I don’t see how a Pell grant is possible with $1.2 M in unprotected assets and an income that’s too high to ignore those assets.
Unless the assets are ignored…the assets $1,000,000 of them…would yield a $56,000 EFC…right? 5.6% of a million?
^^^
Yup. But OP said that a large severance was received last year, which would be included in 2016 income when a 2018-2019 FAFSA is submitted for the student, who is now a high school junior.
So really…probably no need based aid for 2018-2019.
The OP should know his AGI for 2016. What is it?
Anyway…perhaps,the OP…or his wife…will find jobs soon. Or both of them.
The dad said something about getting free/reduced lunch for his kids…if he gets that, are assets ignored?
The free lunch ‘eligibility’ rules don’t consider assets. But unearned income from assets is considered.
Finding the links, especially current links, is a pain, so OP should do the legwork and plug in their household info. 45k might or might not be eligible. (2nd link is old data but easier to read than the first, first has more details)
https://www.federalregister.gov/documents/2016/03/23/2016-06463/child-nutrition-programs-income-eligibility-guidelines
https://www.fns.usda.gov/sites/default/files/RPieg.pdf
And the NACAC application fee waiver form states that ‘eligibility’ is a criteria, you are not required to actually apply for and receive free lunches. (we actually used this form for college application fee waivers even though we don’t receive free lunches. We provided it to the HS GC and GC completed the common app fee waiver section. I think that’s how it worked anyway).
Only IF his income is below the threshold for qualifying for simplified needs…which is $49,999. That won’t be the case for 2016 as he received a large severance…so for,the 2018-2019 fafsa…no…they won’t qualify.
If he gets a job…and his wife gets a job, their incomes for 2017 sound like tthey will also exceed the $49,999 income threshold for that year.
Income is the first determiner for the simplified needs test. Then one of the the following…
- Dislocated worker
- Eligible for means tested benefit
- Able to file a 1040a or 1040EZ tax room.
But the income level is the first item to be met.
Hmmm… @kelsmom
How does it work if someone NOW has an income where their kids are on “free lunch” but during a previous year (the FAFSA reporting year) their income was above the threshold?
Ok…so income is tested first using the prior year. But can PJ adjust that?
The student would need to ask for a special circumstances consideration if the father AND mother do not get jobs before filing the FAFSA.
This is completely school dependent…and decided on a case by case basis.
If I were this parent, I would be looking for affordable colleges…and a job for both parents.