Should I visit the financial aid office??

Paying for College
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<p>First of all, I am not a new poster. I've registered under a different name in an effort to maintain confidentiality. I hope I can get advice, comments and suggestions from everyone here. Sorry this post is so long</p>

<p>Based on last year’s income, and according to the EFC calculator, our federal EFC is 7200 and our institutional EFC is about 23,000. So, we got our package from my son’s first choice school which meets 93% of need and our EFC is $26,000 which sounds as if it’s right in the ballpark. </p>

<p>My husband lost his job 8 years ago and our income has been varied since then. We had 5 years of less than $40,000 in income followed by $80,000 in 2006. He lost his job at the end of last year leaving us with an AGI of $65,000 for 2007. He's been out of work and collecting unemployment for 5months and I fully expect that if he can't find a job by next month when unemployment runs out that he will take on a minimum wage job if necessary. This will leave us with an AGI of about $40,000 for 2008.</p>

<p>Our home is worth 350,000 (NY), and for 2007 we had AGI of 65,000
I’ve run the numbers for our fixed expenses:</p>

<p>Taxes, SS, Medicare (9717), Property Taxes (12,254- only 8000 7 years ago), Health Insurance (now that hubby is unemployed, and it’s no dental, RX and a 10,000 deductible – 7400),Medial expenses (anything that is under10,000 who knows???), gas electric water (5900), auto insurance (2000), homeowners (1626), phone cable internet (1620 – does not include cell phone costs of 1080 as I think this would be discretionary), student loan payments-mom 1700), summer daycare for youngest (952),school lunches (1080), annual school supplies for 2 youngest (200), life insurance (2400- probably discretionary), Groceries (150/wk for family of five 7800), Clothing (1500 for 5 people??? I think my husband and I spent about $50 each on clothes this year though), Auto Repairs and gas guestimate (3000), home repairs (1000). </p>

<p>Total expenses (without cell phone and any actual medical expenses and clearly no real discretionary expenses such as dining out, sports, vacations etc – we live as frugally as possible) 60,149 AGI 65,000 – 4852 avail. </p>

<p>No mortgage (and I’m wondering if when people put their mortgage on the CSS profile if most people include mortgage plus taxes since many don’t have a separate bill like we do, for that line I put zero), and I totally understand that we should be expected to draw from our home equity, but when you run the numbers there is no money left for mortgage payments. </p>

<p>I did send my husband’s layoff letter and unemployment info to the school (not sure if they considered it), and if you rework the numbers if he doesn’t find a job (remember, he’s 60) then our expenses put us about 20,000 in debt for next year. This means we would have to borrow $50,000 in home equity to live and pay for school. The following year we’d have to borrow more because we would have a mortgage. </p>

<p>So, I’ve presented lots of details – what do people think about me visiting the school and talking to the financial aid officers and trying to get our EFC below the current $26,000. Or do we pay $12,000 a year and send son to state school.</p>

<p>Also, I do realize that given next years expected income, EFC at both schools will be less. HELP I need advice……. Also, do you think my listed expenses for food, clothing and car seem reasonable???</p>

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<p>how much more do you want to get from the school? how do you know it won't be a loan and not a grant or scholarship.</p>

<p>even if your efc goes down next year there is no guarantee your remaining need will not be a loan offer from the school.</p>

<p>I would have my son go to the FAFSA only safety school I'm sure is on his list.</p>

<p>the school isn't going to care (IMO) about all your expenses.</p>

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<p>Sue</p>

<p>Very true. Right now part of his aid package includes $5000 in loans and 2500 in workstudy. I don't think I'd want him to incur a higher debt than that. I guess part of this post is related to the thread about how much debt are you willing to incur for a dream school. I think if his package was increased by about $4000 in grants I'd mortgage my home and go for it. </p>

<p>However, to be honest, when I told my son he would have to go to our state school I was more upset than he seemed to be. I kept saying "I'm sorry" he kept saying "really it's OK" He's always known that finances would play a part, but I worry that he's just showing a good front.</p>

