<p>We have an unusual situation in our household where our 2012 tax return reflects an unusually high income. Years 2013 and beyond will be significantly lower (by more than $50k). We have submitted CSS Profile, IDOCs, FAFSA and everything (although I still cannot do retrieval for some reason).</p>
<p>My question is this.... can we file an appeal for our 2013 income to be considered, based on estimates? Or are we stuck with 2012 income as the base for 2013 college financial aid?</p>
<p>It would be similar to someone losing their job in 2012, with knowledge that they cannot get any new job due to serious disability. Unfortunately a large severance and several other lump sum distributions occurred in 2012 but now there is nothing coming in.</p>
<p>If this is for an incoming Freshman I would recommend a gap year. The college’s first thought is this is a windfall, why shouldn’t part of it be earmarked for college?</p>
<p>Explain the circumstances and request they they be taken into consideration. If, after doing that, the financial aid your student gets still makes school unaffordable, a gap year might be the best solution.</p>
<p>However, you should also ask each school if they will adjust your student’s award in future years based on your decreased income. Some will; some won’t. If they will, and you can afford that first year, then a gap year might not be necessary.</p>
<p>Thank you for the information.</p>
<p>Yikes, I did not know that it will not be adjusted accordingly each year. We have saved enough to bite the bullet the first year, but the first year will wipe out a large part of the savings. I am now very worried about the future years. I will file an appeal to each school and see which ones will guarantee that each year is based on the new FAFSA.</p>
<p>Boy, we really need some merit aid coming in because that will be guaranteed for each year. Have not even mentioned gap year to my daughter - Oh Boy, this is going to be a great conversation so late in the game.</p>
<p>Wow, I’d say recommending a gap year based on that little bit of info is way premature. Maybe you folks know the OP’s financial and college situation from other threads, but otherwise how would you know a gap year would make much difference? I would say to the OP, you’ll need to run some NPC’s on the colleges your daughter is interested in and see what the costs look like based on 2012 then 2013 incomes. For some, it won’t make much difference because many colleges don’t provide much need-based aid if you’re middle class income anyhow. For some schools it will be a big difference.</p>
<p>Also, I’m sure of you gave more specific income info and school options you’d get some replies that are more specific to your situation. It could be that a gap year is financially beneficial, but not a certainty.</p>
<p>Coral…if this school does NOT guarantee to meet your full need, you cannot count on an increase in aid in subsequent years. Need based financial aid IS reviewed annually, but a reduction in income and lower EFC does not always translate into increased aid in subsequent years. My sons EFC went from $44,000 a year to $22,000 a year when his sister started college. His financial aid increase was $250 additional scholarship money…hardly made up the $22k difference in EFC.</p>
<p>The school IS going to tell you that your aid will be reconsidered annually, but unless it meets full need for ALL students, you cannot count on an increase in need based aid.</p>
<p>Thank you all for excellent info. I did file an appeal to one of her favorite acceptances and it was immediately denied. Not getting any good feelings from them. We’ll have to see what comes from her RD acceptances.</p>
<p>Income will go from 167,000 in 2012 to about $120,000 in 2013 with huge medical expenses offsetting that income down to about $100,000 but still middle income range . Unfortunately the FAFSFA focuses on AGI before the medical deductions. My biggest fear is being locked into a school that doesn’t meet need in the future years.</p>
<p>Sorry for the bad news. Does she have any schools on her list that meet full need?</p>