<p>My wife and I both took early retirement last year. Therefore, we have no income, but only assets that we draw off.</p>
<p>My D is about to start in Fall of this year as a Freshman. I haven't done any research around if there is something that now makes Aide or Incentives more of a possibility then in our previous two income world.</p>
<p>I thought some of you Financial Aide experts on this page might have some comments.</p>
<p>Thanks,</p>
<p>FAFSA only applies to fed aid programs (Pell grant, Stafford loans, work study). FAFSA looks at 4 factors: parent income, student income, parent assets, student assets. A key trigger in the FAFSA calculation is the parent AGI as reported on a fed tax return. If this number is below 20K and you file a short form (or dont file), then all other info on FAFSA (student income, family assets) will be ignored. This is called the automatic zero. Based on what you have posted, I'd expect your family EFC to be 0 and your D should get fed aid.</p>
<p>However, an aid package could be a combo of fed and school money. With school's own money, aid officers have more discretion as to whether to look at family assets. This is absolutely true if the school also requires the PROFILE. Home equity and family assets will be factored in.</p>
<p>My question is that you state your D is starting as a freshman in the fall. A freshman at what, HS or college? If college, what college, what about the college's financial aid deadline? Did you miss it?</p>
<p>Don't assume zero just because you are retired. Depends on your assets and what you receive your retirement income from. If you can file the short form you're positioned much better for the magic zero.</p>
<p>someone I know and her husband work for the same company and have combined incomes over 200K. They will be retired by the time their only child starts college. They already have a vacation home (that is rented out much of the year). I would hope that 10-12 years of income in the 150-200+K range would put them at a high EFC even if they are retired at the time they do the FAFSA</p>
<p>Ray, the simplified needs test applies only to those who can file a 1040A or 1040EZ. I don't think that most retirees who are drawing from retirement or have a lot of investments would be able to do that -- chances are you have the kind of income or tax write-offs that require a 1040 and your full assets will be considered. Also, keep in mind that unearned income is still income -- so the interest income you have from your assets counts. Also, you are asked about distributions from retirement accounts. Since I am not yet retired, I haven't paid much attention to the details -- I just know that there are places on the financial aid worksheets that ask those questions.</p>
<p>The best thing for you to do would be to use an online calculator like the ones at <a href="http://www.finaid.org%5B/url%5D">www.finaid.org</a> to get a sense of where you stand.</p>
<p>Thanks everyone, since we were able to retrie early we aren't going to be doing any short forms for the at least the near future. I didn't believe it would change the calculus of aide, but it was interesting to get your comments and suggestions.</p>
<p>If the colleges your D applies to use FAFSA only you will be in a better position. Those that use the CSS Profile go into assets much more closely.</p>