<p>I seem to be stuck in a very awkward situation with financial aid. Hear me out:</p>
<p>So my my mom is in US with the H1B (H4 for me)
But my dad is in Korea, and he is self employed.</p>
<p>When I tried to complete the CSS profile, I ran into a lot of gray areas.
It says to list the tax form my parent(s) use, so I listed something like 1040A.
But later, it gives me an notification saying that I listed one of my parents as being
"self-employed," therefore I must select 1040 instead of whatever I put. What do I do??</p>
<p>And the other thing is, the business that my dad owns is like a broker business.
When you look at the tax return form, there are many high numbers (because the business
is under his name). But after paying the employees and everything, he only ends up with
barely any money to live. He provides (can't) absolutely no financial support to me and my mom in the US.</p>
<p>So I'm worried that the high numbers that show in his business tax return will reflect
badly on the financial aid offices, making them think that he earns a lot. And CSS profile
makes you list incomes of Both of your parents even if they are living in a different country, as long as they're married. So if I add mom's income and dad's unreasonably high income that doesn't even reflect the the actual earning on his part, I'll probably get not aid, as determined by income.</p>
<p>TL;DR
My dad doesn't earn anything but it looks like it does, in a foreign country.
So my financial aid profile will look all "high numbered," and I'm screwed.</p>
<p>Can ANYONE tell me what's going on?
Please, experts of CC, help</p>
<p>If you are a permanent resident, the FAFSA also requires both parents’ incomes if they are married. It doesn’t matter where they live…you would need to convert your dad’s earnings and taxes into U.S. dollars and add them to your mom’s earnings and taxes. You put both on both the FAFSA and Profile.</p>
<p>If you are not a permanent resident, you cannot do a FAFSA and you are not eligible for federally funded need based aid.</p>
<p>BUT for the Profile, yes…both parents…both incomes…both assets.</p>
<p>
</p>
<p>Just be honest. If the numbers are high…that is that…the numbers are high.</p>
<p>
</p>
<p>You aren’t really making sense here. If your dad has high income, then that is what he has. You need to know that self employed U.S. citizens often find the financial aid process troubling as many of their “business expenses” are added back in as income. Yours is not a unique situation. </p>
<p>My advice…be honest. Just put down the numbers as they are. The bottom line is that you might be asked to verify your dad’s foreign income and all of his expenses and taxes too. If that happens and the numbers on your forms don’t align with what you put on the Profile, adjustments will be made to make them align. If it looks like you didn’t do the forms correctly on PURPOSE, you run the risk of losing your financial aid AND your admission to the school. JUST BE HONEST.</p>
<p>And try to find some schools that are affordable for your family too.</p>
<p>Thank you for somewhat clearing up my problem!
I actually didn’t start on my profile, and I plan on being honest about it.</p>
<p>It seems like you know quite a bit about it! I thank you for your reply.</p>
<p>I called my dad today, and apparently, it’s way more complicated than I had expected.
I know business expenses and stuff are common, but it’s more complicated than that I’m afraid. I’m planning to just call my ED school and talk to them about it.
Thanks though!</p>
<p>Find out how your ED school treats business owners. If it’s not favorable, you might want to consider changing your application to regular decision so you are not locked into an acceptance that is not financially favorable AND so that, in the end, you can compare financial aid offers amongst those you receive.</p>
<p>So apparently, when I called my dad (whom I haven’t talked to in 3 years), he tells me that the company he owned bankrupt about 2 years ago… I’m still in shock kind of.
He said he isn’t ready to file a bankruptcy yet because there are things that he needs
to collect from other businesses, which would become invalid after he files his company as bankrupt. So his current bank account remains 0, since anything he puts in there would be automatically taken out… (idk why)
So this August, he took a test to become an insurance agent, equivalent to a State Farm Agent here i guess… and he told me he has earned US equivalent of five hundred dollars so far. Since he has the situation with his bank account, his earnings go to his friend’s bank account, to actually survive (sleep, eat, etc.). His tax thing in korea will be filed next May, so his accurate earnings will only be available then. Since this is his first time doing that kind of business, and since he only started it 2 month ago, he doesn’t know how to estimate his earnings to put on the CSS Profile. Before I talk with colleges, could you clarify some things, and tell me what I should actually ask? Thank you so much for your time btw.</p>
<p>You are right to call your ED school to ask their policies – but DO NOT APPLY ED. If you have already submitted an ED application, then call and ask that it be shifted to RD. You can NOT go ED with your uncertain financial circumstances. You will need to apply to multiple schools, including some that will not ask for the CSS Profile, and compare awards in the spring. Your father’s business situation is way too uncertain for you to apply ED.</p>
<p>I fully agree with Calmom. I think you should change your application to RD and apply to multiple schools including some where you either can afford the costs (instate) or might be eligible for automatic merit aid. Applying ED is a bit risky given the very tentative financial situation your father presents.</p>
<p>Where are you an instate student? If your parents are not married, your instate public university probably requires the FAFSA only. ONLY your mom’s income would be on the FAFSA if your parents are not married. You might qualify for low income money from your state of residence (depending on your mom’s income…what is that?).</p>
<p>Well, in my honest opinion, after talking with him, I don’t think the situation will improve to reflect any more high figures in the bank account. He will continue his job as an insurance agent and the financial support that I receive from him will remain the same, zero. I have already foolishly paid my application fee for ED (app not yet submitted tho), and the school meets 100% of demonstrated aid. I have a decent shot at the school (and since it’s ED), and I don’t want to take away that chance just because of this.</p>
<p>If you will not be able to attend because of insufficient money, what GOOD will an ED acceptance do you. If you are really a competitive admit for this ED school…CALL THEM and change your application to RD and then apply to other schools. That way you’ll be able to compare the finaid offer from your ED school (which will then be RD) to other schools. You may find it is a favorable offer and you can accept it…and you may find that another place is more favorable. </p>
<p>You also should apply to some places where you can afford to attend.</p>
<p>Your ED school will compute your financial aid package based on the information you provide including that of your dad. You are making it sound like this will not make you eligible for significant need based aid. If you really need that…you might not be able to attend this ED school anyway.</p>