Grad School - Simplified Needs Test - How to Qualify?

[chigrad]

<p>Headed to grad school this fall for 3 years. Since I engandered my qualification for subsidized loans this year by selling my primary residence before filing FAFSA and not buying a new home until I move for school this summer, I want to make certain I do not do the same again next year.<br>
I have heard multiple things from fellow students regarding the income allowed for simplified needs test qualification (trying to make sure I don't miss out again next year since this year's expenses will be all unsubsidized loans).
My college savings is in stocks so I need to cash out to pay tuition this fall and next spring. Will NOT qualify for filing 1040a/ez b/c of stock sales. Need to know if I should cash out all now (under 50K) as advised by an advisor b/c of market uncertainty or cash out in spurts (17K a year). Also if I have to watch how much I cash out plus my income YTD.
Anyone know if 1. you can get simplified needs test based ONLY on total income (is this wages or AGI or some other calc) or 2. if it is a combo of income and 1040a/ez filing? I have heard various things.</p>

[thumper1]

<p>I’m not sure that having a lower EFC is really going to benefit you much for Grad School. Grad school financial aid is largely merit based and is awarded based on the strength of your application to a particular grad program and how much the school wishes to offer you based on the strength of your application. There is precious little need based financial aid for grad school. It’s not like undergrad where there are Pell grants and other need based federally funded grants. Some schools do award work study based on need.</p>

[swimcatsmom]

<p>

if 1. you can get simplified needs test based ONLY on total income (is this wages or AGI or some other calc)

No, you can’t get it just based on income. Simplified needs is based on a combination of AGI (<$50k) and meeting one of the other criteria. The other criteria include being eligible to file a 1040A/EZ, receiving certain means tested benefits, being a dislocated worker. If you do not meet one of the other criteria then you are not eligible for simplified needs, even if you meet the income cut off.</p>

<p>

For the 2011-2012 Award Year, an independent student qualifies for the simplified EFC formula
if both (1) and (2) below are true:
(1) Anyone included in the student’s household size (as defined on the FAFSA) received benefts during 2009 or 2010 from any of the designated means-tested Federal benefit programs: the SSI Program, the Food Stamp Program, the Free and Reduced Price School Lunch Program, the TANF Program, and WIC; OR
the student and student’s spouse (if the student is married) each meet one of the following conditions: filed or was eligible to file a 2010 IRS Form 1040A or 1040EZ, filed a 2010 IRS Form 1040 but was not required to do so, or was not required to file any income tax return; OR the student (or the student’s spouse, if any) is a dislocated worker.

</p>

[chigrad]

<p>To thumper1 - I was asking ONLY about loans. I did receive sizable merit aid towards tuition (one of the luck ones as mine is a professional program and only about 30% received anything) but this year I was locked out of any subsidizied loans - I can’t keep borrowing for 3 years unsubsidized at 6.8-8% (stafford and PLUS loans) as I am in my early 40s.
Swimcatsmom - so, you introduced an interesting wrinkle - I am unemployed and receiving benefits during the weeks I do not have enough PT work. (I was in 2010 as well but apparently, according to your formula, since I made more than 50K for the year got kicked out of simplified needs test and they looked at the proceeds from my home sale and wallopped me on the EFC). Soo… is it true then that IF I was receiving unemployment at some point in 2011 AND I earn less than 50K in 2011 that on the FAFSA I file in 2012 I will be eligible for simplified needs test?
Thanks all for the info!</p>