<p>I lost my job 6 months ago. I have been searching frantically- but in this economy there isn't much to choose from.</p>
<p>FAFSA is causing me problems. It is based on last year's income- when I was working. Now we are living on hubby's income and unemployment. I checked the box on FAFSA that says I am a dislocated worker. But i learned that this question is new and most schools don't know what to do with it. Neither does FAFSA. They will not re-examine your need for aid if you point out that you lost your job. Neither will New York state. Why do they ask a question if they won't respond to the answer?</p>
<p>My son is getting aid packages- but the colleges think we still have that income that is gone. Some schools have responded to my letter and are looking at our current circumstances. But others aren't interested- they want us to wait until June. isn't most of the aid gone by June? And don't we have to make a decision by May?</p>
<p>I have written letters and sent emails. I have also sent out packages with tax returns, pay stubs, unemployment determinations and more to every school my son has applied to. Any other suggestions? </p>
<p>At this point it would be tough to even pay for a state school without a lot of aid. What do you think? I appreciate any and all suggestions. Thanks!</p>
<p>You can ask for an extension of the May date, based on your circumstances. You won't be the only person who will be in such a pickle. It's been a bad year all around.</p>
<p>To relieve your stress, I'd come up with a back up plan. It may be your S going to CC and transferring. It may not be optimal, but sometimes you just have to play the cards you are dealt.</p>
<p>Given the fact that all colleges have budgets now that are stretched, it will be important for you to have a back-up plan like having your son start at a local community college or take a gap year doing something like Americorps. I agree with the person who posted that we have to play the cards we are dealt. I also know that often what seems like a disappointing situation -- such as your son's college options changing -- may end up being an opportunity that changes one's life in a good way.</p>
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I am a dislocated worker. But i learned that this question is new and most schools don't know what to do with it. Neither does FAFSA. They will not re-examine your need for aid if you point out that you lost your job. Neither will New York state. Why do they ask a question if they won't respond to the answer?
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FAFSA does use the question in the EFC formula. However it does not automatically qualify you for anything unless you are below certain income limits. All it is is a new eligibility criteria for the simplified needs test or automatic 0 EFC enabling those that meet the income cut offs to be eligible even if they do not file a 1040a/1040ez or receive means tested benefits. But you still have to meet the income cut offs. <$50k = simplified needs where assets are not considered. <$30k = automatic 0 EFC. If you do not meet the income cut offs the dislocated worker question does not affect your EFC at all.</p>
<p>FYI the ONLY federal aid that will change based on your income is your eligibility for Pell and other grants. And you'd need an EFC under 4XXX to qualify for that (it gets progressively smaller)
<a href="http://www.ifap.ed.gov/dpcletters/attachments/P0901PaymentSchedules1D.pdf%5B/url%5D">http://www.ifap.ed.gov/dpcletters/attachments/P0901PaymentSchedules1D.pdf</a></p>
<p>The ONLY thing else in Federal aid is the stafford and Plus loans. ANYONE can get those.</p>
<p>ALL OTHER AID comes from the schools. You need to contact them and hope for the best.....</p>
<p>Might this be a good time to postpone college for a year? The stress you're under sounds immense, and colleges don't seem to be as responsive to newly unemployed workers.</p>
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colleges don't seem to be as responsive to newly unemployed workers.
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It's a doubled edge sword. Colleges are struggling with finances themselves.</p>
<p>My son is also an athlete. Sitting out for a year is not an option. Coaches will lose all interest in him. He is going Div 3 and we are hoping the coaches will talk with financial aid officers. He is smart and has good grades, so he is getting scholarship offers without the athletics. But the rest of the aid package seems to be all loans and parent loans. Who will give us a parent loan when I am unemployed? And do I want to take on that kind of burden when I am unemployed? No.
The EFC # is clearly based on last year's income. No, we can not get our income down below $50,000. But we are close to that threshold and it isn't doing anything for us. I would like the schools to recalculate the EFC based on 2009 projections- but I have to get them to listen to me first. They are too set in their ways with FAFSA and not sure what to do with unusual situations. I can't believe that these colleges have never dealth with unemployment, death of a parent or huge medical expenses that would impact paying for college. Do all students who face these economic challenges drop out of school? I hope not.
I will be sure and report back on what happens. I hope to prevent other parents from having to go thru this in the future.</p>
<p>Your situation is not uncommon. A school cannot just recalculate the EFC - they have to use the EFC produced by FAFSA. You can however ask the financial aid officers for a special circumstances adjustment for loss of income. If they approve an adjustment they can go into your FAFSA and reduce the income to reflect the adjustment. Awarding a special circumstances adjustment is completely at the discretion of the financial aid officer at each school. The financial aid officers who post in the financial aid forum say that generally an adjustment will not be made for job loss until after a certain period has passed since the job was lost. Also any severance pay and unemployment income may be taken into account.</p>
<p>I would suggest re-posting your questions in the financial aid forum where this subject often comes up.</p>
<p>If your income after 6 months of unemployment is still over $50K, I'm wondering where this kid's college fund is! My income is half that, but I've managed to at least save up enough for a year at a state school! Were you planning to pay your son's college costs entirely out of your paycheck every month? I know, people tend to live up to and beyond their means but you're not a low-income person even now! What is it you expect to receive even with an adjustment to current income? Maybe you could tap into retirement or home equity and borrow from yourself until you're back on your feet? Otherwise, a 2 year SUNY or local college he can commute to might be your best bet.</p>
<p>Depending on the sport CC may be a good option. Many CCs have good teams which are recruited by 4 year colleges.</p>
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But the rest of the aid package seems to be all loans and parent loans. Who will give us a parent loan when I am unemployed? And do I want to take on that kind of burden when I am unemployed? No.
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<p>Welcome to the realities of college finances. Loans are also given to students who are unemployed. They want to be repaid in the future, not now.
As the poster above noted, did you not save for your kid's college expenses? Do you now expect your kid to get a completely free education?</p>