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<p>the worse they can say is NO. </p>

<p>But you'll never know until you ask!</p>

<p>Also, do you want to spend your home equity when you are 60 years old (or at least your husband is).</p>

<p>Of course, realize that I could have made my son go to West Chester Univ here in PA for 1/3 of what I'm paying out of pocket for him to go to NYU - his dream school. </p>

<p>My luck I'll spend my life savings over the next 4 years and then get laid off (again).</p>

<p>hard decisions suck :-)</p>

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<p>Definitely go talk to FA office - emphasize that H is 60 and that it is difficult to find a job. But it sounds like your family has very severe financial problems, especially with younger children to support. You aren't being selfish to send the kid to the $12K state school if FA doesn't work out.</p>

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<p>What have you got to lose by having a face-to-face talk with a financial aid officer? They're not going to take away anything, so there's really no downside for you to the conversation. And you can often explain more anda clarify things in a conversation rather than in e-mail.</p>

<p>Definitely go.</p>

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<p>Thanks guys. I'm definately not looking for a "pity party" Until 7 years ago things looked fine. We always earned only slightly lower than the mean income for our area, but since my husband and I grew up poor we were very, very careful with money. We had money saved and certainly expected to have college money for the kids. Those "tough" years after my husband lost his job the first time ate away at our savings. One look at our property taxes and utilities tells a lot. </p>

<p>However, we were lucky we had that money at the time and that we didn't have to worry about losing our home. Right now we don't have a lot of consumer debt, and I don't believe my children want for much (except maybe the "dream school" and is that more of my want than his?) My oldest works and pays for most of his own things and has for a while. I feel bad that we've forgone vacations, but my kids are happy and healthy. </p>

<p>We have it better than many of the kids I've seen posting on this site. For that I am fortunate. And I'm a dreamer... Today I told my husband that if we pick the dream school and he gets an amazing job we may have to pay full freight. We laughed and said that would be awesome. </p>

<p>I'm considering visiting the school, of the expenses I've listed what do you think they will laugh at?? Believe me I can document everything.</p>

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<p>I agree with everyone else. Pay a visit to the finaid office and see what they say. Take any documentation of expenses with you (keep in mind that costs everyone incurs probably won't help you...as everyone has them...and what you noted above are expenses everyone has....but you don't have a mortgage!!). You are very fortunate not to have a mortgage!!</p>

<p>Go to the college and explain the job situation to them. Your husband's "earning power" for 2008 isn't really clear on the FAFSA or the Profile. Take copies of the lay off info with you...and copies of his most recent unemployment check and any copies of your most recent pay check.</p>

<p>You mention your husband's job situation. I'm assuming that the remaining income you note is yours. Any chance you can get health insurance through your employer at a rate that is less than what you are paying for the coverage you have (under their group plan)?</p>

<p>By the way...do you really spend $491 per month on utilities??</p>

<p>Good luck to you. Your son does have the option of his in state school.</p>

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<p>you may have better luck increasing income if you cant decrease expenses.
In our area many people are pursuing new interests after they have been laid off or forcibly retired after careers as engineers, executives ,etc.</p>

<p>My classmates in the Hort program are just as likely to be 54 as 24.
Working for yourself means you have a tough boss though.</p>

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<p>THumper, Sue,muffy, emerald chedeva</p>

<p>Most of the people that I was hoping would comment- thanks.</p>

<p>Thumper -
1. yes our utilities are that much - and thank goodness no mortgage with over $1000 a month in property taxes.... It's that Long Island New York life - The price of food, gas everything is so high. I wish we'd moved OOS when my husband lost his job the first time. </p>

<p>2.Yes, the income does include some of mine ($30,000 year), but there is no insurance available through my job. I actually think 620 per month is a bargain. My husband's job offered us COBRA at 1500/month. Of course it included everything and didn't have the ridiculous deductible, but we had to save money. </p>

