If this has been discussed previously, please point me the in right direction since I couldn’t find anything on this particular situation.
Filled out the FAFSA using 2015 info for taxes, 2016 info for investments and cash accts and 2017-18 # in household. Here is my problem - I own a business (very small, not much income, but only income other than a small amt of child support) and my 2016 income will be lower than 2015. But because I’m going from 5 to 4 people in my household for 2017-18, the the form is counting income generated 2 years ago but basing it on less people in the house for next year. So it “looks” like I am spreading more money around less people which isn’t the case at all. My EFC for the 2 that are in college is higher than ever before and I think it is because of this disparity - am I wrong? My assets have also decreased (not a lot of those either) so I don’t think that is what is causing the increased EFC, but I’m also a DS mom so maybe the new asset allowances have hit me particularly hard?
I’ve had a few turns around the rodeo so the FAFSA stuff is not new to me but this whole prior-prior year might just have bit me in the butt, unless I’m not understanding this concept correctly.
If you were previously single, the asset allowance shouldn’t matter that much. For most singles, it’s around $10k. The EFC should be similar to last year if the two kids were in college and your assets are about the same. If the 5th person you lost was another college student, then yes, the EFC is going to go up.
The income protection amount of a family of five versus four (2 in college) would be $5,000 higher. That could change the EFC a lot, even with same income.
Is the 5th family member a child moving out of the home, are you still going to support them > 50%?
It’s my oldest who is graduating in May and getting his own place so I will no longer be supporting him at that time. But will still have 2 in college. @Mommdc - that is the thing that is bugging me about this prior-prior business - I have to report what my household will look like for 2017-2018 but they are calculating my EFC off of income from 2015 which doesn’t look like that now. And it isn’t because of a huge change in my situation, I just had a poor income year in my business, so the colleges are not going to take that into consideration even if I ask them to review my FA.
So you are going from 3 in college to 2 in college? And from 5 in the household to 4?.
Yes, then your EFC would be much higher.
I know that quite a few people have lower 2016 income than 2015 income, but I still think that moving to prior prior year makes filing FAFSA easier since taxes are already done.
Have you asked the schools if they would take your lower income into consideration?
@mommdc - I have 4 kids and will have 2 in college forever, lol. I’ll have 2 continuously until 2021. I drop down to 4 in the household next school year. As soon as I have a clearer picture about how far behind I am from 2015, I will ask, but we are talking about an OOS public and a CC so I don’t believe they will be very receptive to helping.
@thumper1 - I think the above answers some of your questions, but my income level most likely would have qualified at least one if not both of my kids for some Pell and possible IL MAP (yes, I know, I’m not counting on them paying it, but it would be a bonus if they did). Using last year’s income with next year’s household took me completely out of the running. If I had been able to use 2016 income with a 2017 household, I probably would have qualified.
I think it is worth appealing, especially since you have two who might get pell. The situation is new to everyone, to every school, and no one really knows how they will deal with situations like yours. You may get lucky and get an empathetic financial aid officer who does see the the formula is not a one size fits all, that not everyone’s income goes up every year, and it doesn’t make sense in your case. You’ll have to submit the fafsa with the information it requests, and then appeal.
I appealed for two kids, and each school treated the information in its own way, so don’t be surprised with a split decision either.
Thank you @twoinanddone - appealing to the 4-year may yield some results, doubtful about the CC but there is never any harm in trying. Honestly, if I thought this might have been an issue I would not have busted my butt to get the FAFSA done so early/quickly - I only did it to get in line for IL MAP just in case the state decides to get a real budget done (hey, the Cubs are getting their miracle, I can hope, right? LOL!).
Getting this done sooner…or later would have made NO difference in how the data was entered. You would still have had the same info on this form even if you did it in January…or later.
@thumper1 - yes, I realize that which is why I’m kicking myself for pushing other things off and rushing some other things in order to get it done quickly. The MAP money runs out very quickly in IL (when they decide to actually pay it), so it is imperative to get the FAFSA done relatively soon after it opens. But in my case, it didn’t matter since my numbers put me in the “do not qualify” column. Hindsight is 20/20…