If the primary breadwinner loses his or her job while their child
is in college, how long does it take for that fact to affect aid
decisions? That is, suppose you got no aid for earning a decent
salary and some time between student’s freshman and sophomore year
you lost your job for downsizing or whatever. I imagine there’d
be no help on the horizon for the sophomore year. But perhaps
in the junior year if you still didn’t have a job or had to take
a lower paying job?
At some schools, it will make little difference because they don’t have the money to give no matter what your circumstances are.
At other schools, they typically say to wait several months to see if the breadwinner (or other spouse) gets another job. If the other spouse makes a good living then it may not be possible to get much/any adjustment.
Will there be a severance payment? Any paid vacation days given?
Well fortunately it’s just a theoretical question so far. But I’m not getting any younger. 
Just trying to think through the scenario.
Don’t volunteer for that downsizing yet…
It varies by school. If you lose your job,M contact YOUR child’s college,mand ask what to do for a special circumstances consideration based on your job loss. They will tell you their process.
Happydad was laid off in March of Happykid’s junior year. On kelsmom’s advice, I contacted the financial aid office immediately. We were able to file the Special Circumstances paperwork right away, and that is what was used to determine Happykid’s senior year aid package, not the FAFSA we’d filed in early February. I was given to understand that had this happened in the fall, that university would have revised second semester aid.
So yes, contact the financial aid office right away. They will let you know what their process is, and what your options are.
My husband was laid off from his job in December of my son’s freshman year in college. We contacted the school immediately. They gave us all the information we needed to prepare a special circumstances consideration. BUT at DS’s college, the school does not review these until 90 days after the layoff or severance package has ended…whichever is later. The assumption is that the person will look for a job, and not need this assistance.
We had everything ready to go…but DH found another job before his severance ended…so we never sent it in.
My point is…you need to contact YOUR college to see what they do. As you can see…my timeline and experience…and @happymomof1 were very different.
My job ended while my kids were in high school (it was not a surprise). I was told me to appeal while they were in their freshman year and I did. One school gave the entire Pell for the year (and it was April), the other gave a different amount, but it was still for each semester of freshman year. Because I did have earning in the prior tax year, I had to appeal the sophomore year too, and both schools then used professional judgment for the Pell grants. One school is public, one private.
Now that they are using prior-prior tax year, it is going to take professional judgment to try to get more money based on current employment losses.
It will also depend on whether the school has need based financial aid at all. One of my kids cannot take need based aid from the school because of NCAA rules, and the other school doesn’t give it as ‘need based aid of $10,000’ as I often see here on CC, but as alumni and other scholarships, so when each of those is awarded, it’s gone. It’s not a big pot of money where one student might get $8230 and the next $756, but a specific award for $1000 or $2000, even if the student’s ‘need’ is $8000 or $800. There are a number for specific majors, so needy future nurses, teachers, engineers, accountants have a better chance at money.
In summary, it depends on the school.
Not only does it vary by school, but it varies by economic climate. A few years ago, maybe when HappyDad lost his job, schools weren’t waiting a long time because the economy was so poor that getting another job in the near future was not likely. Now that the economy isn’t as dire, schools are back to waiting.
Thanks everyone. Your ideas and experiences are most helpful.
My ex-husband lost his job in early May of 2009, the end of D1’s senior year in high school. We told her college but, as I recall, she was not given much if any additional financial aid (but I’m not complaining; she received a generous FA package). Nor was her FA increased in subsequent years even though my ex never got employment that paid close to what he earned in 2008. I think that D2’s college did take into account the reduced earnings; she started college in 2011. I increased my income to the extent possible but we were still low income for a few years (e.g., AGI of approximately $35,000 during D2’s freshman year and D1’s junior year). We did have assets and that helped us survive.
Usually ends poorly for families who end up in this situation.