Financial Aid Predicament

<p>Hello,
Fall 2008 will be the first time that any of my siblings will have attended college. Both me and my twin brother will be freshman in Fall of '08. Financial aid will definitely influence my decision as to where I will attend. My dad is the only one that works, and my mom has stayed at home. Over this last year, he made more money than ever he has before, but recently decided to chance jobs. $10,000 of this was a bonus that was applied directly to the debt from our new house. He took a significant pay cut to change jobs. My question is, what will this do to our financial aid situation? We realize that the EFC for this year will be higher, but what about subsequent years? It is our impression that schools base subsequent financial aid packages on the freshman year. Would there be any way to guarantee that we wouldn't be screwed when it comes to financial aid for sophomore year and beyond? As of now, our EFC should be around $10,000 per student this year. This should go down by at least a few thousand per student for next year. Right now, my number one school is The University of Michigan. Is there any way that they would work with us? Any helpful input would be greatly appreciated.</p>

<p>You financial aid will be adjusted for increases/decreases in income in subsequent years. You file a FAFSA/CSS every year so that they can re-evaluate.</p>

<p>While your financial aid for the 2008-2009 school year will be based on your 2007 income, your dad can explain the FA office that the $10,000 her received was a one time event.</p>

<p>tphssenior is correct that your EFC next year will go down based on your decreased income. Since Michigan uses the css profile you can run your number through the FA calculator on the college board websites or any of the others mentioned on the threads about FA calculators over the passt few days (use the instiutional methodology) to get an idea as to what your EFC will be.</p>

<p>The EFC will go down, but does that mean that the college will necessarily change the financial aid package? My dad is just worried that this year will set a precedent for every year of school. No one says that the college is required to supply a student with more aid.</p>

<p>If Michigan uses the CSS profile you are in a good position because there is that little box that you can write in where you can explain just about anything you want as far as your financial situation. For example, we filled out the CSS using our 2006 tax info but my DH was involved in a motorcycle accident in June and was unable to work for several months, and still is only allowed to work part time. Since he is self-employed obviously our income took a huge hit. I used that box to explain the situation.</p>

<p>I hope this works out for you, and go and thank your mom for being a stay at home mom for you all of these years and thank your dad for working hard enough so that she could.</p>

<p>You may just want to drop a dime to the Michigan financial aid office and ask. And your twin can call his top choice and pose the same question. Most schools will work with you. Are you in state for Michigan? That may make a difference; state schools tend to be a little bit constrained with how much FA they can give to out of staters.</p>

<p>Most schools want you to stay in college once you're there; helps their retention rate, and after all they are in the education business. Most will work with you to make sure you can (even if the FA is by way of loans).</p>

<p>Yeah, we live in Michigan.</p>