Severance and Unemployment =EFC $26951

<p>I have a question that I hope someone can answer. I was severed from my job in April '09. I have been on unemployment ever since and it doesn't look like I will be able to find a new job anytime in the near future. Because I had been with my company since 1994 my severance was pretty healthy (100k+). We live in the high cost SF Bay Area and I am a single mother of two sons, so as you can imagine, over the last 10 months that money has dwindled quite a bit. </p>

<p>When I completed my son's FAFSA I checked that I was a displaced worker. I am trying to figure out how these special considerations work. If the university is wiiling to work with me, will they base our EFC on my current income which is basically 22k in employment or will they just lower my EFC and say meet us "halfway". I am super confused on this process. It keeps me up at night because I am afraid to spend too much of our life savings when I am having such a hard time finding new employment, but I also want him to have the college experience I had. The both the schools we are looking at cost pretty much the same around $24k for Tuition, Room, and Board.</p>

<p>If anyone can offer any clarification, I would truly appreciate it.</p>

<p>Also, I know he can attend CC but that is our very last option.</p>

<p>Have you received FA award letters from these schools? You’ll need to contact the FA office and explain your situation and ask them for a special circumstances adjustment. Only the financial aid officer can do this and it will be up to them (within the guidelines) to determine what your EFC should be. Good luck!</p>

<p>I’m confused–if the schools are about $24,000 total and your EFC is $26,000 and change, couldn’t that mean that it will only cost a couple of thousand a year? </p>

<p>EFC is partly based on your long term savings, too, so it isn’t all about income. Is there any money in your kids’ names? That will count against them. Also, the father’s income weighs into this, right? Still, if you are still running short, it definitely makes sense to go to the FA office or at least write a very detailed letter.</p>

<p>^^^</p>

<p>What???</p>

<p>If the EFC is $26,000 and the schools cost about $24k each year, that would mean that she’d be expected to pay the entire amount - since her EFC is HIGHER than the COA. Where do you get the “couple of thousand per year”???</p>

<p>And…she’s a single mom, the dad’s income doesn’t get considered for FAFSA.</p>

<p>

The displaced worker question can make you eligible for special formulas in the EFC calculation if you meet certain income limits. Your income is too high for either. The cut offs are income <$30,000 for the automatic 0 EFC, and <$50,000 for the simplified needs test. You can ask the schools for a special circumstances adjustment because of loss of income. It is at the school’s discretion whether they award this or not.</p>

<p>

Yes you are confused. The EFC is the expected family contribution. As the EFC is more than the cost of the school the OP would not be eligible for financial aid (other than loans) and would be paying the full cost of the school.</p>

<p>YoungBeasly…</p>

<p>Are these private or public schools?</p>

<p>Did your son apply to any state schools that he could commute to?</p>

<p>OP, it’s a case by case situation. I am also displaced and the severance from early last year makes my income on this year’s FAFSA looks like I made more money annually than in twenty years. I had to pay more in taxes and took a ding on every credit that i was entitled to because the AGI looks so inflated but the money doesn’t last long when zip is coming in and of course my EFC is up over 10 grand from where it was the past two years when I was actually working. So far it doesn’t look like anyone has taken mercy on us for S2. YMMV of course, my yuck and double yuck is not only do we have basically no income we have two in college in the fall for the first time and I’ve been pounding pavement for a year now. We have a group of (well compensated but not working but diligently job searching for anything remotely possible) persons and it was a major, major bi**h at our breakfast last month as we’re all “older” with kids in college. It’s going to really hurt bad, my advice is to batten down the hatches and start crunching numbers. I told my oldest son’s fin aid director (who is a Michigan native so knows what’s happening in this sorry state) that I would come out to my son’s college, sleep on his couch and work in the dish room of the cafeteria in exchange for tuition for his hopefully last year…laughing while I’m crying.</p>

<p>No. I haven’t received a financial aid package from either school. He just received his acceptance letters. I am trying to be as proactive as possible.</p>

<p>Yes, we are looking at a Cal State and Howard University. He would have to stay on campus for either.</p>

<p>We had a similar circumstance. My husband received a buy-out, which was actually a polite lay-off with severance. We asked my daughter’s college for a special circumstances review, as we now have severely lowered income for the foreseeable future, and live in a very expensive city. This private women’s liberal arts college, that is very generous with grant aid for many other students, only granted us a minor adjustment on our EFC mid-way through the school year. Very disappointing, since they have a very large endowment and I suppose they view us as upper middle class. We are in the process of deciding whether or not our daughter will be returning next year.</p>

<p>The both the schools we are looking at cost pretty much the same around $24k for Tuition, Room, and Board.</p>

<p>Did your son get a scholarship for Howard? If not, the cost is higher than $24k per year.</p>

<p>Howard U
Tuition …$15,270.00
Mandatory Fee …$805.00
Books & Supplies …$2,000.00
Meals/Board …$3,068.00</p>

