<p>My parent lost their job this month but for any financial aid it asks for the previous years income. Since that parent was the main source of income and we just lost it, does financial aid take that into account? I started filling out FAFSA and it asks for income of 2013-2014.
Thanks</p>
<p>You won’t fill out the new FAFSA for 2015 school year until after Jan 1, 2015. There is a question that asks if the worker is displaced worker, and if you check that box it asks different questions. You still fill out the FAFSA with the income from 2014, but assets are treated differently.</p>
<p>You can appeal the 2014-15 awards if you want. There is a form, and they will ask for the circumstances, and for signed copies of the prior year’s taxes.</p>
<p>Are you going to be starting school for Fall 2015? If so, the 2015-2016 FAFSA which asks for 2014 income won’t be available until January 1st, 2015. If you aren’t currently attending school for this year, you don’t need to fill out the FAFSA yet. </p>
<p>Anyhow, you are going to need to report the income stated on your parent’s taxes and then you will need to follow up with your school’s financial aid office and file a special circumstances request. The school will likely request specific documentation of your parent’s loss of income. At this point, they will do what they can to see if there are any adjustments to be made. However, sometimes the adjustment to the EFC isn’t large enough to warrant a student for additional aid. Make sure you are prepared for that. </p>
<p>My husband also lost his job in the month of June when we had (still have) 3 kids in college. He got severance which put that year’s income about the same as the prior year. One school we could not appeal until we had six months of current year’s income. Another not until October of that year. The other took our appeal in March but did not give as much as the other two schools. It turned out our income was about half that of the prior year. So a lot of schools probably wont give you much more until you can show that your income will definitely be lower. </p>
<p>Schools, will likely wait until they find out whether your dad gets another job. By the time you submit FAFSA after January 1, your dad could be fully employed.</p>
<p>If you are already in college, you need to speak with the Financial Aid office there, and ask for the Special Circumstances paperwork. This will allow them to review your situation, and change your aid package if they deem your situation merits that change.</p>
<p>The current FAFSA is for the current academic year…2014-2015. The FAFSA for the 2015-2016 school year will be available for completion and submission on January 1, 2015.</p>
<p>If your income is below a certain amount, your dad could be considered a displaced worker. But that amount is low…I think $50,000, but it might be $30,000.</p>
<p>It is possible…and hopeful…that your dad will find employment before January. </p>
<p>Did he receive any kind of severance package? That counts too.</p>
<p>There’s no direct income test for dislocated worker status. Dislocated worker status is one of the criteria that can kick in the simplified means test or auto 0 and those do have an income test of less than $50k and $24k respectively. So if income is above $50k, dislocated worker status is irrelevant.</p>
<p>AD…yes, that is exactly what I meant! Thank you!</p>