Will my financial aid be heavily affected?

<p>During this past year, I had 2 part-time jobs(I worked anywhere from 20-35 hours weekly, on average, I think. There were periods where it was even more.) in order to help my mom with bills and the such, while being a full time student. My mom herself doesn't make that much money, being a minimum wage worker. My questions are:</p>

<p>1)I heard there was a threshold of about $6,000 of student income before financial aid is affected. Due to working so many hours, I have surpassed this. How drastically can this affect me? Considering that I pay bills, a substantial amount of money did not end up for me, but I have a good amount saved up.</p>

<p>2)While my mom does not make that much money, she has a substantial amount saved up at the bank throughout the years. Fafsa asks for money saved up, and I worry that it's going to negatively affect what I get. I don't want to give too much information, but to get an idea, let's say there are anywhere from 5,000-25,000 in the bank.</p>

<p>This past year has been extremely stressful, and I worry that these sacrifices will basically end up in the equivalent of shooting myself in the foot. Any feedback?</p>

<p>a ) You are right about the 6,130k. After that students are expected to contribute 50% of Adjusted Gross Income. Student savings are assessed at 20 to 25%</p>

<p>b) parents have a asset protection level, depending on age but it will likely be around 45-50k. Over that, parent savings are assessed at 5%</p>

<p>Those asset protections are FAFSA formulas. If you apply to schools with CSS profile, they look at everything. Run the school’s Net Price Calculator…</p>

<p>You don’t say what year you are applying to school. Remember that income is measured in calendar years. So 2013 income figures are used for 2014-15 school year. 2014 income figures are used for 2015-16.</p>

<p>Run the numbers through the FAFSA EFC estimators, and that will give you a good idea as to what that is. Unless you get heavy merit money or go to a school that costs less than that amount, the EFC is usually the LEAST you can expect to pay. You have to pay that before getting any federal aid. Also read the rules very carefully for automatic zero EFC. Parent income under $24,000 (? and qualified for a means tested benefit (like TANF or SNAP) or could file a 1040a or 1040ez are some ways you might qualify. I don’t remember the exact thresh holds right now, and you should know these rules cold, so YOU look them up and see how it works. Your parents assets don’t count at all, I believe with those rules. I did not read up on them for the 2013 FAFSA–there are threads on the board, but you are better off reading original source material for this since it can make a big difference to you, and you should always verify info you get from second hand sources, so go to it.
There are other ways you could qualify than what I listed, but those are most common. Look up auto 0 efc for a full list. Make sure you are a dependent student when looking at the guidelines (under 24 in general, but again read the list</p>

<p>The schools that use PROFILE will have varying ways of assessing your family situation. No school I know, even Harvard honors the FAFSA EFC in giving aid, so your mileage will vary with such schools. That where the NPCs for each will make a difference. A zero FAFSA EFC does guarantee you the PELL Grant of about $5600, and $3500 of unsubsidized direct loans plus first in line for other federal money if the school carries those funds. But PROFILE schools may require a minimum student contribution. </p>

<p>A word–YOUR assets may not be protected like your mother’s, especially with PROFILE schools that can be draconian about student assets. It’s the assets as of the day you fill out the forms that count, so make sure you spend down pay your mom back, and a tip—open an account for yourself joint with mom’s name and ssn first so that it count’s under the parent protection umbrella and not a direct hit to you. Under auto zero, if you qualify, your assets won’t count, but if they do for any reason, if you don’t qualify for that auto zero and for PROFILE schools, the hit is at least 20% starting with dollar one of student assets, whereas it’s 5.6% after protection allowance for parents. YOU have no protection allowance. They go after the first dollar on up and some schools will continue the formula through all four years and they are worse than 20% . That can be a big hit to student who has saved.</p>

