<p>Recently my employer announced the closure of the research facility where I've worked for 23 years. Since my DD is a high school junior, my husband and I have decided against relocating to another facility, which means I'm probably looking at a career change.</p>
<p>I'm ALSO looking at a big change in my salary. My family has always lived frugally, and my husband still has a job (with benefits), so I'm counting my blessings. I?m guessing that eventually, after some luck (or some retraining), I can find something paying about 40% of what I used to make.</p>
<p>My immediate question is this: my income is going to be crazily uneven for the next few years ? it will be artificially inflated by my severance pay, and then probably nothing for a year or two as I retrain. During this time my daughter will be applying to colleges (and for financial aid.) Am I right in assuming that we just fill out the FAFSA every year and keep schools apprised of our changing finances?</p>
<p>Applying for finanical aid varies from school to school. While every school requires the FAFSA (to determine one's eligibility for federal funds), some schools may request either the CSS profile or their own financial aid forms (especially if they distribute institutional need based aid). </p>
<p>without getting too drawn out FA is based on this premise:</p>
<p>Cost of attendance (tuition, room, board, books, misc) - EFC (expected family contribution based on the income and assets of both the student and the parent) = Demonstrated need.</p>
<p>Each school has a different concept as to how they meet demonstrated need.</p>
<p>there are so many different scenarios also to consider:</p>
<p>will D be looking at schools that meet 100% of demonstrated need (majority of schools do not). Even with schools that meet 100% demonstrated need, how is the aid pacaked (% grant/scholarship at vs. % self help -loans/work study). A school could virtually offer you nothing but a PLUS (parent loan) and will still have "met" your need.</p>
<p>Will you D be looking at schools that offer merit money? </p>
<p>Will she be looking at schools that offer a combination of merit and need based aid?</p>
<p>Most schools that do not meet 100% of demonstrated need GAP (you will have to fill the GAP the best way you can.</p>
<p>When your D applies for college sometime in the fall many for freshamn year, many schools will base your financial aid on your income and assets for the calendar year 2007. What you will able to do on schools that require the profile or their own institutional forms is explain what your financial situation is (no room on the FAFSA). You reapply for financial aid each year so yes, this year and until you severance package is paid out you income will be inflated however, once your salary goes down your EFC and FA will be adjusted accordingly.</p>
<p>hope this helps as a jumping off point. I am sure others will chime in.</p>
<p>Yes...you fill out the FAFSA each year for the following fall. If your daughter is a junior NOW, she will be applying to colleges for admittance to college in Sept. 2008, correct? That being the case, your income from this year, 2007, will be considered when you are applying for financial aid. The assumption is that part of the income you earned (including your severance pay) will be saved to be used on college expenses. In your situation, it would be good to also write a letter (when the time comes) explaining the difference in your income from the 2007 tax year to the 2008 one. I'm not sure how "artificially inflated" your income will be for 2007. If you are getting that huge of a severance package (that it might have exceeded your 2007 income even though you won't be working for better than 1/2 of that year), perhaps some of that money should be earmarked for college expenses at least that first year for your junior student.</p>
<p>Sybbie and Thumper: Thanks for the replies. I have been following most of the financial aid threads here at CC for a while, but I must admit that I wasn't as interested in them until I lost my job! (Nothing like unemployment to sharpen your attention…..)</p>
<p>Sybbie: we'll be looking at all kinds of schools and all kinds of financial scenarios. We’ve been saving for DD's college since she was born, so we're actually in a pretty good place, finance-wise. Prior to the lay-off, I just assumed that my husband and I made too much to qualify for financial aid, and we hoarded our money accordingly. Now, we’'l be making much less, so I'm more motivated to look at options.</p>
<p>Thumper: You're right about the timing. DD will be applying to school this fall (2007) for entrance in fall 2008. I was afraid that this year's income will be used for the FAFSA (as you said)…..so it looks as if those fears are justified. Oh, well. My severance will be pretty large (good package, and I've been there a long time), but we were planning to save it all anyway - partially to live on while I retrain, and partially for college. Believe me, I'm not complaining about the money – just about the complication to the financial aid forms. One year we'll look wealthy, and the next year we'll look poor…..</p>
<p>If it matters: DD is a good but not great student (by CC standards, at least. I think she’s wonderful….) Unweighted GPA of 3.7, ACT score 29 (taken once.) ECs are campus radio and Girl Scouts, a strange combination. Looking at urban schools in the Midwest and East (maybe south at Miami), preferably large and/or quirky.</p>
<p>In addition to Sybbie's and Thumper's excellent suggestions, you should contact each and every school's financial aid office and explain that you will have "special circumstances" that will not be reflected in the FAFSA. I would do this as soon as your daughter decides where she will be applying. Ask each financial aid office about their individual process for handling special circumstances such as yours - some will want to know the information upfront, before they make financial aid offers, others will want to make an initial offer but then be open to an appeal. Each may also have their own paperwork and documentation requirements (VERY important: the more documentation you can show, the better -- save everything in writing that shows that this change in financial circumstances was not your choice). I wrote an article about this subject on my blog which includes comments from actual financial aid officers, but CC management will not allow me to post the link. If you would like the link, PM me.</p>
