Outline of Your Family's Monthly Expenses?

Parents Forum
1

<p>I got a letter from ND FA saying that I should send a few things.. but I sent most of them in, except the "Outline of your family's monthly expenses .. " Where did this requirement pop up?</p>

2

<p>This is a request by the college for a pro forma disclosure of your family's monthly cash flow. Money in, money out, money saved, and money borrowed.</p>

3

<p>We got the same letter from ND- stating forms were missing and a monthly breakdown was required. However, we hand delivered all tax and other forms to the financial aid office early in the year. When questioned about this, they checked my d's file and said nothing was missing and stated that they also would NOT need a break down of monthly expenses. I suggest you call the FA office and check with them.</p>

4

<p>Does any one know what they are looking for on these? For instance, if you are self-employed, they are very difficult to do- other than some basic expenses, everything else is subjec to incoming $$- better meals or cheaper ones, etc., based on the actual income.</p>

<p>Is it better to show how amazingly frugal you are or to show average, or hopeful?</p>

5

<p>It’s better to show what it really costs your family to live. For parent income, FAFSA focuses in on the parent’s adjusted gross income (AGI), which is line 36 of form 1040, line 21 of 1040A, or line 6 of form 1040EZ. FAFSA then subtracts a limited number of standardized deductions. For example, there is the income protection allowance deduction. For a family of 4, the income protection allowance deduction is $21,330. This is the amount that FAFSA believes a family of 4 needs to clothe, house and feed itself for one year. This comes out to be approximately $1778 per month. I don’t know your situation, but I live in LA and own a home and the standardized income protection allowance deduction is fantasy. If by showing your actually monthly expenses add up to more than the standardized amount, maybe you’ll qualify for more aid. I’d include any and all high expenses, like medical, but forget about car payments or credit cards. Financial aid officers don’t care about these types of expenses.</p>

6

<p>An item list:</p>

<p>Mortgage or Rent
Medical - visits, drugs, mileage, etc., co-insurance
Life Insurance
Health Insurance
Food - groceries plus house supplies plus money spent to eat lunch at work
Utilities
Telephone
Health Appliances (e.g. assists)
Tutoring for special needs</p>

<p>These are the areas that family courts look at for key expenses when doing a budget analysis of how much a non-custodial parent should pay for child support. After these, you should also add (moderate) amounts for car payments, cable TV, entertainment and other 'non-necessities' that most families spend money on - but keep that on the lean side, e.g., if you put $500 per month for entertainment, that would probably be added right back in to what you could afford to give the college.</p>