<p>My dad told me tonight that he is retiring next month. This means that my annual family income will change from about 125000 to 65000 per year. I turned in my fafsa last month and had an efc of 27000. If I let fafsa know about my family's upcoming change in income, would my efc change, or is it set until next year?</p>
<p>Because the laws set by Congress say that the base year used for the FAFSA is the full year previous to the school year in which the award year begins (whew!) - the choice to retire will not be considered until NEXT year.</p>
<p>You are always free to talk to the financial aid office, and it is possible they might adjust your family income to reflect the new circumstances.</p>
<p>I glanced at our FAFSA, and don’t see where you report estimated 2009 income; maybe I’m thinking of PROFILE. I’d contact the college immediately and inform them of the drastic change in income. I’d think this might be one of those “special circumstances” that appeals are based on.</p>
<p>It does seem crazy that they base what you will pay to attend school from September 2009 through 2010 on your income from almost two years prior starting January of 2008. If your income drops on January 2009 that’s what you’re making for 8 months just prior to school starting. Seems like a crazy system.</p>
<p>You contact the Financial Aid Office in writing and explain the situation. Provide proof of the retirement if possible. They should adjust your award letter.</p>
<p>It looks like you’re looking at the broke UCs. As these are not schools that meet need, even if your EFC changes your aid may not. Or you may just get more loans. If you are applying to other schools that do meet need, your need aid would go up considerably from soph year on and they may adjust for this year.</p>
<p>The problem is, there is no perfect way to determine the ability to pay. If left to those who have to pay, we’d all claim an inability to pay anything more than we want to pay. It’s not easy to come up with a one-size-all formula. The alternative, case-by-case analysis, is impossible.</p>