<p>At least, I think it's tricky... I'm not sure how FAFSA handles this.
Around mid-to-late-December, my dad will either be switching companies and getting a fairly big pay cut or MAYBE staying within the same company and, again, losing a chunk of his salary. However, when filing for the FAFSA, his filed taxes for the previous year will have shown a much bigger salary than his actually current one.
No, this isn't being done on purpose to maximize need-based FA -- my dad had no control over it.
But how will colleges view this? Will they give the FA based on my dad's new salary, or his old one? I'm afraid it looks somehow suspicious, but I guess we could explain the situation...
Thanks for any help - sorry if this sounds stupid, I've been worrying about this recently.</p>
<p>That's what the section for explanations is about. There is also a section where your parents say what they expect their income to be next year. You can also explain the entire situation in a letter that would accompany your 2008 taxes that you send to the FA office.</p>
<p>For FAFSA you will have to file using your 2008 tax information. You can then ask the school(s) for a special circumstances adjustment because of loss of income. You (your dad) will have to provide proof of the change in income. It is up to each schools discretion whether they make an adjustment or not. They have the final say. If they do approve it they (not you) can go into FAFSA and adjust the income to reflect the change in circumstances. Then your numbers are run through the formula again producing a new EFC. (we had one done because of high medical bills and loss of benefits).</p>
<p>More information on special circumstances adjustments here
FinAid</a> | Professional Judgment | Special Circumstances</p>
<p>You may want to gather documentation showing that the reduction in pay was not voluntary but forced. Typically, FA Offices look down on voluntary reductions of income. Since your father doesn't have a choice, it would be sad to see you lose the chance for an adjustment just because they think he might have chosen to reduce his income.</p>
<p>I work in a financial aid office in an area where this situation is, unfortunately, increasingly common. We have a form that students/parents fill out asking for special consideration - and it tells them what info they'll need to give us. Call the schools you are interested in to find out what they suggest you do. You might find info on their website - it's worth checking out.</p>
<p>Sorry to hear about your dad's situation. It's really difficult on him and your family. I hope everything works out okay for you.</p>