go to the FAFSA web site and access the most recent FAFSA and see what they have changed.</p>
<p>If SS income in the student's name is the problem and that income is going away because of the student reaching 18 then you can request a special circumstances adjustment.</p>
<p>Checked the FAFSA website and the changes they made aren't showing up yet. School said they made the changes yesterday so probably won't be until Tuesday or Wednesday. None of the SS is in my son's name so this is really hard to figure out. I can't wait to see what they did. Makes me feel like I should have just waited to see if they would ask for tax info instead of correcting b/c right after is when they wanted documents.</p>
<p>If there is any self employment income they could add back the depreciation, home office expense, etc.</p>
<p>Can they not tell you what adjustments they made and why without making you wait for the corrections ot be posted?</p>
<p>I asked and they did tell me one of the things they changed was the tax amount paid, telling me what was on the FAFSA was incorrect because I am self employed. Also changed the question of whether or not we could have filed a 1040EZ. Fin aide counselor said if there is any self employment, a 1040has to be filed because it is considered a business, didnt know that. They wouldnt give me any figures over the phone, just basically what they changed but no specifics. </p>
<p>Somemom are you saying the self employment income could possibly help in what they are calculating?</p>
<p>Jazzie that is a nightmare, especially considering the amounts of money here. I am not sure of the answer but please post back the results of your meeting with the financial aid people. There are ALWAYS options. Everything is going to be o.k...</p>
<p>If you look at your 1040, you had to include your self-employment income on line 12. The 1040A and 1040EZ are designed for those who have simple tax info without the additional schedules such as schedule C. There is no line on those forms to include self-employment income. </p>
<p>Off the top of my head I can think of a few things that could have made a difference in your EFC. </p>
<ol>
<li><p>If you had an AGI of under $30K AND you were able to file the 1040A, or EZ you would have qualified for the simplified means test. This means that any assets would be disregarded. WIthout the simplified means test any assets over the asset protection allowance would considered discretionary net worth, and would increase your EFC. Do you have any assets (other than primary residence?)</p></li>
<li><p>Because you are self-employed, the amount of your total federal tax liability (line 53) includes your self-employment tax (FICA). The FASFA takes the AGI and calculates the FICA. So basically, when you reported the amount of federal tax paid you should have subtracted out the amount that was your self-employment tax (line 58). To be perfectly honest, I would guess that most people would make this mistake, and until now was something I hadn't considered. </p></li>
<li><p>I hope you put the social security income on the correct line on the FASFA and didn't include it in "earned income" The FASFA calculates state tax and FICA on the earned income reported, and basically subtracts it out. You don't pay state and FICA on SSI</p></li>
</ol>
<p>To be honest, I can't really see how any of these things would represent such a major change in your financial aid, but maybe there are other things we are just not seeing. You said that the majority of your income is SSI, which means that your self-employment tax error should barely make a dent, and unless you have well over $50K in other assets not being eligible for the simplified means test would not have made much of a difference either.</p>
<p>Good luck.....</p>
<p>I don't think (but I'm not 100% sure) that a FASFA school will add back self-employment expenses such as depreciation, office expenses etc (profile schools definately do when they use their own formulas)</p>
<br>
<blockquote> <p>if there is any self employment, a 1040has to be filed because it is considered a business>></p> </blockquote>
<br>
<p>This is absolutely true. If you are self employed, there is no place on the 1040 Ez or 1040A to indicate that income. Where did you put that income when you filed your taxes?</p>
<p>As mentioned...the simplified needs test is out if you must file a 1040 tax return. This means that any assets (e.g. savings, etc) would be included in the calculations for your financial aid. With the simplified needs test, you would not have had to include your assets.</p>
<p>If you have been unable to access the changes on your FAFSA, then have you also not yet seen your revised EFC? Perhaps your EFC is no longer $590. You will need to check and see.</p>
<p>Do you have any assets (savings in particular) that might have had to be included in the mix now...and what about that self employed income?</p>
<p>If you are self-employed, you are not supposed ot put the self employement taxes paid (15%) in the federal taxes paid section (i did not check the line # but they specify a certain line for taxes paid and it does not include any SE tax info)- instead half of it is subtracted on the front page from your AGI and half of it is addressed through the formula tables like every one elses.</p>
<p>So, if you paid, for example $10,000 in self-employment tax and you entered that on your FAFSA as federal tax paid, they would be adding that amount back to your AGI- you accidentally double counted it. That could make a big difference.</p>
<p>I recall one of my Ds UCs wanted to review the schedule C and told me they could/would be adding back depreciation and home office deduction- this was years & years ago, so sorry I am not exact on who said what; I just recall that each school has their own policy about what can be added back in.</p>
<p>The above posts are correct, if you had qualified for a simplified EFC you might have assets above the protected amount that are now counted.</p>
<p>If you are up for it- check this link and do your own EFC, you can see exactly what counts and does not:</p>
<p>IFAP</a> - Information for Financial Aid Professionals</p>