<p>The other thing is make sure you let your counselor fully know your situation, and your teachers who are writing the rec letters too so that the fact that you are working and earning towards the household expenses is very clear to admissions. When you get accepted, fin aid should also be apprised. You should always give those who are writing letters of such about you “cheat” sheets so they don’t leave out anything essential or get writer’s block anyways–it’s much appreciated. Many schools require a student to fill out a form with such info. If there isn’t such a process, write your thank you letter to the GC and teachers ahead of time and include such info to make it easy for them and to ensure such info will be taken into consideration. At a number of the schools, yes, your situation will be taken favorably into account. </p>

<p>Good luck to you and your mother is one lucky woman to have you.</p>

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<p>This sounds like a single parent household in which case the parent asset allowance is only $7-9k, the biggest fafsa inequity there is.</p>

<p>If your mom’s AGI is low, less than $50k, or less than $24k you may qualify for the simplified formula or the auto 0 EFC in which case you and your mom’s assets won’t count toward your EFC.</p>

<p>Here’s the fafsa formula guide. You can check the requirements for the simplified formula and auto 0 there and even run all the numbers if you want.</p>

<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf”>http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf&lt;/a&gt;&lt;/p&gt;

<p>Please clarify what year you are in school. CSS Profile schools and schools with their own finaid forms will look at your family’s financial situation in their own way and fafsa will only be used to see if you qualify for federal and perhaps state aid depending on your state.</p>

<p>I am applying for the 2014-2015 school year. It is my second year in college(qualified for financial aid last year).</p>

<p>So, did you qualify for the simplified formula last year or the auto 0 EFC? Did your mom file a 1040 or 1040a for 2013 taxes? What was your EFC last year, what is it for 2014-15. I assume you’ve already submitted fafsa. Are you at a fafsa only school or did you have to file profile or another form for 2014-15?</p>

<p>When does your school say it will have the finaid award ready for continuing students? At this point there isn’t much to do but wait for it.</p>

<p>I am in the process of finishing the fafsa. I believe my mom did submit 1040a. I qualified for financial aid last year, and since I was not working then, i assume everything glew well with the efc. I believe the school is fafsa only, as they have not asked for any other information.</p>

<p>What was your EFC last year? Did you qualify for an auto zero then? If her income is about the same, not over the auto zero threshhold and she did file a 1040a, your income will not count, nor will any assets, yours or hers for FAFSA purposes. </p>

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Did the FAFSA ask you for your mom’s assets and your income? No, then you’ll be ok.</p>

<p>@cptof I don’t have the specifics for much, but yes, she has made around the same amount of money.</p>

<p>@4kidsdad Well, yes, it’s asking that information. It’s asking her bank account information, my taxes,etc</p>

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See BrownParent’s reply for the impacts to your EFC. However, see <a href=“http://www.finaid.org/educators/needs.phtml”>http://www.finaid.org/educators/needs.phtml&lt;/a&gt; for Simplified Needs Test and <a href=“http://www.nhheaf.org/index.asp?page=pay_zeroefc”>http://www.nhheaf.org/index.asp?page=pay_zeroefc&lt;/a&gt; for Automatic Zero EFC Calculation</p>

<p>Since I have never filled out a FAFSA with an auto zero EFC, I have no idea if the info still has to be filled out with all assets and other info and the system then turns it into the auto zero upon answering certain questions and having income below certain thresholds. My guess is that one would still have to fill in the values for audit purposes and the EFC then just turns into zero. But that is just my guess.</p>

<p>OP, what was your EFC last year? Was it zero? </p>

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If you meet the conditions for Automatic Zero EFC Calculation, the FAFSA on the Web will allow you to skip all the questions on the assets and also student’s incomes & assets.</p>

<p>So my assumption is wrong. OP, did you look carefully at the questions for the Auto Zero EFC Calculation on the FAFSA? What is causing you not to get that auto zero? What is your mother’s income? If her income is below a certain threshhold and you say she has filed a 1040A, then should you not meet Auto Zero EFC Calculation? </p>

<p>OP, are any of your mom’s savings in protected retirement accounts? I’m unclear why you are paying bills for your mom if she has quite a bit saved up.</p>

<p>In some circumstances they will ask ‘do you wish to report assets’ and you may decline. Then you only have to if your colleges asks you. </p>