My parents paid some of my bills (household is just me & D) in 2015 as I started an independent contractor job & had no steady income. They gave me $9k initially as a gift, then more later in the yr & said it could be a gift or I could pay them back in a few yrs when I started making $, they didn’t care. My income on taxes, FASFA & CCS wasn’t high enough to live on so the school is asking for a list of income & expenses or a letter stating how I had $ to live on. I only put the $9k on the form as it was a gift, which is income, the rest I’d like to pay my parents back so I see it as a loan, which isn’t income, is that right? That’s why aindidnt mention it on any of the forms/tax return.
How do I word this for the school? I don’t have payments to my parents so I don’t need to put it down as debt I guess. The school needs documentation for loans so I could have my parents write a letter saying it’s not due for several years or a certain amount to be taken out of each paycheck starting in 2 yrs, something like that? (I get paid in lump sums)
To complicate this, I had a couple of rough financial years prior & also had a 1099c for that year (cancelled debt from credit card company). They know that cancelled debt income (which is on my taxes so they see it) isn’t real income I used to live, right?
If anyone has any thoughts I would appreciate it! I am very, very bad at math & dealing w/ all these #'s is confusing! The school says they are need blind, fyi. I hope all this makes sense! I got their email asking for all this yesterday & have been freaking out as we really, really need aid!
A gift isn’t income. It’s a gift. And normally a loan isn’t income, either. If you want to make some of the money that your parents gave you in 2015 a loan, and the school is requesting loan documentation, you’ll need to draw up some papers. But is sounds like it really wasn’t a loan, if your parents didn’t care whether it was paid back or not. It sounds like 2015 was an anomaly, right? If your parents didn’t help you in 2016 and won’t be helping you in 2017, explain this to the school. Professional judgment may come into play for the money that your parents gave you in 2015.
Money to parents is a gift and won’t count on FAFSA. It is NOT income. If the money were given to the child, that would be different, but it was given to YOU to pay bills or whatever, which is fine.
If the money is a loan from parents, then tell FA that.
@cloudysmom I’ve seen your posts and I’m concerned that your DD will not have affordable choices. She’s OOS for UMW and it won’t give her much. And fed aid (FAFSA app) will not give much either.
What are the NPCs telling you?
Did your DD apply to ANY schools where you know FOR SURE that you have ALL costs covered?
I know that she was heartbroken over W&M, but that may have been a blessing because W&M doesn’t meet need for OOS either…and certainly not for transfers (which she is considering later).
If you are the student, then you had money paid on your behalf by someone who’s income is not on the FAFSA.
If the child is the student, then mom has money but student does not.
And, what BelknapPoint said is very important: if 2015 is an anomaly, make it clear what your financial situation is for 2016 and going forward.
Thank you all very much! First - I was told by an attny that a gift IS income, he doesn’t do that sort of law & is a family friend I ran into so maybe he’s wrong? My biggest issue is how do I word this to the school - do I say it’s a gift or a loan that I don’t have to pay back for many years? I need to show enough $ to have covered my bills - how do I divide it up? I already said $9K was gift, do I have my parents say it all was a gift or or just the rest a loan? I am so upset!
They want me to also list all bills. The form they sent even asked for what I spent on food & clothes in 2015, I have no idea! I emailed her back 24 hrs ago for some clarifications but she has not responded. She gave me a deadline of 2/10 but I want it done soon!
They helped me some in 2016 as well but not as much.
@mom2collegekids - thank you, yes, I have been posting about this & other things deciding on schools. That is why all the help on the other thread was so great - after reading everyones advice I took a hard look and it seems we are either instate or out of state private with aid. D got into Roanoke w/ the merit scholarship of $19.250/yr and is going to their scholarship competition 2/20 to hopefully qualify for more, (if she doesn’t get in ED at UR). They said they will award need based aid after they see what she is getting in merit aid. The school seems doable & we can drive her there 6.5 hrs so no need to fly her so travel is cheaper. W&M would have been hard but my parents have $30K in a college savings plan & her other grandmother recently said she could contribute $14/yr each year, perhaps increasing each year but $14k the 1st. I want to spread the $30K over 4 yrs but if she got into W&M we would have used much of it her 1st yr. Why did you say you didn’t think FASFA would give her much? She qualifies for a Pell Grant and Stafford loan which together total $12K I think, do they give anything on top of that? I don’t really understand what FASFA gives. Our EFC is 00015
This school I am talking about is University of Richmond, they are suppose to be need blind so not sure why they are asking me all this. W&M never asked anything when they denied her & Roanoke never asked anything when they accepted her. Could it be a good sign?