<p>My self employment income was on the business income or loss line, I think line 12 on the 1040 form. We have no assets and Thumper1 you're right there probably is a revised EFC but with our income amounts and majority being SS, I cannot see how it can be that much. My self employment is only part time so I'm at a loss at what is going on. With the cuts they made in the financial aid, its like they've magically seen a lot of income. </p>
<p>Thanks so much for everyones suggestions and comments and I will definitely keep you posted when I'm able to see the corrections made by the school. Any more suggestions or thoughts, please feel free...Somemom thanks for that link, that will give me some idea as to what type of EFC the school might be looking at...</p>
<p>jazzie1, just make sure you take everything you can think of with you when you meet with the f/a person (all documents you would have used to complete your FAFSA). It will be easier for you to have things there, just in case. Don't worry. F/A people are not out to get you! They have federal guidelines that must be followed, and they have no choice. It is possible that they are interpreting your situation incorrectly, which is why having documents with you to show your situation is a good idea. Off the top of my head, I can't imagine why you wouldn't be Pell eligible ... but that's only my gut instinct. Individuals situations vary, so there is no way to know without seeing all the info. Relax for now. I have my fingers crossed that it will work out well for you! :)</p>
<p>Jazzie, Please do let us know. With no assets (you don't own a home and you don't have significant savings)...it will be interesting to hear what the school adjusted on your FAFSA. Please...let us know what that is. It could help someone else in the future. Hopefully, it's a "clerical error" of some kind. There was a clerical error with my daughter last year. She received an email saying that she would not be receiving a chunk of her financial aid. Of course this came on a Friday. We both contacted financial aid, and by the time we got a hold of someone on Monday, DD had a corrected email saying that the first one was due to a clerical misentry. Whew. Hope the same happens to you.</p>
<p>Boy do I hope there is a clerical error somewhere!! I will let you all know when I find out and also how it goes when I meet with FA on Wednesday.</p>
<p>Ok...finally got a chance to look at the corrections made by the school and they have errors in the figures of mine and my husbands income big time!! I have no idea where in the world they even got those figures from! </p>
<p>I have an appointment to sit down with them on Wednesday, can't wait. I started to call but decided to wait fearing they would mess things up even worse. </p>
<p>I also called FAFSA today and was told by them that since I do not actually own a business but work for a company that hires home workers, I technically did not make business income. If that is the case, we WOULD have been eligible to file a 1040A or 1040EZ. </p>
<p>Oh yeah...with their errors, the EFC is now $2,036. This is a mess that hopefully we can get straightened out on Wednesday. </p>
<p>I am working now on trying to get some clarification in writing regarding that "business income" situation.....what a mess!!</p>
<p>Good luck. Let us know how it all works out.</p>
<p>While it's still a mess, jazzie, you are at least seeing some light at the end of your tunnel. I am willing to bet things will look better for you come Wednesday. (fingers crossed)</p>
<p>By the way, I am interviewing for a financial aid officer position at a state U Wednesday. Let's hope both of our visits to financial aid offices Wednesday bring good news!</p>
<p>I will be sure and let you all know how it turns out Wednesday. Good luck kelsmom on your interview!</p>
<p>Update...Wednesday's meeting with FA went so-so. They tried explaining the numbers they put in mine and my husbands income was due to the figures they had and basically was split with some being reported as income under hb (he receives disability and is retired due to his disability) and some under mine. FA officer explained that it was done this way to help keep the EFC low. (yea right) </p>
<p>Basically where we are now is they are reviewing everything again due to those incorrect figures and I also had a couple of medical bills that had been paid out of pocket which FA said would definitely help so the saga continues......I faxed receipts of where these medical bills were paid to FA so we will see. </p>
<p>Will let you all know how it ends up....I will be glad when this nightmare is over!! </p>
<p>I'm wondering if the medical bills will make THAT much of a difference, but any little bit will help.....</p>
<p>Thanks for the update.</p>
<p>We had an adjustment for high medical expenses last year. They do not reduce your EFC $ for $. They reduce the medical expenses a little first because the protected income allowance includes an amount for medical expenses (@ $2000 I think - long time ago). They go in and reduce your income on FAFSA by the remaining approved medical expenses. Then the numbers go through the formula again. As far as I recall we had @ $11k in medical expenses and @ $5000 in lost benefits (my daughter had been getting SS benefits because her Dad is retired and they were finishing) and the EFC went down by @ $2000. </p>
<p>Make sure you include every $ you have spent on medical. We included our co-pays, prescriptions, dental, even our (after tax) insurance costs. They will weed out what to allow or disallow. Here is a link to the finaid page that has info about special circumstances adjustments for medical expenses.
FinAid</a> | Professional Judgment | Medical and Dental Expenses</p>
<p>Good luck.</p>
<p>Thanks swimcatsmom for that link and the info!! I was wondering how that all worked. I am still compiling more things to give to the school hoping what we have in medical/dental expenses will help. We actually had quite a bit not covered by insurance so we will see. Thanks again for your post as I had completely forgotten about including prescriptions. </p>
<p>Oh and forgot to mention in my update that they upped our EFC to $2036. I asked the FA person how in the world did that make any sense to her looking at the AGI? </p>
<p>Will keep you posted on how it turns out in the end...</p>
<p>Thanks for everyone's words of encouragement and helpful info.... :)</p>