<p>Okay, so I posted on here about a week ago regarding my father's recent unemployment and financial aid. Well, he found a new job, but will only be making ~$90,000; roughly a $30,000 pay cut. Will my original financial aid offer (based on income of $120,000) be adjusted to the new imcome, or will it remain the same? </p>
<p>The schools pledge to meet 100% of demonstrated financial need. </p>
<p>His previous employer is offering him no severance, and he will not start working until 1 June 2010, and is losing his job 1 May 2010, so he will be completely unemployed for the month of May. What should I be expecting?? Please help</p>
<p>Your original financial aid offer was based on your father’s income in 2009. If he didn’t lose his job until 2010, the unemployment will have no effect on the income and asset information you reported for 2009. When you file for financial aid in 2011, it will take into account your father’s time of unemployment and his lower income in 2010.</p>
<p>Call your college’s financial aid office to confirm this.</p>
<p>We submitted an appeal, that doesn’t change anything?</p>
<p>It would be up to the college to review and amend according to their policies. But schools generally don’t make adjustments for future, short periods of unemployment so you shouldn’t expect much, if anything, to change (hopefully you can still afford your schools without adjustments). They always expect that families are paying for college with savings, current income, and future income. As vballmom said, your future circumstances will be reflected on subsequent applications for FA.</p>
<p>Some schools will consider doing a retroactive adjustment to your 2010-11 school year aid based on the tax return you file for 2010. But you should find a specific person at your finaid office and make sure they are willing to do so next spring when you file</p>
<p>Somemom, could you clarify what you mean please? I don’t quite understand</p>
<p>Glad to hear that your dad quickly found another job. 
This is why schools don’t make adjustments right after parents learn of a layoff. </p>
<p>Also, consider this, during the next 45 days, your dad should still be looking for ANOTHER job that pays a wage closer to what he was making - and that could happen since he quickly found THIS job (you might ask your dad if he’s going to continue looking for another job in the meantime - since the new job doesn’t start until June 1. That would probably be the wiser thing to do.)</p>
<p>His unemployment for one month won’t make a difference to the school. It’s overall annual income. Your dad’s income will not be $30k less this year (2010) because 5 months of his income will be at his old pay. The difference will be about $17k or so. </p>
<p>I think what Somemom is saying that is AFTER your parents file taxes next year (april 2011) for 2010 income, some schools will make an adjustment in your aid.</p>
<p>I think people are saying that a school is probably not going to make an adjustment now, because no one really knows what your parents are going to earn for 2010. If your mom doesn’t work, she may decide to take on a part-time job to help increase the income, or your dad may take a second job part-time to increase his income, or your dad may find another job that pays more. People do all sorts of things in these cases.</p>
<p>^^true, but I attended a recent HR gap fest and the discussion was centered around the fact that salaries for mid-career/late-career people reentering jobs after a layoff period have starting salaries about 20% lower than what they had when employed. Granted this is Michigan and employers rule and I’m not sure what is happening arouond the country, but gloomy news indeed.</p>
<p>^^^</p>
<p>That can be the case. </p>
<p>However, the OP is one of the many kids who’ve posted who’ve parents have rec’d layoff notices and wonder if their schools will immediately revise their FA packages. That is unlikely because schools can’t predict what the family will ultimately earn for the year. In the case of the OP, the family income may go down this year, but not by $30k and may not even be by $17k if other options are exercised. It’s possible that the family could end up earning more than they did in 2009. That’s why schools don’t usually immediately make FA adjustments in these situations.</p>
<p>M2ck is right, what I meant is that schools use the 2009 income to predict the 2010 income and offer aid, if the 2010 income changes significantly they will sometimes adjust your aid, but not until they see the 2010 tax return. So, you can hope for an improved offer, but won’t know what it is or see it until the spring 2011.</p>
<p>The only way I can see this ($17k) resulting in significant aid increases is if you end up becoming Pell grant eligible or meet some other threshold for the university to offer more grants and less loans.</p>
<p>Are you attending a FAFSA or Profile school? If FAFSA, have you run the formula to see what your EFC is now and how it will change?</p>
<p>The schools required both the FAFSA and the profile, but my EFC with the new income was almost half what the old income was, that is why I was confused. With a ~$90,000 income, our EFC was like $7,000 but with the old income ~$120,000 our EFC was almost $20,000.</p>
<p>^^^</p>
<p>Your new EFC would NOT be based on a $90k income for 2010. </p>
<p>Your dad will be paid with his $120k-level income for almost half of this year. By the time he’s laid off, he’ll have earned about $55k+ (probably a bit more if he has unpaid vacation on the books that must get paid. If he’s like a lot of men, he many have 2-3 weeks unpaid vacation on his account that would need to get paid at the time of his lay-off). He may end up getting paid for half the year at that rate. </p>
<p>Then, on June 1st, he’ll start his new rate. So, he’ll make an additional $45k from his second job. Together, he’ll probably make about $105k this year (plus or minus). </p>
<p>BTW…with an income of $90k, your EFC would be more than $7k unless you have siblings in school. With a $90k income, your EFC would be closer to…$20k per year. And, again, your dad will earn more than $90k this year.</p>