<p>This year my daughter has decided to apply to boarding school. I told her that the only way she would be able to go is with a almost full ride the amount that we could afford to pay is 10,000 dollars at most. The only problem is that I recently sold my bookstore and when I submit my taxes for the 2013 year the amount that I sold my bookstore will be on there. The amount was about 150,000 dollars. I do not have a job though and no other source of income. My partner and I also have 2 other children who we need to support. Do you think that my daughter has a chance at receiving financial aid?</p>
<p>You can fill out the PFS and see where it lands as far as estimates of FA for your family…I think that is probably your best indicator.</p>
<p>You will have an opportunity to explain the circumstances either to the PFS, TADS, and/or each school. If you don’t see where/when to do that, call the school’s FA department and ask about it. They will take into account a non-recurring lump sum and not assume you will be getting $150,000 every year, as long as you explain it.</p>
<p>However, they will also impute income if you are not working, unless you’re taking care of a preschool child or a child with specials needs, etc. And your partner’s income will be counted even if s/he is not your D’s bio parent. Family size has an effect too.</p>
<p>Different schools may calculate your need differently and factor in the sale proceeds however they see fit.</p>
<p>Your D potentially has prospects for FA but there’s no telling how it will shake down. Even people with very straightforward finances, myself included, get very different results from different schools. </p>
<p>So I would say go through with the process and see where the chips fall. Don’t get your hopes up too high but you might get a pleasant surprise. Do be aware that schools expect you to pretty much divert every potentially available penny to tuition.</p>
<p>Also, check with your accountant on how the 150K is reported. I would think it would not all, or even mostly, be actual income. You already owned the business, so the value would be there to be reported whether or not it was sold. Selling the business just converted one type of asset into another, and in many cases only the gain might be reported as income. The asset would have been reported anyway, so it would have shown up anyway. Investments/business assets/cash and the like are treated differently than income, and with a family your size 150K in assets could very well have a minimal effect. I really don’t know, as I am not an expert. </p>
<p>I do second the suggestion to go fill out the form and see what it says. Keep in mind any notes you make seem to be ignored by SSS as these are mainly for the schools to look at.</p>