<p>Chedeva, Muffy & Sue You're right the worst they can say is no. Just because I sent all the unemployment info doesn't mean that they considered it. So maybe I do have a shot at "change of circumstance"</p>

<p>Emerald
We actually considered my husband going back to graduate school, but that would only add to the expenses. Right now he's looking into a program offered by unemployment office to get a CDL license - But who wants to hire a 60 year old truck driver??</p>

<p>Thanks again everyone. It feels good to talk this through. ANd we do consider ourselves very lucky that we have the option of a state school and a son who is not complaining about going there.</p>

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<p>I don't know if 18 wheel truck driver would be a great career move, but local delivery trucks- like for a bakery or dairy, can be a nice change from a desk job & companies like people who can show that they are reliable and easy going. ( and speak English)
My Father in law, works for a local dairy, & he really enjoys it- it is actually very social as you get to know each of the stops & the people on route ( he delivers to stores- but some still do home delivery- good benefits as well)</p>

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<p>OK everybody I'm always disappointed when people don't post the outcome of their problem so I'm back to let everyone know how it went. </p>

<p>I visited the school on the 8th and spoke to the financial aid officer. I was armed with documentation for every expense that we have, documentation of my husband's unemployment and when it ends, as well as my income. </p>

<p>I explained that I thought that their original package was very fair based on last years income, but that we have had a change in circumstances. I spoke to her for about 45 minutes, gave her any documents that she asked for and when I was leaving she said that she'd try to get a new package out to us by the 15th. She also explained that when they adjust packages based on "projected income" they ask for tax forms to be submitted in January so they can make any adjustments if the actual income is higher than the projected income was. I thought this was very fair.</p>

<p>Today I checked the status of my son's financial aid and it has increased by $4000, making our out of pocket costs about $22K instead of $26K. Basically, I think they still factored home equity into the equation, which is certainly understandable. What is very strange is that they lowered the school grant by about $2K and gave us a pell and an SEOG. I had no idea that they could offer us a Pell when our FASFA didn't qualify us for one (but if our income stays as is, we will qualify next year)</p>

<p>My son has always know that cost would be a factor in chosing the school he would go to, and has not shown excitement or disappointment at acceptances or rejections. </p>

<p>Anyway, a few hours ago we explained to our son that although the costs are still more than the State school we would be willing to go for it. The smile on my son's face was so amazing that I wanted to cry. We discussed what he would be expected to contribute (he's always worked). We decided he's paying 1K each semester plus books and personal expenses (total over 4K per year) His response was "that's all?" (God I love that kid). Then he followed it up by saying that the only bad thing is that he's going to feel guilty for the next 4 years. I assured him that he should not feel guilty. </p>

<p>Thank you everyone for all the information I have gotten from this board for the past year.</p>

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<p>momwith3...thank you so much for the update, and I'm so glad this worked out for your family.</p>

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<p>
[quote]
I had no idea that they could offer us a Pell when our FASFA didn't qualify us for one

[/quote]
The way a special circumstances adjustment works is that the financial aid officer uses the information to go into your FAFSA and adjust your AGI. That is what happened with us last year when we had large medical expenses and loss of income - the finaid officer lowered out AGI on FAFSA by the amount of the medical expenses (adjusted down for an amount already included in income protection allowances) and the loss of income which decreased our EFC. if you go into your FAFSA and look at the latest one you will probably find your AGI is not what you entered.</p>

<p>Thanks for the update - it is nice to hear updates - i always wonder.</p>

<p>And I am so glad it is working out for your son - brought a little tear to my eye when you talked about the smile on your son's face :)</p>

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<p>"Then he followed it up by saying that the only bad thing is that he's going to feel guilty for the next 4 years. "</p>

<p>Actually, that's not such a bad thing. I remember feeling guilty for my giant financial aid package and for what my parents paid back when I was in college. It helped me appreciate the whole experience a lot more than I might have otherwise. Sounds like you've got a great kid here!</p>

<p>Good luck to all of you.</p>