If my family's income increases during college years, should I pay more?

<p>I am currently high school senior.
My family's income is a little more than 50k but my sister's college tuition is about 12k/yr.
I also fear that colleges evaluate my family's ability to pay improperly because of my sister's ridiculously high tuition.</p>

<p>Anyway, to increase the amount of financial aid I can receive, my parents intentionally decreased their income. So after I become sophomore, my family's income is likely to increase.
Then, does my aid decrease?</p>

<p>Please help me, it's so important to me...</p>

<p>If your family’s income goes up, your aid likely will go down. Colleges will not assume that all the increased income can go to college expenses, but you likely will see a change. You will also see a reduction in aid if your sister graduates or stops attending college.</p>

<p>However, your statement doesn’t make complete sense to me. Colleges have a pretty set formula they use to look at thinks like income, assets, and how many kids are in college. I don’t know that the amount of your sister’s tuition changes their calculation – the fact that she IS in college does, though.</p>

<p>

12k/yr is very reasonable.

You’re likely to keep any merit-base scholarships; but your need-based financial aid may decrease. Need-based financial aid is determined annually.</p>

<p>Are you and your sister attending (or planning to attend) colleges that meet full need for ALL students? If not, all bets are off on the amount of need based aid you will receive.</p>

<p>Need based financial aid is evaluated ANNUALLY. You will need to apply each year, submitting whatever forms your college requires, with supportive documentation that they require as well. The college will recalculate your financial need and your need based award annually.</p>

<p>Decreasing your family income for ONE year will ONLY help you for that ONE year. I’m not sure why your parent(s) thought this would be beneficial for the long term. It won’t be. If their income rises, your family contribution will rise (if you are attending a school that meets full need). If you are not attending a school that meets full need, your net benefit could be nil.</p>

<p>For example, if that reduced income makes you eligible for a Pell Grant, then any increase in your FAFSA EFC in subsequent years WILL reduce your Pell eligibility.</p>

<p>If you have a merit award that is not tied to need, the provisions of maintaining that award should be in the letter awarding you the merit award. This usually requires maintaining full time status, and a specific college GPA for continuation.</p>

<p>As others have said, FA is recalculated every year based on the prior year’s income. If income goes up, the EFC will go up and aid will go down.</p>

<p>

Most schools will not care at all what your sister’s actual tuition is. $5,000 or $12,000 or $20,000 - they won’t care. FA is based on your EFC. The part of the EFC generated by the parent income is divided equally between the number of students in college. For instance, if the EFC formula calculates 6000 then sees 2 in college, the final EFC will be 3,000. So your EFC while your sister is in college will be lower. Once she graduates, your EFC will increase quite a bit.</p>

<p>

Also the part of EFC due to parents’ asset is divided by the number of college students (exclude parent students)</p>