<h2>Room …$10,179.00</h2>

<p>Howard U …$31,322.00 Cost of Attendance</p>

<p>Plus</p>

<h2>Transportation…$1,944.00O</h2>

<p>Total…$33,266.00</p>

<p>Isn’t the CSU less than $24k for tuition, room, board, books?</p>

<p>Howard:</p>

<p>Tuition-------------15270
Mandatory Fee-------805
Meal plan-----------2524
Room---------------4526
Books---------------750 (generous estimate on my part)</p>

<hr>

<p>Total----------------23,875</p>

<p>I only considered the actual mandatory costs not Howard’s estimation of how much my son would spend on transportation or supplies. Also, I don’t know why Howard lists the dorms as 10,179. I checked the room rates for the actual freshman boys dorm and they are half of what Howard estimates in their COA. They also inflated the costs of the meal plans. I have no idea why they did that.</p>

<p>On the other hand, Northridge is in fact less expensive than 24k. It will be actually closer to 18k.</p>

<p>Tuition & Fees-------4882
Books-----------------750
Room& Board--------12714
Total------------------18346</p>

<p>One other thing I forgot…we are also waiting to hear back from UC Riverside. Their fees are below:</p>

<p>Tuition-----------------11655
Room and Board------11600
books---------------------600
Total-------------------24,005</p>

<p>We are leaning towards Howard. It’s my alma mater and I know it will be an awesome place for him to get a great education. Not to mention the amount fun he will have while there. My son didn’t have a high enough GPA or SAT scores to get into the more competitve UCs (3.2 and 1550/2400 SAT) and unfortunately with the budget cuts even the CSUs are far more selective this year. So of the choices on the table, I think Howard will give him the “most bang for his buck”. It is the most prestigious and selective of all the HBCUs, the social and culture experiences offered are unsurpassed, and the level of recruiting done at Howard rivals the Ivy’s for top notch diversity candidates. It is however about 6k more. So it will come down to who will be willing to work with our special circumstances appeal the most.</p>

<p>Hmmm…if the financial aid doesn’t come out as you need, might it make sense for him to defer college for a year?</p>

<p>^^^
That’s an idea…By then EFC will be lower.</p>

<p>Also, I wonder if the housing COA cost is high because the cost on Howard’s webpage is quoted “per semester” and not per year (although it’s still high)</p>

<p>Room at Howard is over 10,000, not 4526. You are probably looking at it as per semester. Every school I know of charges around 10,000 for room.</p>

<p>Howard U Housing…</p>

<p>The costs are per semester…They are lower than $10k, but they’re higher than what you’ve listed. Also, these prices are for the current year. Likely they will be higher in the Fall and so forth.</p>

<p><a href=“http://www.howard.edu/residencelife/documents/Room_Rates_0910_000.pdf[/url]”>http://www.howard.edu/residencelife/documents/Room_Rates_0910_000.pdf&lt;/a&gt;&lt;/p&gt;

<p>You might want to call them and ask.</p>

<p>Something seems wrong on the information. Did you have a 521 Plan for your boys? If so, how much is saved into that? Are there other college savings in your name or in your boys’ names? </p>

<p>Many schools don’t look at home ownership / equity (and its really iffy to be looking at that these days with a California resident), but did you happen to buy in SFO real low and have done well as respects real estate? </p>

<p>They can’t look at your retirement, but any other assets are fair game.</p>

<p>^^^</p>

<p>I think the problem is the big severance payout - over $100k plus her income up to that point in April (about 1/3 of a year’s income). </p>

<p>It sounds like there is only 3 in the home (only 1 adult), so with an income of well over $100k in 2009, the EFC will be high. I think with 2 adults in the home, the EFC would have been lower.</p>

<p>The rates for a freshman in drew hall in a double is 2263 or $4526 per year. In 2008 the same room went for 2114 per semester. I did speak to the office of residence life and they said that there will be a small annual rate increase. Either way it will still be under 5k. </p>

<p>With first quarter income, severance, and 8 months unemployment, my taxable income came to about 200k. My severance was actually closer to 140k. I also had taken a 401k loan a couple of years ago and while in my stupor over losing my career I forgot to pay the loan back w/i the three months so that was reported as income.</p>

<p>I have a nephew in college in Arizona, I raised him and continue to support him at school, I also carry him on my taxes. So I will actually have two students in college. I confirmed this with FAFSA. My retired mother lives with me as well. Although I can’t carry her as a dependent on my taxes, I can include her in my household.</p>

<p>Wow…you have a lot on your plate. You’re an angel to help with your nephew. :)</p>

<p>I don’t think you can count your mom in your household on FAFSA if she gets social security or retirement income. I think that’s what Kelsmom has said in the past (she works as a FA officer at a university). I think the point is that since a grandparent’s income is not included on FAFSA, so they can’t be counted as people that are being supported on the declared income. But, maybe I’m not remembering right.</p>

<p>I sure hope that you find a new career soon. You must be under an enormous stress. Have you considered relocating to find work in an area that has a lower unemployment rate. Can I ask what line of work you were in?</p>