<p>Hi, I have an important question (important for me at least lol)</p>
<p>My family is low income, (<60k) and I am pretty sure I would qualify for full financial aid. My sister is a Gates Scholar, if that says anything. </p>
<p>So this past year, our income sort of changed. We took out a loan and invested in a business. However, this business isn't yielding any profit. We are covering the lost through the loan. </p>
<p>So where does that put me in terms of getting financial aid. Large loan, loss from business, and a job (that supports the family) for income that is below 60k. </p>
<p>I don't want them to see this huge loan or that we own this business and be like, this kid is rich. We're not, we took out a loan to try and help our financial situation - and it hasn't worked. My family says I won't become a Gates Scholar for sure because my sister, who went to the conference, said that no one's family owned any property or business. While we don't own the property (we pay rent to the landowner), we do technically own the business even though my dad said the market value of it is 0 because he hasn't made a penny off of it. </p>
<p>I'm pretty confused where it puts me. I feel like I should still qualify for full financial aid but I feel like they will see the loan and think we own a business and so we must be rich. </p>
<p>Can some financial aid guru help me out? Thank you very much!</p>
<p>bump bump bump</p>
<p>come on, someone has to know something!</p>
<p>You may still have a low EFC, but keep in mind that most schools do not meet need.</p>
<p>What are your stats?</p>
<p>What state are you in?</p>
<p>What schools are you looking at?</p>
<p>Thank you for a response. </p>
<p>I am looking at the Ivies and schools that give full aid. And I will also be applying for the gates…if I still qualify? </p>
<p>Quick Question</p>
<p>Here is a example scenario:</p>
<p>primary income: 30k
business profit: 26k
business loss: 54k
business net income: -28k
loan: 150k</p>
<p>so is the income 30k or 56k (30+26). cause it makes a difference! something like that i guess?</p>
<p>If the business took a loss overall, revenue from the business will not count toward your parents’ adjusted gross income in that tax year.</p>
<p>A question might be…</p>
<p>Where is that loan money sitting? If it’s sitting in a savings acct or similar, that will hurt you.</p>
<p>The Gates just uses the FAFSA. FAFSA determination of how to use your business depends on a few things: what kind of business it is, what percentage is owned by your family, how many people are employed, etc. Also, the loan treatment will also vary by a few things including whether or not it was secured by the business. This link may help.</p>
<p>[FinAid</a> | Financial Aid Applications | Small Business Exclusion](<a href=“Your Guide for College Financial Aid - Finaid”>Small Business Exclusion - Finaid)</p>
<p>“Where is that loan money sitting? If it’s sitting in a savings acct or similar, that will hurt you.”</p>
<p>Did you get this from somewhere or is that your gut? I hope a financial aid officer weighs in but I <em>think</em> that, if the $ is a business loan secured by the business, it will only come into play if the business itself is looked at and a lot of small businesses are excluded by FAFSA rules. If, however, it is a home equity loan or loan against an IRA and they are using that to fund the business, the cash may then be looked at.</p>
<p>On the other hand, this may be a factor for the PROFILE schools and the GATES wouldn’t make up the difference between the PROFILE school’s EFC and the FAFSA efc. The student could ask for the school to reconsider and lower the efc, however, but that would all be determined after an admissions response was due. I might call a few of the schools but I would also advise the student throw in 1-2 FAFSA-only schools even if they don’t meet need to hedge his/her bets because the Gates would actually make up that difference. (I actually suspect that the most generous schools would still provide an affordable education for this student but it’s always tough to predict admissions.)</p>