<p>My husband lost his job(new president of his company replaced him with his own choice) and has been taking some consultant work. After losing his job he was diagnosed with epilepsy and may or may not be able to drive, get another job at the age of 58 etc depending on whether or not it can be controlled. </p>
<p>If he is a displaced worker, it appears that we can fill out the simplified EFC(for those with incomes under 49,000), however, the consultant work will result in him receiving a 1099 which can only filed on a 1040. </p>
<p>I called the college where my daughter enrolled and they told me to called FAFSA and they just told me to go on line and fill out the form and the answers will tell me which form to use.</p>
<p>If anyone knows about this, please let me know. The oldest child will be a senior next year and the other will be a freshman. I need more of the facts before I explain the situation to the younger one. Thanks for any advice. Chauffeur</p>
<p>Simplified needs test just means that assets will be disregarded in the EFC formula.The requirements for the simplified needs test are :</p>
<p>Parent AGI below $50,000 and one of the other criteria
eligibility to file a 1040a or ez or
displaced worker or
someone in the parent household received means tested benefits</p>
<p>If you meet the requirements for simplified needs then income will be used in the formula but assets will be ignored. Even without the simplified needs test there is a certain amount of asset protection based on the age of the older parent. For a 2 parent family where the older is 58 the asset protection is $65,300. (the primary home and any savings in retirement accounts such as 401ks are not reportable assets). So simplified needs will only make a difference if your assets are over $65,300.</p>
<p>These are the rules for 2010-2011. They may be different next year.</p>
<p>Your high school senior is going to have to CAREFULLY select schools to apply to.</p>
<p>Keep in mind that having a low EFC does NOT mean that you’ll get a lot of aid from a school.</p>
<p>Most schools do NOT have much aid to give so you may very likely be gapped anyway. Most schools really only have small federal aid to give as need-based aid.</p>
<p>For someone with a very low EFC, the most many schools give is a small Pell grant, work-study, and loans. This can be shocking for someone with a low EFC who thought they would be getting a lot of free aid. </p>
<p>Your high school senior may need to apply to schools that will give merit scholarships for stats. </p>
<p>That situation should result in you qualifying for the simplified EFC formula and asset info will be optional for FAFSA (but may be required if needed for your state aid programs).</p>
<p>^^for the states that require asset data there is no option on FAFSA to not provide it even if you qualify for simplified needs or auto 0. (We always have to provide it).</p>
<p>My husband and I were talking about this the other day.</p>
<p>Even if we were qualified to file a 1040A and be eligible for simplified needs, any CSS Profile school would just add them back in using their institutional formula, right?</p>