My HS senior is hoping to accept admission at a private university for this Fall (acceptance date is now June 1). I’ve been trying to get more fin. aid to make this not seem as lobsided when compared to our state public. However, this week I was thrown a curve ball. My job was eliminated (effective next week).
Fortunately I will get a good severance package (2020 total income will be nearly the same as 2019 when severance and unemployment are counted). I’m not sure what to do about the private university. Paying for this next year will be fine, but after that I will need a lot more financial aid and we may end up moving for a new job, if one appears.
Tough decision because of a lack of clarity for 2021 and beyond. Going to contact the university’s fin. aid department and see if they can give me clarity on a 2021 aid estimate.
This question really belongs in the financial aid section of this site…so if it gets moved, don’t be surprised.
Your severance pay and unemployment pay are both considered income. They will both be counted when you file for financial aid.
It sounds like your 2019 income (which will be used for 2021-2022) and your 2020 income (which will be used for 2022-2023) will be about the same as for this coming year (which used 2018 income).
If your student is starting now, the year you need to be concerned about is her senior year. For the other FAFSA and Profile Years, you are saying your income will be about the same, right?
2018 income used for 2020-2021 forms.
2019 income used for 2021-2022 forms (you know what that was)
2020 income used for 2022-2024 forms (you say that will be about the same when severance and unemployment are considered)
2021 income is your loose cannon which will be your daughter’s senior year 2023-2024. I seriously doubt any financial aid department will be able to project three years into the future!
even with the high unemployment due to Covid, they’re probably still going to say “let’s see how things go”…because maybe you’ll get a new job in the Fall or Winter. why would they tell you NOW that you’ll get more aid for 2021 when you might be fully employed by Sept?
IS this cost vs any UC/CSU? Your scenario is as good a reason as any to take the most conservative option. Your severance will be taxed to the max and might leave less actual $$ than you imagine (sure you might get some back but that is a long way out). If that severance is going to add to your assets vs used for living, then it will impact further.