I didn't see this coming...

<p>So, the moment when I finally am completely happy with my school, the moment when I'm looking forward more than anything to coming back, is the one moment it looks like everything may be ripped out from under my feet. </p>

<p>As some of you may remember, I'm attending Reed College. Although I had some discomfort with the school earlier this year (its a hard school... ate my soul for a bit... but we've made up since) I've grown to love the place. So, you may ask, what's the problem?</p>

<p>Well, I got my financial aid information in the mail today. You see, last year, it was a GIANT deal when my Reed financial aid info came because I thought there was no way in the world I could ever afford it. They came through, and though it was tough we managed (26k for the year). I've heard Reed increases aid or keeps it the same for returning students and felt safe attending. However, my dad made more money this year. Really, it was a fluke. His company, this year, made a new pay plan so he makes LESS money then he did before. Way more less than this year's income, even less then the year before's. So, while I though my aid would decrease a little, I had no idea it was going to be this bad. </p>

<p>We wrote a letter explaining our circumstances and how there's no way my dad can make the money he did again. They gave my package and said they can't take any of that into consideration. This year Reed is going to cost 40k... which is is more then my family can afford. We're going to call the aid office and try to explain this... but... well... I don't know what to do. I don't know why they'd change now. </p>

<p>I have no idea how to piece things together now. I don't want to push my family into more debt and... well... its just crazy. We could hardly afford last year... it was a push. We can't afford this year... especially since my dad's making so much less. And, it doesn't help that this leaves me without any alternatives school-wise. :/ </p>

<p>Anyway... I just thought I'd see if any of you wise parents have any ideas. I'm still in shock right now and depressed as none other. Getting into Reed was such an honor, being able to attend was such a dream come true... I can't believe that I might lose it all.</p>

<p>YOu don't have to "lose it all." If Reed won't re-think the financial aid package for this year, you could take a year off and work. By then, your father's income will be lower for FAFSA purposes and your financial aid package will be better. At most, you'd lose a year.</p>

<p>Whitneylm, send a PM to Emeraldkity4. Her daughter just graduated from Reed, but her daughter had to take a year off and (I believe) took some community course classes during that time. The reasons weren't financial -- I think that the daughter had to make up a course that she had difficulty with at Reed (organic chem, maybe?) -- but I still think it would help you to talk to EK about how things were handled with that "gap" year & ultimately finishing out at Reed.</p>

<p>The solution that ellemenope suggests is a mixed bag. If you take off a year and work, then your income will be counted toward financial aid - except for about $3000 that will be excluded from consideration, the remainder will increase your EFC by 50% -- so if you earn $15K, your EFC goes up by $6K. But it gets worse: let's say that you live at home and out of that $15K you manage to save $10K. Your EFC increases by 20% of whatever you have in the bank (fortunately, though, in 2007 it's reduced from 35%) -- so that's $2K + $6K = $8K added to your EFC. Of course, in this example you have $10K saved up, so it's not too horrible -- but basically most or all of what you earn goes into increased EFC. If you live on your own and are unable to save -- let's say you work full time and earn $25K, but after expenses are only able to save $8K -- you've got an increased EFC of $12,600 -- $4600 MORE than what you've got left in savings. </p>

<p>Is there any way your parents can handle a PLUS loan for the difference this year? If they could take a loan for $14K, the payments would be about $175/month. If you parents could handle this for now, maybe you could agree with them to take over the loan payments once you are out of school. </p>

<p>The alternative is that you take a year off but attend a community college that year, taking only a part time job that won't earn too much, and using that to take some general ed courses -- obviously that won't be the same as Reed, but it could be a way to get some requirements out of the way with a little less stress. Then you can come back when you get better financial aid.</p>

<p>If you are talking about taking the year off -- could you work for americorps? I think they give you a voucher to be used at college and I don't think that impacts your EFC the same. </p>

<p>I would still pursue discussions with the FA office at Reed. If you can document the decrease in income, it might help. Ask for someone higher up in the office.</p>

<p>If you take a year off, you will not be counted as a dependent on your parents' family health plan. Something to consider.</p>

<p>How much is the reduction in financial aid? Can your parents borrow more to make up for the shortfall assuming that next year, you will be eligible for more?</p>

<p>Calmom--I had no idea that working would have such an impact on fin aid. Then the best plan (if talking to someone higher up in the fin aid office doesn't help) would be to go to a CC--it would have the benefit of fixing the problem Marite brings up (which can be a doozy if you get sick with kidney stones, appendicitis, etc.).</p>

<p>Is this an area where the parents should be talking to fin aid?</p>

<p>I believe that if you arrange a 'leave of absense' from the college, you will still technically be enrolled and the insurance will stay in effect. That was the case with my s 1.</p>

