<p>I have a basic question. My daughter is a senior this year and applying to colleges now. When applying for aid will I be using the 2007 tax return or the 2008? My husband works as a consultant and his income changes drastically from year to year. Example: 2006-$40,000, 2007-$150,000, 2008-$60,000(est.). If we have to show 2007 income it will not reflect our true financial picture. Can we income average somehow?</p>
<p>You'll fill out the FAFSA on or after January 1, 2009, and use your 2008 tax return. If your daughter is applying to schools that require the Profile, you'll fill that out this October with estimated 2008 income.</p>
<p>Forgot to mention, she is applying ED to Cornell. The app. along with financials have to be in by 11/1. Can we give 2008 estimate for this also?</p>
<p>The schools will want you to do the best estimates you can for your 2008 income for the school year 2009-2010 FAFSA and Profile. No you cannot income average. For the ED application, you will complete the Profile using your best estimates for the full 2008 tax year.</p>
<p>You need to check to see what Cornell wants from you. Some schools require two years of tax returns be submitted (for this coming year, that would mean 2007 and 2008). I have no idea what Cornell requires, but I suggest you check.</p>
<p>Another thing to consider...you will be applying for need based aid annually. It looks like your 2008 income would be sufficiently low to have your daughter qualify for significant need based aid (of course, I'm saying that without knowing anything about your assets...home equity, savings, CDs etc). Next year, for example, if your income for 2009 goes back up into the $150,000 range, her need would significantly be reduced. In other words, her need based aid would likely be reduced. Of course your income would be higher. BUT the real question is...are you prepared for an increase in the EFC for your daughter should the family income increase? In other words, would you be able to pay increased costs for her education? It's fine to get great need based aid for one year...but what happens if that is not the case in subsequent years?</p>
<p>We have no savings, other than retirement, as we have been stuggling to pay bills. We do have about $350,000.00 worth of equity in our home. We can get by on $60,000.00 a year, then if our income goes back up to $150,000.00 range we would have the extra to pay for College.</p>
<p>Cornell is a Profile school, I believe. They use home equity in some way to compute institutional financial aid awards. I don't know their formula and I don't know if they have any home equity protection...some schools do. If they don't, there will be some sort of expectation that you will be able to tap into your home equity to help with college expenses.</p>
<p>Of course, with the mortgage industry the way it is right now, I'm not sure what that will mean in the financial aid world as we move forward.</p>
<p>Thanks Thumper. My newbieness is showing. What is a Profile school and what is home equity protection?</p>
<p>This came off of the Cornell Website, but it looks like it has not been updated for this coming year's applicants. That means that Profile is due November 1, 2008 (you need to check with Cornell to be sure this is accurate), and the tax returns you would need to send by November 1 would be the 2007 ones. When you finalize your financial aid, you will send the 2008 taxes.</p>
<p>I wonder why these websites haven't been updated yet??</p>
<p>Please check the dates and deadlines with Cornell. Also, remember that Cornell will compute your need based aid, and if your child is accepted ED, she will be bound to attend. Why is she applying ED (it sounds like financial aid is a consideration)?</p>
<p>Applying for Aid</p>
<p>Prospective Students</p>
<p>Step 1: Complete Online
08-09 CSS PROFILE
items are due November 1, 2007.</p>
<p>Step 2: Send to Cornell
2006 Federal Parent Tax Returns. Please include all schedules and W2s
Cornell's Freshman Financial Aid Application
items are due November 1, 2007.</p>
<p>Step 3: Your Aid Decision
Your financial aid decision arrives in mid-December
Send your acceptance coupon and deposit by January 7 </p>
<p>Step 4: Finalizing your Aid Package
Send 2007 Signed Federal Parent Tax Returns to Cornell's Processing Center. Please include all schedules and W2s
Send 2007 Signed Student Federal Tax Return and W2s to Cornell's Processing Center. If not required to file, please submit a signed non-filing statement </p>
<p>Complete the 08-09 Free Application for Federal Student Aid (FAFSA) online
items are due November 1, 2007.</p>
<p>Step 5: What's Next?
Complete the verification worksheet if you were selected for federal verification
Sign your loan promissory notes & complete Entrance Counseling online in July
Research and apply for any alternative loans in July
Mail any outside scholarship notifications to the Office of Financial Aid and Student Employment
Start your on-campus job search in August</p>
<p>Cornell is her first choice and I believe best fit for her. ED will give her a better chance of getting in from what I have been told. We will take out home equity loan on our existing $150,000.00 line if necessary. I am hopeful that next year my husband will be back up to the $150,000.00 to $200,000.00 income range. We are so used to living on a very small income now that we can just bank the extra income for her school and be ok.</p>
<p>bijou3owl, the Profile refers to another financial aid form called the CSS Profile that some schools (mostly private) require from financial aid applicants.</p>
<p>When my son applied ED last year, we had to follow pretty much the same instructions as thumper has posted. By Nov. 1st we had to submit the Profile using tax figures from the previous year and estimates for the current year. After he was accepted we received a tentative financial aid award.</p>
<p>After January 1st we had to file a FAFSA, and could also submit to the college any changes to the estimated numbers on the Profile we'd previously filed. In March or April they sent us a final award based on the definitive numbers.</p>