<p>My D is a rising sophomore at Vandy. I just received her financial aid notice and her aid has decreased by about $10K with a salary increase of only around $9K. The only differences between the 2 years are the salary increase and our 401K value went up quite a bit but not from us contributing a lot to it. It went up because of changes in the market and the way we have things allocated. Also, it is my understanding that 401K value should not affect financial aid. </p>
<p>I looked over the profile we submitted each year and I am confused by one change in the profile that may or may not have affected this. The one we submitted last year specifically asked about wages being withheld for medical spending accounts (PF-115WI). I submitted the correct number there. However that line was not there this year so I placed it under "other untaxed income" (PI-225A). Was I correct in doing so?</p>
<p>I would appreciate any help you can give me before I attempt to contact Vandy's finaid department since the will only reevaluate if there is a mistake.</p>
<p>I wonder if that might be it. It depends how they originally treated the money going into a health savings account. Maybe it was not added back to income when reported as an HSA contribution. But it certainly would be added back to income if reported as other untaxed income.</p>
<p>Though the limit for contributing to an HSA is not that high, wouldn’t have though it would reduce your aid by $10,000 even if you reported it wrongly.</p>
<p>You should definitely call Vandy and talk to them. My experience with aid at Vandy was really good … my D’s aid didn’t go down even when we had a rise in income. It is possible that you listed something incorrectly, or that there was a mistake made. It is also possible that your $9k jump in income moved you from the income range that gets good aid into the income range where it drops off. There is a point where that can happen. Also, I would be surprised if they count HSA contributions (I am guessing that’s what it was) heavily … so putting it into untaxed income would have made a difference if they don’t count it dollar for dollar (although they may). But call, because it is best to know why.</p>
<p>Thank you for your help, ladies! I ended up emailing Vandy last night and got a response this morning saying she will look over it after the big July 1st rush to get things out. In addition, I called The College Board and inquired about that question in particular. She said in the past they have asked about healthcare spending accounts but for 2012-13 “they” (whoever they may be) wanted the question taken out. She said I should not have reported anything on that line. It was only $3600 but maybe it was a combination of things that made her aid decrease.</p>
<p>Kelsmom, did your daughter’s AYSC go up with each year she was there? Last year my D’s was only $1200. It was originally $2200 but they gave her a scholarship ($4500) and then lowered her AYSC a little bit. This year she still has the scholarship ($4300) but her AYSC went up to $2700. The paperwork has her listed as a Junior when in fact it should say Sophomore. It made me wonder if they expected the student to contribute more each year. </p>
<p>Thanks again!</p>
<p>I honestly don’t remember if it went up each year. I don’t even remember what it was senior year. Guess I am getting old. 
I am pretty sure it was higher junior year than it was sophomore year … maybe about $800 more, I am thinking.</p>
<p>Hang in there … hopefully, you will get good news!</p>
<p>I’ve heard a lot of good things about the Vandy fin aid office, so I’m sure they will get you set. As a rule, however, most schools do increase the student contribution amount each year. They do expect the student to be contributing more to cost as s/he goes the upper classmen route. But certainly not to the degree your increase shows. It looks like it was a combination of factors, salary increase, HSA contribution reported as pure income, a bump up into another category due to the first two factors, plus a possible increase in what is expected in student contribution. </p>
<p>Good luck in getting this resolved.</p>