<p>These are more fin. aid questions, but I definitely figured that parents would be better able to provide answers. Within the next year, my mother, who is a self-employed CPA, could POTENTIALLY lose a third of her income. That loss, coupled with a lifestyle change and strategic expenses, could place us in the 30-40 K income bracket. She has been through FAFSA and all that with my sister once before, but I am a little dubious of her ideas. According to her, FAFSA will show no applicable income, and it will reflect significant financial need.</p>
<p>Don't many colleges require the previous year's 1040 forms, and wouldn't that show old income which is no longer applicable? And also, would it take a year for the new figures to take effect in FAFSA, too? I will be applying this fall and thought FAFSA was due a few months into the new year at the most.</p>
<p>My parents have been separated for over 7 years, and my father (N-C) makes more money than most doctors but is unlikely to contribute a cent to my college education unless forced; am I right in thinking his income will affect my aid?</p>
<p>The first schools that popped into my mind when my mom mentioned her figures were the ones that claim to meet 100% of need, especially Harvard, since, like 90% of CCer's, I received their viewbook and app. with the new financial aid rules. How exactly do they handle their aid at that income level? Is it strictly gift aid or something that needs to be paid back and will result in enormous debt?</p>
<p>Would such a low income combined with residency in the midwest throw me into an underrepresented bracket of candidates? (answers to this question may result in more questions)</p>
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<li><p>If you get in, most of the prestige institutions will meet need (with grants, loans, workstudy, and summer work expectation) AS THEY DEFINE IT. This definition can vary quite widely from institution to institution.</p></li>
<li><p>Your father's income will definitely count (unless you can find a loophole that very, very few have been able to find.) The fact that he doesn't "want" to contribute will not be considered in the least. Chances are if he makes more than $150k a year (coupled with your mother's income), you will not receive one penny of grant aid, and likely not even be offered a loan. The school will require his 1040 forms in order for you to be considered. I know that's bad news - if anyone has a different take I hope they'll post it.</p></li>
<li><p>Colleges can and do account for changed situations. Happens all the time. The fin.aid folks are professional people, and generally speaking know what they are doing, always, of course, from the point of view of the benefit of the institution for which they work.</p></li>
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<p>Things that will effect your aid include both parent's incomes and their assets including equity in homes. In most states you can not force a parent to pay for college. It seems less than likely that Harvard would consider the child of a high earning doctor and a CPA as they would someone from real poverty.</p>
<p>oh oops...sorry my analogy about my father's income wasn't very clear. He isn't a doctor; he's a self-employed actuary, though I doubt that much changes your comment, zagat--it's just for the sake of clarity. In addition, he is VERY adept at hiding his income, and the amount that he actually makes will not show up.</p>
<p>Thanks, though; BTW, I'm looking at colleges more along the lines of Notre Dame and universities in Indiana, not places like HYP-Etc.</p>
<p>What matters is what is on his 1040, which they will require, as well as information about his savings accounts, non-retirement investment funds, and his home equity. If he has a $20k/yr. income and lives in a million-dollar home, they are likely to notice. ;)</p>
<p>If you plan to matriculate in fall, 2006, you can use your 2005 income taxes (to be filed with the IRS before April 15, 2006) in the financial aid formula. If your financial situations changes while you are in college, your aid will be adjusted.</p>
<p>I've never met a self employed actuary, so chances are your dad makes a salary it would be hard to hide. Unfortunately, many parents would prefer that someone else pay to educate their kids. Most colleges don't let this happen and the likely victim is the kid who ends up at a financial safety. Try to talk to your dad.</p>
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If he has a $20k/yr. income and lives in a million-dollar home, they are likely to notice.
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<p>The IRS would be interested in this also. Unfortunately, I have read of parents that refuse to give their financials to FAFSA and their children suffer. How sad.</p>
<p>Michelle - look carefully at what information schools require for financial aid -- a college that relies exclusively on the FAFSA will not consider your father's income. Many state universities are in that category, as well as many less-selective private colleges. Those colleges tend also to give financial aid packages that are more weighted to loans, and they may not give 100% of need .... but then if you are one of the top students in their applicant pool, they may be surprisingly generous. So look very carefully at your safeties -- they may be "safe" in more ways than one.</p>
<p>I don't know about Michele's dad, Zagat, but an experienced actuary can make a good amount of money as a consultant and expert witness for trial lawyers. An actuary who was well respected and very much in demand could be kept fairly busy.</p>
<p>On the other hand, anyone working with lawyers doing litigation will have quite a paper trail attached to every dollar they earn, since the lawyers turn around and bill their clients for every dollar they spend on experts, and habitually try to assess the opposing side for costs when they prevail in court. So not much "hidden" income in that line of work, though there may be a lot of perks (travel, dining, being put up in nice hotels,) - that come under the wire as far as income.</p>
<p>Ditto Calmom -- I had the same thought. But even the perks might have a pretty extensive paper trail (e.g. 1099 forms for expenses that are reimbursed).</p>
<p>calmom...you've got it quite right about my father. He has been an expert witness, travels, and is very well-reputed.</p>
<p>From what you have all told me, if the colleges ask for that noncustodial parent supplement in the fin. aid info, I'm sunk. And if they only want FAFSA, life is grand?:)</p>
<p>I wouldn't say life is grand, but at least you don't have your father's income added into your EFC. So let's just say it is more likely to be manageable.</p>
<p>MissMichelle, what is the extent of your contact with your father? Have you had conversations about college? Usually all the private colleges want fafsa as well as their own financial forms and a noncustodial financial form filled out. What state are you in and are you satisfied with going to your local state U?</p>
<p>My contact with my father is cordial at best. In the past, everytime I mentioned college, he scorned me and put down my achievements. I live in Indiana and so have some very good opportunites in terms of state universities and grad schools. If I could have my wish, I would truly like to attend Notre Dame--that will, of course, only happen if I win the Lilly Endowment Scholarship. I will apply at least to IU and Purdue, especially since my career goals are in medicine, either human or critter.:D</p>
<p><em>sigh</em> Re your father's comments, I've seen this too many times, and it always makes my blood boil. How/why can a parent say something like that? It's just unfathomable to me. Aaargh. </p>
<p>Anyway, I hope this all works out. Indiana does have some outstanding public colleges and universities, and will serve you well in a pre-med or pre-vet curriculum</p>