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[Claudia]

I filled out the FAFSA application for my daughter, and I recently received
notice that she qualifies for a $1300 Stafford loan. The yearly cost is
$8,000 and I can't afford the balance for the first year (including my
daughter's contribution with her part time job). The second year looks a
little brighter because I am working again, etc., and I am fairly certain
that I can at least what loan she may obtain.

In 2003 I almost depleted my retirement account due to a financial hardship,
being unemployed, and miscellaneous unexpected emergencies. These
retirement plan withdrawals are not as large as they appear when one
considers penalties and taxes. They are nonetheless "income" and as such my
contribution to her education appears larger then it really is.

Can anything be done in light of my then-financial hardship and the ripple
effect that it is having on me this year to appeal FAFSA for more
consideration? I am not asking for handouts, but at minumum a loan that is
sufficiently large to cover her first year's tuition.

Do you have any similar experiences to share, advice or suggestions?

Thanks.

Claudia

[Steve Blank]

Claudia,

You can certainly appeal, and definitely should based on the retirement
fund withdrawals.

But first, double check your award letter. Any freshman should be
offered at least the $2,625 Stafford loan, half of it each semester.
Since $1300 is about half, you may be looking at the aid for just one
semester. You may be getting more than you think for the year.

Financial aid eligibility is based on the cost of attendance minus the
Expected Family Contribution (EFC) shown on the Student Aid Report (pink
paper this year) from the processed FAFSA. The EFC is under the date on
the front page.

The EFC is computed based on the FAFSA info you provided, and when it is
not typical of your income you can point this out to the financial aid
director and request a review and possible adjustment.

In your case, you withdrew money from your retirement fund due to a
hardship, and that added income distorts your ability to pay for
college. The college can, but does not have to, adjust your FAFSA to
remove the retirement fund income from the computations.

Make a call to the aid director, or as high up as you can get, to
discuss your situation and how to appeal. They'll probably want a letter
from you laying out the details. Keep it brief but make your points clearly.

Good luck,

--
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761




Claudia wrote: