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nosredna
Guest
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| Posted: Sat Apr 02, 2005 2:40 pm
Post subject: fafsa and parents' income |
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Can anyone shed some light on this FAFSA stuff? I'm still in shock over
the EFC on my daughter's FAFSA. I don't understand how they can use her
income from last year to figure out how we can "afford" to contribute
this year. She took a year off school (2004) and made $13,000, but she's
back in school now and not working, so why should that $13,000 be
included? My husband and I had an AGI last year of only $26,000, and
they gave us an EFC of 05286 (which I assume means $5,286)! I realize
this is before any aid, but apparently we're not eligible for federal
aid because we "made too much" last year. But *this year* is what counts
for paying this year, not last year. Also, the FAFSA asked for parents'
taxes paid, saying it's the amount on line 56 of our 1040, which I duly
reported. But shouldn't taxes be line 62 (total tax)? (We paid "other
taxes"--self-employment taxes also.)
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Steve Blank
Guest
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| Posted: Sat Apr 02, 2005 10:13 pm
Post subject: Re: fafsa and parents' income |
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nosredna wrote:
| Quote: | Can anyone shed some light on this FAFSA stuff? I'm still in shock over
the EFC on my daughter's FAFSA. I don't understand how they can use her
income from last year to figure out how we can "afford" to contribute
this year. She took a year off school (2004) and made $13,000, but she's
back in school now and not working, so why should that $13,000 be
included?
|
The FAFSA uses the prior year income to project your ability to pay for
college, on the assumption that next year will be similar. When that is
not the case, as in your situation, you should immediately contact the
financial aid director to point out that the student's income of 2004
will not be the same in 2005 because she will be in school, and ask that
they consider this when determining her financial aid. They can review
and adjust the EFC if they wish , but they don't have to, so keep the
conversation friendly. Generally, the better the student the more
likely they will adjust.
My husband and I had an AGI last year of only $26,000,
With that AGI, your EFC would have been something under 1000. The rest
is from your daughter's income and the reason you want to contact the
aid officer.
and
| Quote: | they gave us an EFC of 05286 (which I assume means $5,286)!
|
Yes, an EFC of 5286 means that you are expected to be able to pay at
least $5,286 toward education next year before any aid. The student's
eligibility for aid is the amount by which the total cost of attendance
exceeds that amount. Total cost of attendance is tuition, fees, room and
board, and an allowance for books, travel, and miscellaneous expenses.
I realize
| Quote: | this is before any aid, but apparently we're not eligible for federal
aid because we "made too much" last year.
|
You can still be eligible for federal aid. The Student Aid Report said
that "based on your EFC you were not eligible for a federal Pell Grant".
Pell Grant is an automatic grant for those with an EFC under 3850, but
she is still eligible for all other federal loans, work-study and school
funded scholarships and grants. If the school responds favorably to your
review request then her reduced EFC may make her Pell eligible.
But *this year* is what counts
| Quote: | for paying this year, not last year. Also, the FAFSA asked for parents'
taxes paid, saying it's the amount on line 56 of our 1040, which I duly
reported. But shouldn't taxes be line 62 (total tax)? (We paid "other
taxes"--self-employment taxes also.)
|
Line 56 is the correct line. Self-employment tax is the employee's half
of social security taxes, plus the employer's half. You already reduced
your AGI for the employers half on line 30 of the 1040, and the FAFSA
formula automatically removes the employee's share from income based on
your answers to FAFSA questions 76-77 about parents income from work.
Hope this helps,
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761 |
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nosredna
Guest
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| Posted: Sat Apr 02, 2005 11:34 pm
Post subject: Re: fafsa and parents' income |
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In article <UEy3e.20173$CT5.8039@newssvr31.news.prodigy.com>,
Steve Blank <steve@randallblank.com> wrote:
| Quote: | nosredna wrote:
Can anyone shed some light on this FAFSA stuff? I'm still in shock over
the EFC on my daughter's FAFSA. I don't understand how they can use her
income from last year to figure out how we can "afford" to contribute
this year. She took a year off school (2004) and made $13,000, but she's
back in school now and not working, so why should that $13,000 be
included?
The FAFSA uses the prior year income to project your ability to pay for
college, on the assumption that next year will be similar. When that is
not the case, as in your situation, you should immediately contact the
financial aid director to point out that the student's income of 2004
will not be the same in 2005 because she will be in school, and ask that
they consider this when determining her financial aid. They can review
and adjust the EFC if they wish , but they don't have to, so keep the
conversation friendly. Generally, the better the student the more
likely they will adjust.
My husband and I had an AGI last year of only $26,000,
With that AGI, your EFC would have been something under 1000. The rest
is from your daughter's income and the reason you want to contact the
aid officer.
and
they gave us an EFC of 05286 (which I assume means $5,286)!
Yes, an EFC of 5286 means that you are expected to be able to pay at
least $5,286 toward education next year before any aid. The student's
eligibility for aid is the amount by which the total cost of attendance
exceeds that amount. Total cost of attendance is tuition, fees, room and
board, and an allowance for books, travel, and miscellaneous expenses.
I realize
this is before any aid, but apparently we're not eligible for federal
aid because we "made too much" last year.
You can still be eligible for federal aid. The Student Aid Report said
that "based on your EFC you were not eligible for a federal Pell Grant".
Pell Grant is an automatic grant for those with an EFC under 3850, but
she is still eligible for all other federal loans, work-study and school
funded scholarships and grants. If the school responds favorably to your
review request then her reduced EFC may make her Pell eligible.
But *this year* is what counts
for paying this year, not last year. Also, the FAFSA asked for parents'
taxes paid, saying it's the amount on line 56 of our 1040, which I duly
reported. But shouldn't taxes be line 62 (total tax)? (We paid "other
taxes"--self-employment taxes also.)
