<p>Since it is Q4 my recent job loss isn't going to impact our '10 income much, but looking forward it would lower our EFC dramatically. Do they only look at the '10 income or are they going to factor in the job loss for '11.</p>
<p>While they base aid on the previous year’s income, some of the very generous, read top, schools will entertain a special circumstances review.</p>
<p>Actually most schools will consider making a special circumstances adjustment when there is loss of income or some other special situation such as high medical bills. (My daughter’s State U that has no institutional aid at all granted her an adjustment her first year of college when we had loss of income and over $10k in out of pocket medical expenses). </p>
<p>You would have to ask the school. Generally they will not make an adjustment for a job loss until it has been ongoing for some time. So you may find that your initial EFC and financial aid may be based on actual 2010 income and only if you are still out of work later in 2011 will they be willing to consider a special circumstances review. Only your specific school can tell you how they will handle this.</p>
<p>Good luck.</p>
<p>If your child is applying to colleges this year, for admission in fall 2011 – you should write a letter to each and every college financial aid department explaining the “special circumstances” about your job loss. Send the letter at the same time that financial aid applications are due, usually around Feb 1 – you want the fin aid department to have that information *in hand when reviewing the file for the first time. You are a lot better off if they have contemplated that issue when writing the award initially than if they give you an award based on 2010 figures and then you are asking for reconsideration or an “appeal” in the spring – keep in mind that financial aid budgets are limited, so if they don’t know about your circumstances in February, by the time April rolls around they may not have any money left in the budget to do much to help you.</p>
<p>Writing that letter does not mean that they have to make any allowances – but this is NOT the type of information you want to hold back. You may have some colleges contact you for more information even before your kid is admitted. </p>
<p>In the spring, when you do receive financial aid offers, you will also want to call back the financial aid departments to discuss what factors were considered and what might happen under various scenarios. For example, you may receive an award that looks very generous to you, apparently written in consideration of the job loss – and in the meantime, you might get hired for a new position, starting in June … you really will want to go over figures with the financial aid department.</p>
<p>When the financial aid department writes an award and sends it to you, they have to come up with a specific number – but if there are “special circumstances”, then there may be all sorts of contingencies – those may or may not be noted on the award. So once having written the “special circumstances” letter, you will not want to accept any written award at face value without checking to see what factors came into play and how things will change down the line, depending on possible changes in your job situation.</p>
<p>Do you expect to be unemployed for awhile. I think u have to be out of work for at least 12 weeks. What do you think your efc will be if you remain unemployed.</p>
<p>That special circumstance finding may or may not happen. If you had a very good job in '10 the school may expect you to find another job pretty quickly.</p>
<p>I would apply for FA as soon as you can to give your child the best chance for the most money and possibly work-study awards (which may go fast)…</p>
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<p>Yes, a friend of mine had that problem and the college stalled for a long time. He got some short term consulting gigs (which dried up soon) and they suggested that job loss was not that serious and it was only in the next year that they made changes, when the family income had come down considerably as shown in the tax filings.</p>
<p>So…what’s the verdict if you have a two-income family and one spouse loses his/her job, but the other spouse still has a good paying job? </p>
<p>Are schools less generous or less concerned because the family still has a good wage coming into the household?</p>
<p>It depends on the school. Loss of income adjustments have to be made using professional judgment, meaning that each school will do things differently. We use actual income for a particular period of time … so even if family income is cut in half, if the other half is still high, the adjustment may make no difference. A PJ for loss of income might result in sub loan rather than unsub, which is worth pursuing (even if it isn’t what the family had hoped for).</p>