Which year is financial aid calculated by?!?

Paying for College
1

<p>Alright, so my parents have pretty much said that it's my job to figure out financial aid stuff.</p>

<p>I'm planning on applying to Ivies/places that offer need-blind.
My question is...which year do they calculate your financial need from? I'm applying class of 2011, so would they use my family's finances from January-December 2005 or January-December 2006? The thing is...my dad was unemployed from 2002-2005 and just recently got a job, so although our income is probably higher for the 2006 year it's mostly being used to pay off debt and mortgage and all that stuff I don't understand. </p>

<p>I've looked on some financial aid websites but I can't figure this out? Does anybody know or have advice?</p>

2

<p>Colleges base your ability to pay this year's tuition on what you and your parents made THIS year--January-December, 2006. This will be your first base income year.</p>

3

<p>Will they not take into consideration at all the past few years though? Even if they use the 2006 year, it will probably be around 60k, so I should still qualify for substantial need-based awards at Ivies, correct? But having a family income of less than 10k for 3 years of my high school career has to account for SOMETHING, right? Or does it?</p>

4

<p>Your offer will be based on the current year and the information provided on the FAFSA and CSS profile. However, most schools have a review process and that would be the appropriate time to provide additional information such as your dad's unemployment. However unless there are significant bills arising from that time period that are still being paid back, it may not change your offer.</p>

5

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<p>The above may be a bit confusing. If students are starting college now (August or Sept 2006), their finaid award was based on their income from the 2005 tax year (January 2005-Dec 2005). If you are starting college in September 2007, your financial aid will be based on your family income from the 2006 tax year and your family assets the day of the filing of your FAFSA and, if needed, Profile (which WILL be needed for all those private schools). Really, the only "debt" that is considered is home mortgage debt, and that is on the Profile only. However, the Profile also takes home equity into consideration.</p>

6

<p>If you're starting college in Fall '07, then you NEED to file the FAFSA in January 2007, right ?</p>

7

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<p>Yes...that is correct. However, keep an eye on the deadlines for the Profile. Some schools have priority deadlines for the Profile as early as November of your senior year. Re: filing the FAFSA...you want to file ASAP after Jan 1 of your senior year in high school. You will submit as a "will file" meaning that you will be filing your taxes but have not yet done so. You will need to do your very best estimates from your parents and your last paychecks, bank statements, etc. Then as soon as possible after Feb 1, you should complete your income taxes. Then you will go online and amend the FAFSA to indicate you have completed your taxes. DO NOT DELAY...this is NOT the year to put off doing your taxes until April 15. Some schools will give you an estimated finaid award based on a "will file". Others will not even process your application. BUT your finaid award will not be finalized until you have amended the FAFSA to indicate accurate figures based on your completed tax returns.</p>