Line 56 is the correct line. Self-employment tax is the employee's half
of social security taxes, plus the employer's half. You already reduced
your AGI for the employers half on line 30 of the 1040, and the FAFSA
formula automatically removes the employee's share from income based on
your answers to FAFSA questions 76-77 about parents income from work.
Hope this helps,
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761
|
Yes, that's extremely helpful. Thanks very much!
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nosredna
Guest
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| Posted: Sun Apr 03, 2005 12:46 am
Post subject: Re: fafsa and parents' income |
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In article <UEy3e.20173$CT5.8039@newssvr31.news.prodigy.com>,
Steve Blank <steve@randallblank.com> wrote:
| Quote: | nosredna wrote:
Can anyone shed some light on this FAFSA stuff? I'm still in shock over
the EFC on my daughter's FAFSA. I don't understand how they can use her
income from last year to figure out how we can "afford" to contribute
this year. She took a year off school (2004) and made $13,000, but she's
back in school now and not working, so why should that $13,000 be
included?
The FAFSA uses the prior year income to project your ability to pay for
college, on the assumption that next year will be similar. When that is
not the case, as in your situation, you should immediately contact the
financial aid director to point out that the student's income of 2004
will not be the same in 2005 because she will be in school, and ask that
they consider this when determining her financial aid. They can review
and adjust the EFC if they wish , but they don't have to, so keep the
conversation friendly. Generally, the better the student the more
likely they will adjust.
|
I meant to ask another question of Steve: Obviously the parents need to
talk to the financial aid office. But is the student allowed to plead
our case? Since my daughter is right there on campus (a three-hour drive
from her), it's easy for her to walk in, sit down and talk with them. (I
could call them, but it's often difficult to get through, and they
always seem so rushed on the phone.) |
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Steve Blank
Guest
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| Posted: Sun Apr 03, 2005 1:59 am
Post subject: Re: fafsa and parents' income |
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nosredna wrote:
| Quote: |
I meant to ask another question of Steve: Obviously the parents need to
talk to the financial aid office. But is the student allowed to plead
our case? Since my daughter is right there on campus (a three-hour drive
from her), it's easy for her to walk in, sit down and talk with them. (I
could call them, but it's often difficult to get through, and they
always seem so rushed on the phone.)
|
Absolutely. If she can handle that type of discussion in a calm
reasonable manner the personal touch may actually work better. Remind
her that she's asking, not demanding.
I had a client with a unique financial situation that the school just
wouldn't accept. The student finally went in to talk with them and they
made all kinds of adjustments for her.
She wants to get to the director or asst. director (a person who can
make decisions)and not just somebody at the front desk.
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761 |
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nosredna
Guest
|
| Posted: Sun Apr 03, 2005 2:20 am
Post subject: Re: fafsa and parents' income |
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In article <AYB3e.28399$hU7.6755@newssvr33.news.prodigy.com>,
Steve Blank <steve@randallblank.com> wrote:
| Quote: | nosredna wrote:
I meant to ask another question of Steve: Obviously the parents need to
talk to the financial aid office. But is the student allowed to plead
our case? Since my daughter is right there on campus (a three-hour drive
from her), it's easy for her to walk in, sit down and talk with them. (I
could call them, but it's often difficult to get through, and they
always seem so rushed on the phone.)
Absolutely. If she can handle that type of discussion in a calm
reasonable manner the personal touch may actually work better. Remind
her that she's asking, not demanding.
I had a client with a unique financial situation that the school just
wouldn't accept. The student finally went in to talk with them and they
made all kinds of adjustments for her.
She wants to get to the director or asst. director (a person who can
make decisions)and not just somebody at the front desk.
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761
|
Another challenge is that she got a 1098T for 2004 showing "tuition &
qualified fees (box 2)" of $2958. (She actually paid $3617 in 2004,
outstanding amount due from 2003, which probably includes non-qualified
items.) She can't be claimed by us as a dependent in 2004 because she
made over $3100 and was not a student in 2004. But it seems unfair that
we can't claim that $2958 somewhere on our taxes. She just received a
refund for (I guess for fees that she had paid for fall semester of
2003, I think--I didn't see it). Since we can't claim the $2958, it
doesn't seem that we should declare the refund either (on our 2005
taxes). Do you know about that issue? |
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nosredna
Guest
|
| Posted: Wed Apr 06, 2005 7:15 am
Post subject: Re: fafsa and parents' income |
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|
In article <AYB3e.28399$hU7.6755@newssvr33.news.prodigy.com>,
Steve Blank <steve@randallblank.com> wrote:
| Quote: | nosredna wrote:
I meant to ask another question of Steve: Obviously the parents need to
talk to the financial aid office. But is the student allowed to plead
our case? Since my daughter is right there on campus (a three-hour drive
from her), it's easy for her to walk in, sit down and talk with them. (I
could call them, but it's often difficult to get through, and they
always seem so rushed on the phone.)
Absolutely. If she can handle that type of discussion in a calm
reasonable manner the personal touch may actually work better. Remind
her that she's asking, not demanding.
I had a client with a unique financial situation that the school just
wouldn't accept. The student finally went in to talk with them and they
made all kinds of adjustments for her.
She wants to get to the director or asst. director (a person who can
make decisions)and not just somebody at the front desk.
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761
|
Steve, my daughter called the financial aid office of her school and was
told she had to fill out a "special consideration" form, which is only
issued in November. Since that will be after we will have started to pay
tuition for the next school year, we will essentially be applying for
relief "after the fact" (so if we're approved, we'll get a refund next
year, which won't be much help when it comes time to paying tuition for
the first two semesters at least). She was told that PHEAA also has a
similar form, and they're mailing one to her. Do you know anything about
these forms? This is very frustrating. |
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