parent laid off, need financial aid help!

<p>My dad was recently laid off, and my mom has been trying to start her own business, but it hasn't taken off yet. So basically, my family has no source of income anymore. I know nothing about financial aid, because we've always been able to pay for college, and we didn't qualify for anything need based. But that has currently changed. I've been researching about aids and loans, and the amount of information is dizzying. I'm not sure where to start, in terms of getting information relevant to my situation. </p>

<p>All I've found is that financial aid takes into account the income of the previous year, so it's unlikely we'll get anything if I were to fill in a FAFSA this year. My dad got a pretty good package when he was laid off, that gives him 6 months of income. However, his field is also very specialized, and he's not as young anymore, so especially in this economy, it's unlikely he'll find another job anytime soon. </p>

<p>Basically, I'm asking, if there anything we can do to help pay for school, that can immediately take into effect (otherwise, we're going to have to sell our house). I know there are loans available...what are the best ones to look into? Also, is there any way to get the school or the government to recognize our current situation, as opposed to looking at last year, when we were making a lot of money. What are my options, right now? Where are the most reliable resources to get more information? Anything would be helpful.</p>

<p>I'm currently a 3rd year at UC Berkeley (I'm in state), if that helps. Thank you so much!</p>

<p>If your father was laid off, he will be able to check off the "dislocated worker" box on the FAFSA. This will allow him to be considered for the simplified needs test or automatic 0 formula, depending on how much money he made in 2008. You can contact your school to find out how to get special consideration if he was laid off partway through the year ... you'll want his "new" income to be used in the formula, if possible.</p>

<p>my husband was given notice that he will lose his job June 30, 2009. So do we put him down as a dislocated worker on my daughter's FAFSA since he was already given this notice?</p>

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<p>Kelsmom will have to clarify...but I would think the answer is NO...you cannot put this down unless the person already doesn't HAVE a job. The reality is that your husband still HAS a job, and a salary, etc.</p>

<p>I think thumper is right - I don't think you can do anything until your husband is actually unemployed. And each school probably has their own policies on this. At our S's school, you must be unemployed for ten weeks before you can even request special consideration.</p>

<p>On the instructions it does say you can claim dislocated worker status if you have received notice you are going to be laid off.</p>

<p>
[quote]
In general, a person is considered a dislocated worker if they meet
one of the following conditions:<br>
• They have lost their job.<br>
• They have been laid off or received a lay-off notice from their
job.

• They are receiving unemployment benefits due to being laid off
or losing a job and are unlikely to return to a previous
occupation.
• They are self-employed but are unemployed due to economic
conditions or natural disaster.<br>
• They are a displaced homemaker. A displaced homemaker is
generally a person who previously provided unpaid services to
the family (e.g., a stay-at-home mom or dad), is no longer
supported by the husband or wife, is unemployed or
underemployed, and is having trouble finding or upgrading
employment.<br>
If a person quits work, generally they are not considered a
dislocated worker even if, for example, the person is receiving
unemployment benefits.

[/quote]
</p>

<p>It may not make too much of a difference. The dislocated worker question only seems to be an additional way of qualifying for simplified needs (which still requires an AGI below $50k) and automatic 0 EFC (which still requires an AGI below $30k).</p>

<p>I am praying for everyone who has lost a job during this terrible economic time!</p>

<p>Thanks Swimcats...that is good info to have. But I will say...I find it odd. Getting notice and actually LOSING the job are two different things. Are severance packages considered in this thing? I suppose that would just add to the income thus possibly putting someone over the top income wise for the AGI.</p>

<p>You ladies know about as much as I do ... we do not have clarification yet on how some of the changes will actually work. I am sure the powers that be in my office are talking to other aid offices to try to figure out what is what. One thing I know for our office is that we will not adjust income until it actually happens. However, other offices may do things differently. Check with your school.</p>

<p>I agree it seems odd. </p>

<p>But as the only impact in the formula seems to be for the simplified needs and automatic 0 it doesn't really seem it will help many people.</p>

<p>Actually, it could help people who get a large severance or buyout package, if the money is treated as an asset rather than income (and assuming the job loss yields a low enough estimated income for the year). </p>

<p>The thing is, though, that the government does not provide set guidelines for handling job loss. For example, the person who is laid off in February might get another job in June. If we estimate his yearly income using the unemployment income, the family might get Pell ... but then they might end up with a pretty decent income that year, after all. This is a tough call.</p>