<p>I'm reading a lot of people who are worried about their savings amount reducing their eligibility for financial aid.</p>
<p>I recently got laid off from a job and I'm seriously considering to go back to college full time (might be a good time now).</p>
<p>I am single, no children, no dependents, obviously no income. But I do have a good amount of savings.</p>
<p>Can someone please clarify if financial aid takes your savings into consideration even if you are unemployed?</p>
<p>Thanks!</p>
<p>When you say “laid off recently”, do you mean this year? Unless I’m seriously wrong, if you’re planning on filling out the FAFSA this year 2010, your income and assets will be based on financial information from last year 2009.</p>
<p>Are you over 24 or do you meet one of the other definitions of an independent student for FAFSA? If not, then your EFC will still be affected by your parent’s financial info. One of the questions on FAFSA asks if you are a displaced worker. If I remember correctly, answering “yes” may make you eligible for the simplified needs test (if your 2009 adjusted gross income is below a $49,999). Simplified needs means that your assets are not considered in the EFC calculation. Here’s a link to a document that will explain the definitions in detail:</p>
<p><a href=“https://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf[/url]”>https://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf</a></p>
<p>Thanks for the response and link.</p>
<p>It appears I would qualify as an independent, I am 26, made less than 50k. One issue however I had to file a regular 1040 return with itemized deductions instead of a 1040A (I wasn’t a regular w2 employee to file 1040a or ez).</p>
<p>I wonder if they would make an issue out of that. Anyone applied to FAFSA with a 1040 return (not 1040A)?</p>
<p>Yes, they would make an issue out of that. You can apply for federal aid using the FAFSA even though you’ve filed a 1040 but you can’t qualify for the simplified needs test unless you could have filed a 1040a.</p>
<p>Actually, the 1040A/EZ is not a requirement for displaced workers…I’m in the same position of having Schedule C income but still qualified for simplified needs. If you read the standard for simplified needs, the displaced worker question is in the same qualifier as federal means tested benefits and ability to file 1040A/EZ. You must satisfy ONE of those, and have income under $49,999. Disregard the fact that they’re only referring to 1040A/EZ when telling you where to find the AGI number. It’s poorly written but you can use the AGI from your 1040 form if you’re using the displaced worker qualification… You can verify this (as I did) by calling the FAFSA help desk: 1-800-433-3243.</p>