She applied ED2 and we hear results 2/15. It’s a bit of a reach but private so not bound by the VA in state rules, her GPA is good, 4.3 w and her spider essay was fantastic, really, really great so if she gets in we assume it will be due to that. We don’t have much hope but they say they meet 100% demonstrated aid and that is what I am trying to do now - demonstrate it, lol. I just am confused as to how to do that best!
I am the mom, it’s my parents that gave me $ to live on for me and my D. Please help if you can, thank you!
The only thing the FAFSA does is determine her eligibility for Federal aid.
If you have an EFC of 0015, this means that you will be eligible for a Pell grant and a loan of $5500 ($3500 will be subsidized)
University of Richmond distributes their institutional aid based on the CSS Profile & the Non-custodial profile. You must submit the Non-custodial profile (if her non custodial parent is alive) or request a waiver.
It can be risky to pick a school based on promises others have made to help pay (such as grandparents). They are not obligated to pay and could change their minds if their own circumstances change and they feel they need the money for themselves.
He’s wrong. Income is either money earned through services performed (earned income) or through investments (unearned income). A gift is neither.
You tell them what it is, not what you think they want to hear or what will get you the most financial aid. Only you can figure that out (maybe with help from your parents); asking on this forum won’t do you any good.
It’s not any kind of sign as far as admissions goes. Need blind means that the applicant’s financial need is not considered in the admissions process. What you are dealing with here is a financial aid situation, not an admissions situation. U of Richmond is asking you all of this so that they can put together an accurate financial aid package that meets the student’s need.
@sybbie719 Thank you, yes he filled it out but he won’t help pay for college at all. He hadn’t seen her in 5 yrs & pays very little support. If I fly up to MA to take him to court he purposely doesn’t appear as he knows I can’t afford to fly (from SC) back & forth so the support is only paid now & then. I cannot enforce it so his income will really screw up my aid as well. It’s all a mess.
@BelknapPoint But that’s just the thing, I am telling them the truth & what is real but my parents don’t care, they left it up to me so ai have to pick a way to list it, so it is up to me, that’s why I need advice. I don’t understand this financial stuff at all.
If a gift is not income, is that good? Imdont even know if that’s good or bad. None of it makes sense to me.
I assumed it didn’t mean anything that they were asking but a friend wondered why they were concerning themselves in these details, it’s xtra work for them, if they were going to deny her? Seems smarter to only go through this with students they want to admit. I was told by UR last month that need blind meant they picked the students, then handed those apps off to FA. I assumed they were just getting their ducks in a row IN CASE she were admitted as they have a tight turn around time ED.
It is verification of insufficient income. Just answer as best you can estimate.
If your parents are US, the gift $ is not legally income, but is a source of funds for FA is all. They know you can’t live on nothing, so they verify how you paid for stuff (gifts versus a $1m trust you forgot to disclose;)
^a loan can become income I believe, if it is later forgiven. Similar to the income mentioned in your first post from cancelled debt reported on a 1099c.
What do you all suggest I do? Should the entire thing be a gift or divide it up into a loan somehow? My parents don’t care, they left it up to me. If it’s a lona UR wants documentation so my parents will just write a letter stating I don’t have to pay blank amount back for 3 yr os whatever many years I want. I am trying to tailor this to look best as I have to classify it as something and my parents don’t care.
Unfortunately FA is d based on the ability to pay, not what one wants to pay or think that they should/should not pay. If you know that your ex won’t pay, I think it would be in yours and your daughter’s best interest (also for the sake of peace and no sleepless nights) to put together a list of schools where his income will not be considered.