<p>Thanks to the gods of corporate outsourcing, my husband has been laid off. Fortunately we live within our means and we can pay our bills on my salary and I have some potential to work more hours. Life beyond the basics will be difficult though. He's not had any luck finding work yet, he's older but not old enough to retire. It seems like it may be time to find something close to home, without the corporate lifestyle. He loved the work he did but it was very stressful and try as he might he just hasn't found work in the same field. It looks like a huge pay cut is going to be our new reality.</p>
<p>Our oldest daughter is a sophomore. His severance package will be over before the end of this year. Am I right that 2008 will be what we are judged on for EFC purposes? Do colleges ever want to see previous year's tax returns? She'll be graduating HS in 2009. Am I insane for thinking we may be better off with my husband earning less money? I know that's counterintuitive, that not all schools meet 100% of need, that it's better to have cash than to not have cash, but factoring in taxes, a much less expensive commute, and a forced commitment to simpler living, maybe we can make this work? I've run the calculators with different scenarios. I guess because of home equity the Profile is significantly higher than the FAFSA. Ballpark figure for Profile is 20K, which would be met with savings and grandparent help. I think we can do this, at least at some schools with generous aid. He hasn't given up on finding work in his field but so far it's been nothing but frustration.</p>
<p>Yes, it will be your 2008 income, however, let all the schools know your special circumstances of the lay off in 2007 and that you are still recovering from it in 2008. Send each school's financial aid office a special circumstances letter. Apply to school which meet 100% of demonstrated financial need...US News and World Reports has a book entitled 'What College Really Cost' probably a 2005 publication, so the info is a bit dated but it will let you know the average grants, loans and 100% of demonstrated need for every college.</p>
<p>I would suggest you get some books on college and financial aid -- you have some time to plan and maximize the money you do have.</p>
<p>A few things I would do -- make sure you are debt free (outside of home equity) since debts aren't included in the FA calculations. Find out what your protected asset allowance is and keep at least that amount in easy to reach funds. maximize retirement accounts -- if your husband has any, make sure you roll them over and don't cash them out.</p>
<p>The more you understand how the system works, the better you will be able to negotiate it.</p>
<blockquote>
<p>Apply to school which meet 100% of demonstrated financial need>></p>
</blockquote>
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<p>This is fine advice if your daughter is at the top of the admissions game. Most schools that meet 100% of need are HIGHLY competitive in terms of admissions. Getting IN to the schools is the challenge. You should also consider looking at FAFSA only schools especially if you own your home. The FAFSA does not consider home equity in the equation for finaid. Profile does. And look for schools where your daughter would be at the high end of students admitted...and where merit aid is offered (those 100% meet need schools mostly have only need based aid...no merit). She may find herself getting a good scholarship. AND look at your own instate universities. Most provide a good college education at a more reasonable cost. If your child is a high ender, the honors college programs at the big flagship U's can be wonderful.</p>
<p>which would be met with savings and grandparent help.</p>
<p>profile will ask for assets
if you have savings and available money from grandparents they will ask that to.
Rather than have grandparents help up front- it may be more advantageous to ask for their help after graduation with loans</p>
<p>About the grandparent help...unless the money is in an irrevokable trust for you or the child, I would not mention that. Situations change, people become ill and that help money that may be available when you file for fin aid may not be available when the bill comes due in August. And make sure your child has one financial safety school that he/she would be happy to attend.</p>
<p>The grandparents can "gift" up to $10,000 per year to your child. That gift can be used to pay tuition. Don't stockpile it. They can also gift $10,000 per year to you that also can be used to pay for college.</p>
<p>Albertson Albion Amherst Arizona State
Univ. of Arkansas College of the Atlantic Bates Beloit
Bowdoin Brown Bryn Mawr Bucknell Cal Tech.
Carleton Case Western Res. Centre Univ. of Chicago
Claremont McKenna Harvey Mudd Pitzer Pomona
Scripps Colby CO School of Mines Barnard
Connecticut College Cooper Union (Free) Dartmouth DePauw
Dickinson Duke Florida State Gordon
Goucher Grinnell Guilford Harvard
Haverford Univ. of Hawaii Illinois Inst. of Tech Univ. of Illinois
Knox College Lawrence College Macalester Marlboro
M.I.T. Michigan State Univ. of Michigan Middlebury College
Univ. of Missouri Montana Tech. Mt. Holyoke Northwestern
Oberlin Occidental Ohio University Univ. of Penn
Princeton Univ. Rice Ripon Univ. of Rochester
St. Mary’s (MD) St. Olaf Smith USC
Stanford Univ. Swarthmore Trinity (CT) Trinity (TX)
Tufts Union College Wabash Wake Forest
Wellesley Williams Yale</p>
<p>If your daughter applies ED or EA, some colleges may ask for the 2007 returns -- they would not ultimately be used as the basis for financial aid, but the colleges might see them an preliminary estimates might be made on the earlier returns.</p>
<p>I have no great words of wisdom to add, only words of solace. I know EXACTLY how you and your husband feel, because I recently lost my job of 20+ years when my employer closed the site at which I work. (In fact, my last day of work is next week.) My D is a rising HS senior. Apparently this means that her FA will be based on our 2007 income, which will be grossly inflated by my severance pay. Interesting times ahead.</p>
<p>Luckily my H is still employed, and I did mange to find a new job in a completely new field - at a much much lower salary. However, I know well the uncertainty, fear and frustration of trying to find a job in an unfriendly economy. Hugs to you and your family, and good luck! Let us know how things work out.</p>
<p>Thank you for the replies. Scout, it really does bring such uncertainty and stress. I think at this point I'm trying to find anything good in the situation. Fortunately we have no debt aside from what remains on our reasonable mortgage. Things could be a lot worse. I just hope I'm not being too pollyanna-ish in repeating this will all work out a hundred times a day to myself.</p>
<p>As for the grandparent money, that's entirely theirs and would be in the form of a less than 10K gift when it's time to pay tuition each year. We're trying to bank as much of the severance package as possible. Our assets on the whole are not tremendous though. Like many people, it's the home equity which dings us on the Profile. </p>
<p>Daughter #1 will have the stats to enter the pool on the big name schools, but right now she wants off the beaten path. She'd like some place not in the northeast, where there would be other smart kids but not exclusively so, with small classes and great discussions, and very little pretentiousness. She's indifferent to the concept of prestige, perhaps because she goes to a no-name high school and is receiving a challenging education for the most part. Thus she'd have no trouble dropping down a tier or two in the quest for merit aid. It seems a mix of merit schools, full-need schools, and Fafsa only schools would be a good idea. Does anyone know of any Fafsa-only liberal arts colleges? Or smaller state colleges/universities perhaps with honors programs, not located in the northeast? Does USNWR have lists of fafsa vs. profile schools or is it still researching school by school to find that info?</p>
<p>You may want to talk to an advisor about severance package</p>
<p>If you put a chunk in a retirement account this year- it shouldn't be looked at by most schools by the time she goes to college.</p>
<p>As long as you can meet your immediate bills- this could be a blessing in disguise and give you an opportunity to enjoy a less hectic lifestyle</p>
<p>It sounds like you have realistic expectations- can't give you specific choices for schools
We are looking at Lewis and Clark in Portland- who are switching from FAFSA only this fall- if she is very focused Evergreen state college in Olympia wa is a public lib arts school, that was my older daughters first choice for several years. I also think that there are a lot of schools that don't use PROFILE- haven't looked for a list but that doesn't mean one doesn't exist.</p>