<p>The thought that came to my mind was: is there any way you can received deferred compensation of the severance package by having some portion of it sent directly to your IRA?</p>
<p>Scout, the other thing to consider is - when you say retraining, what do you mean by that? What field or skill set are you considering retraining for, and could you go to college yourself full time or at least > 6 hours per semester as part of the intended retraining? I'm asking because if you do, that should cause a more favorable calculation of financial aid.</p>
<p>As some one who's been laid off from very good, high paying jobs twice in my life -- hmmmm, all in the last ten years -- my heart goes out to you. You're in for a rollar coaster ride. Depending on where you live, there will be lots of reasonable or appropriate jobs, or not. Depending on your age, there will be lots of interested employers, or not. Depending on your skills (both the ones you have and the ones you gain), there will be lots of opportunities, or not. And depending on your interview skills, there will be lots of offers, or not. (Being able to do the job has nothing to do with getting the job, IMHO.)</p>
<p>First time out, I was unemployed for only four months. The second time, it was 11 months. THAT one hurt a lot.</p>
<p>Good luck with your retraining, and your job search. Go on every interview you can get, whether you're interested in the job or not. You'll always learn something by going.</p>
<p>When you do get to applying, be sure to talk to financial aid offices about the package you will be offered in years 2-4. If your income goes down, with the severance missing, will they increase the package, I've heard some schools do not increase even if the need increases. I have no experience with this personally, but have seen warnings on this board that some schools give the most attractive package the first year!</p>
<p>Thanks for the suggestions and the sympathy.</p>
<p>I WISH I could defer compensation, but HR has already nixed the idea - looks like the severance will be in a lump sum distributed before the end of the year. And yes, DD is an only child, which does ease the finances a bit.</p>
<p>For latetoschool and VeryHappy - my previous career was as an organic chemist, which really narrows my choices in this geographic area. I am seriously considering teaching high school chemistry as my next career (hence the retraining, to get my certification.) My state has fairly strict certification procedures. One option - the one I'm favoring - would require a stint as a full-time college student myself at some time. The financial aid aspect of this sounds encouraging!</p>
<p>I am still interviewing for tangential-type jobs and may luck out. (Thanks for the pep talk, VH!) Something in me really wants to be a teacher, though. I'm keeping my options open..... How ironic would it be if my daughter and I were "freshmen" at the same time!</p>
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If your income goes down, with the severance missing, will they increase the package, I've heard some schools do not increase even if the need increases.
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<p>Just wanted to point out....my mom was actually in a similar situation my junior year. I believe she managed to squeeze in disability, severance, unemployment, and the new job's salary in one year...I know it was at least the last three of those. They were worried about the artificial inflation factor, plus the fact that my mom's new job paid less than the old one. I don't know whether they sent in special letters, but I do know that they hired a financial adviser to fill out the paperwork. I also know that my aid package did not change. The only extra thing I got was $1500 in work study money my junior year, but that could very well have been simply because the school's tuition was going up, not because they noticed our EFC going down. I don't know what the EFCs were for all the years but I suspect if it's not a really huge difference, they won't bother to change the package unless they meet 100% need. Disappointing. Our "gap" is larger than our EFC at this point. :(</p>
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I am seriously considering teaching high school chemistry as my next career (hence the retraining, to get my certification.) My state has fairly strict certification procedures. One option - the one I'm favoring - would require a stint as a full-time college student myself at some time. The financial aid aspect of this sounds encouraging!
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<p>I don't know if you're in my state, but I know that my state is currently revisiting some of its certification requirements for people like you, who are well-educated and have math/science degrees and are considered a career change into teaching. Given national shortages, surely we're not the only ones. So things may soon be easier than they are currently.</p>
<p>Some colleges and universities offered structured programs that give someone certification (and usually a Masters or something similar) in one calendar year of classes/student teaching. They are designed for people seeking a career change. Perhaps that's what you're already looking into?</p>
<p>And my state -- Connecticut -- has something called ARC, which stands for Alternative Route to Certification. One can get certified ovr the summer, or during the school year, on Friday nights and Saturday. It works for some people, and it's accelerated.</p>
<p>Actually, Hoedown, we ARE in the same state as you! (.. and now you can probably figure out who my ex-employer is...) Anyway, my current plan is to enroll in one of those accelerated Masters-with-ceritification-plus-student-teaching programs and be done with it all in one (very intense) year.</p>
<p>best of luck to you, but i have been in this situation, and my D college, told me they could offer nothing, since although my income dropped by 50%, it still did not qualify for any aid. Even after i have done my 2007 fafsa and taxes, i still have gotten nothing. i hope you fair better, but D school had me fill out the same forms 3x, lost a few of them, gave me a date for a decision and then missed it by 3 weeks. After a 10 calls into the fin aid office, they finally called back and left me a voicemail and said no. the school? Uva</p>
<p>Hey scout59, if you lived in the state in which my D attends college, I could offer you immediate part-time employment as an o-chem tutor! Seriously, if you do become a chemistry teacher, you could supplement your income by tutoring at the college level.</p>