<p>I am going through the financial aid process as a transfer student. I go to a community college full time 4 nights a week. I also work full time to help my dad pay the bills. For 2008, he made over 100,000, but lost his job in January 09, and has only made about 16,000 this year total. Since I work close to full time, I have made about $21,000. I am self employed, so I can't file the 1040 EZ, but my dad can. From the calculators I have used, I qualify for the 0 EFC, but I am not sure since I am self employed, and make more than him. </p>
<p>Does anyone have any insight on how this will pan out with financial aid for the fall semester?</p>
<p>Swimcatsmom is the expert in this area…but if my memory serves me correctly, if your family income is below a certain amount AND your parents can file a 1040EZ or 1040A, your (student) income and assets are not included on the FAFSA. Hopefully Swimcats will verify if I’m correct…or not.</p>
<p>Also, you don’t mention your mother. Are your parents married and did she work? If so, her income is included in the family income</p>
<p>Thumper is correct - if you qualify for the automatic 0 EFC then your income and assets will not be take into account. The auto 0 EFC requires that the parent’s AGI be <$30,000 and that be eligible to file a 1040ez or 1040a, or meet one of the other auto 0 criteria. </p>
<p>AGI includes income other than earned income such as dividend income, interest income, unemployment benefits etc…</p>
<p>Also, you may only have the auto 0 for one year. Since your dad has the income potential of a 6 figure income, he’ll likely soon again be gainfully employed.</p>
<p>Since he was laid off in January, are you sure that he only earned $16k for 2009. Didn’t he get a severance or any kind of payout from his employer?</p>
<p>My parents are separated and I live with my dad, so his income will be the only income we use (besides my own). The $16,000 he made this year is almost all unemployment income, and he did not receive any sort of severance from his employer. He works in construction so we are generally used to having a good year and then a bad year, financially at least. My efc for this year was really high, will my school (Bradley University in Peoria, Illinois) give me less aid because last year he made more? </p>
<p>Thank you, your replies are very much appreciated.</p>
<p>*My efc for this year was really high, will my school (Bradley University in Peoria, Illinois) give me less aid because last year he made more?
*</p>
<p>I’m confused. Are you asking if you’ll get less money because when you file with the new 2009 income of $16k it will be a lot less then when you filed using the much higher 2008 income?</p>
<p>Schools are funny about reduced employment or laid off status. Since your dad’s situation has lasted for more than 6 months, you should have a much lower EFC. </p>
<p>However, that doesn’t necessarily mean ANYTHING if Bradley U doesn’t have much aid to give. You may qualify for some federal grants, but since Bradley’s COA is about $32k, then you’ll likely have a big ole gap. </p>
<p>What I mean is this…</p>
<p>your COA is $32k
you may get a federal Pell grant for about $5k
then you’ll get a Stafford loan for about another $5k
You’ll have about a $20k gap.</p>
<p>So, even if your income doesn’t “count” for your EFC, it doesn’t matter. You’ll still have to use your income to cover the big gap. </p>
<p>Have you talked to the school about what aid they give besides federal grants (to low income) and student loans? </p>
<p>Another problem you might have is this. If you have a big gap, it’s unlikely that you’ll be able to get a loan to cover the gap because you’ll need a co-signer. If your dad is only earning unemployment, he likely cannot qualify to be a co-signer - even if he agreed to co-sign.</p>
<p>[qoute]SO even if you father had a bad year this year that does not mean they will not assess the money in his bank account from previous years.
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<p>not true. Your bank account balances are put onto the FAFSA as the amounts IN those accounts on the date of the FAFSA submission…not from years past. If the amount in the bank accounts is $0 the day you file your FAFSA, that is what you put. </p>
<p>Many people spend down a portion of their assets prior to the FAFSA filing.</p>
<p>I’ve filed EIGHT FAFSA forms and SIX Profiles in the last 7 years.Even with that…I want all to remember…I am a parent who has been through this process…not a financial aid “expert”. Both of my kids had things they NEEDED college before they went. In the four years before DD went to college, we bought her two musical instuments (she continues to play them and study in College) that totaled about $14,000. DS needed a new musical instrument AND went to a prestigious summer music program for several years…taken out of OUR savings.</p>
<p>We were basically full pays anyway. BUT this is not “hiding” or moving money and there is nothing illegal or wrong about purchasing things that are needed.</p>
<p>If your house has a leaky roof or a boiler that fails, you don’t need to be made to feel guilty about using family savings to do these repairs prior to filingthe financial aid applications.</p>
<p>Likewise…if you are selling your house and don’t plan to purchase another one with the money…you would not want that money in a savings account the day you file your fafsa.</p>
This is completely wrong. FAFSA has two special tests when the parents have low income, the simplified needs test and the automatic 0 EFC. </p>
<p>The simplified needs test ignores all assets when the parent AGI is below $50k and certain other criteria (such as being eligible to file a 1040a or 1040ez) are met. In this situation the EFC is based on income only.</p>
<p>The automatic 0 EFC ignores all other data, including assets and student income, when the parent AGI is below $30,000 and the other criteria is met. Once the EFC formula establishes that the income and other criteria for auto 0 have been met then the EFC is automatically 0.</p>
<p>The problem for some folks is when they incorrectly answer the question about being ABLE to file the 1040A/EZ. Those who do are often unhappily surprised when they find that they are not auto 0 or simple need due to their incorrect answer. But if the parents did file an A or EZ you KNOW you are good.</p>
<p>BUT this is not “hiding” or moving money and there is nothing illegal or wrong about purchasing things that are needed.</p>
<p>Of course those examples are legit. But, there are also people who are truly doing gymnastics hiding assets (like transferring money into another relatives’ name or some other stunts.)</p>
<p>Hiding and moving money really doesn’t apply to me, my dad doesn’t have any money to hide. </p>
<p>From what I understand, I will be able to get a 0 EFC on my fafsa. Whether or not I will get much more aid because of it (besides the PELL grant and Illinois MAP grant) I don’t know. </p>
<p>Another question I have is, I have been paying some of the bills for the house that we both live in. Will my dad have to report this as income on his portion of the fafsa?</p>
<p>LOL…I wasn’t referring to you. I was referring to some other threads where people have posted that they’ve temporarily changed the deeds to second homes and have moved money to others. All these gymnastics. :)</p>
<p>*Another question I have is, I have been paying some of the bills for the house that we both live in. Will my dad have to report this as income on his portion of the fafsa? *</p>
<p>good question…I think there is a question about someone else paying bills. Someone here will know the answer…</p>
<p>No. The student section has a question about money/support received from other sources (such as an aunt paying your rent). The parent section does not.</p>
<p>To get the automatic 0 the formula looks at the AGI (<$30k) and the other criteria (1040a/ez or other such as displaced worker) and then stops there if those criteria are met. Note it is the AGI - if the AGI meets the criteria then other untaxed income is not even looked at.</p>
I was referring to some other threads where people have posted that they’ve temporarily changed the deeds to second homes and have moved money to others. All these gymnastics. :)</p>