<p>OK, I need some advice... My wife and I have a good family income slightly over $100K a year combined. I am a high school teacher and I make $45K a year. My wife was an administrator but recently changed jobs (she will start her new job on Monday) and took a decrease in pay of about $20K. We will still have a combined income of $105K but am concerned that when we fill out the FAFSA, it will show that we make $125K. I realize that we make a good living but would still like to qualify for any aid/scholarships for my son and was wondering if there is anything we can do to show our decrease in income? My son has great grades (4.0 ave), an ACT score of 34, and is currently ranked 2 in his class of 440 students. I am hoping he can get some help since my other son will be graduating one year later and I will have two in college. Also, his dream schools are all pretty expensive over $50K in tuition. Any advice would be appreciated.</p>
<p>When you fill out FAFSA (next January, assuming your son will be a senior in college this fall), you will enter your adjusted gross income for 2010. Whatever that number is, that’s what you enter. It probably won’t be $125K if your wife’s income wasn’t $80K for the entire year, right? But it won’t be $105K either (although for 2011 it might be). FAFSA will subtract from your AGI an income allowance, an employment expense allowance, FICA, taxes, etc, to come up with a number for “adjusted available income”, which is what will be used to determine your EFC. You can do the calculation using various online calculators. Be sure to be sitting down when you do so (speaking from experience 
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<p>You might be eligible for some need-based aid from private colleges, but be cautious with your expectations as some might give you loans rather than $$s.</p>
<p>Be sure that among your son’s dream schools are ones that give good merit aid for his outstanding grades and test scores. Also be sure he’s applying to (and is willing to attend) one or more schools that you can comfortably afford.</p>
<p>And remember too…colleges assume you will be paying for costs in three ways…past income (savings), current income, and future income (loans). The amount on your 2010 taxes will be put on the Fafsa in Jan 2011. At most schools, you will likely not qualify for anything but a Stafford loan.</p>
<p>Thanks for the help.</p>