<p>My insurance requires students to have 'full time status'.</p>

<p>as a last minute thing whitley (which you hopefully won't have to do), you can still apply as a transfer to some schools for fall semester. But hopefully Reed reconsiders your financial aid, it would be sad to have to lose all you've worked for because of something unexpected that occured</p>

<p>our health insurance allows dependents to remain insured as long as we pay 51% of support.
Re Reed- when my husbands income went significantly down, they were quick to adjust it- once we could submit pay stubs.
When D took teh year after junior off ( it was because she needed to retake spring semester of Ochem- and we thought it was best just to retake the entire year)- she moved back home- worked not quite full time and went to school at a community college-.
This worked fine- because she had her classes preapproved by the depts, and also because when we redid her FAFSA for senior year- it didn't really consider the time that she worked the most, because it was for the * previous* year.
The community college courses ( you can't attend another U, because you have to be matriculated to register for most classes- then you would actually be a transfer student)- were courses that Reed didn't offer, like geology of the pac northwest.
The Ochem prof at Reed- ( Patrick) was actually so supportive and great- I am not sure why she didn't do well on the final- but D also has some quite severe learning issues, and Ochem is a pretty rough class-
We have had pretty good aid at Reed- while we did have to borrow to meet the parents portion of EFC- the remainder of package was mostly grants- a little work study and some subsidized loans.
Of course we didn't have the experience that you are having, of one year being disporportinately higher income.
I don't imagine that your family was able to save the extra that was above what your normal living expenses were?
I would also ask them again- that if you submit new paystubs indicating a lower pay scale than what your previous financial information indicates , if they would adjust it.
They did that for us after 9/11 when my husband was laid off shortly after D began her freshman year, he got his job again, but it was at a much lower pay scale. Once we submitted the documents- they adjusted it. We found them actually pretty reasonable to work with, but they need documentation.</p>

<p>Thank you everyone for your comments. </p>

<p>Well, here's the problem with taking out a loan... part of the reason my family is having such a hard time with this increase is because of severe debt issues. We had a really rough past, something we keep trying to put behind us (but, debt is sure hard to get out of). With interest rates as high as they are... I dunno. :/ It might just come down to that but I'm really worried about what that would do to my family. We really didn't see any of my dad's extra income, everything goes to debt and living expense. My family recently implemented a budget, which is making things better (and lowering living expense) but that was just this year. With the budget, last year's Reed payments put us -500 a month. :/ I can't imagine now being - 1500 a month. </p>

<p>I've been trying to get in touch with the FA office. Hopefully they can call me back soon because I'm going out of my head... couldn't sleep last night either. :/ We're hoping that if we show them the contract my dad's company made him sign (that makes him forced to make way less money then he's made recently... especially less then last year) then maybe they'll reconsider. Its hard because this really is a lose lose situation. I was thinking about trying to live off campus and really eating as cheaply as is possible... but they'll probably adjust my aid package and I'll lose what little I have. Same with outside scholarships (not that there are probably any left).</p>

<p>My dad really doesn't want me to have to take the year off... but... well... if that's what it comes down to I guess I don't really have a choice. :/ I can't help but feel I let my family down with this... I had other less expensive options last year... I just didn't like them... but, you know, it wouldn't have come to this if I'd done that I guess. </p>

<p>Thanks again everyone.</p>

<p>Whitney:
I am hoping for the best for you. Do ask the Finaid office to consider the debt as well as the contract. Also can your parents participate in the discussion? It's their finances! Good luck!</p>

<p>Whitney,
Please don't blame yourself for this. It is NOT your fault. You chose the school you felt would be best for you, and your parents COULD afford it at the time. You had no way of knowing what would happen. Talk with financial aid; talk with your advisor about the community college options some are mentioning. Perhaps your advisor would have some other suggestions. It will be OK. You may have to make adjustments; the next year may not be exactly what you had planned or hoped for. But it will be OK in the long run.</p>

<p>I see- debt is indeed very difficult-
Most aid doesn't consider debt unless it is for something like a kidney transplant for your 7 year old.
We don'thave debt expect for our mrtgage which is minimal- and so perhaps our EFC is closer to what we could actually afford.</p>

<p>However many people have had to change schools because of aid- If Reed hadnt been close in expense to what an instate public would have been, we would not have been able to afford it at all.
I have spoken to many people who have had to change schools, not just from Reed, but from say out of state CA schools that they loved, but it just wasn't feasible for 4 years.
If it was just a fluke year- and the aid dept wouldn't adjust, then taking a year off might be the way to go IF you are determined to stay at Reed.
But I say this honestly- from what I have seen- consider that freshman year will be the easiest year you have at Reed by far.
My D loved it- but I think part of her wishes that she could have had the same experience at a school that didn't require blood from her brow just to pass a class- let alone get high marks.</p>

<p>Can you live off Campus? Oregon is very (it is that REED isn't it?) generous with it's food script. This could help you cut costs by about $3,000 (meal plan). Also what about becoming an RA? Work study? Part time jobs?</p>