<p>It just so happens that 2004 represented a very unusual financial windfall for us due to some consulting my husband was doing. However, going forward into 2005 our income will be substantially lower. How do I handle this while filling out the CSS Profile and FAFSA? Son has applied regular decision to 7 schools and we are hoping for merit scholarship $. Thanks for any suggestions.</p>
<p>You can send a letter to the colleges explaining your windfall. But to be honest, they will be expecting you to use a portion of that money earned in 2004 to pay your son's college expenses when he enrolls.</p>
<p>Well, yes, I understand that. I noticed there is a section P on the CSS that asks you to describe Special Circumstances. Do you think the schools read that? Is it enough to just note the situation on there or should we still send a letter? Thank you.</p>
<p>For federal aid, it makes no difference. If you get a windfall one year, you are expected to put the same percentage of it as your other income towards college. It is a big problem for those who get a designated amount of money which has long been ear marked for a specific purpose. This happened to friends of ours who were starting a business and every dime was allocated to it. They were counting on a release of retirement funds to be a main source of the capital, and did not take into account that they were going to have to put 35% or more of it towards college education. Unfair, yes. Especially with that money sitting in that fund not count an iota towards the EFC, but the moment it is released, it is zapped. And their future livelihood depended on this venture. Does not matter.</p>
<p>If you're looking for merit money, I'm not sure the fluctuations in your income have any bearing whatsoever. In our case, we were not eligible for financial aid, but my son got offers for merit aid ranging from $500 to $18,000/year. If we'd been smarter about it, we would have used the top offer to negotiate at the school where he is attending. If you really mean financial aid, I believe you have to reapply every year - as your income changes, so will your aid package. In theory.</p>