Financial Aid: Special Situations: Frequently Asked Questions ::: Nelnet
 

Frequently Asked Questions

 

Financial Aid: Special Situations

1. My family's gross income is about $90,000. However, after all the bills are paid we are left with a very small amount. How does this affect my financial aid applications?
2. What can a family do if a job loss occurs?
3. I was recently laid off and am now on public assistance. Are there any programs for a student in my position?
4. With recently bankrupted parents and little current income, what is the route I should take in securing a financial plan for college that involves minimal or no out-of-pocket expenses?
5. I have filled out the FAFSA, but my parents' tax preparer told my parents that we shouldn't expect any financial help. I need help paying for college, and I'm afraid of taking out a loan. What can I do?  
 
 

1. My family's gross income is about $90,000. However, after all the bills are paid we are left with a very small amount. How does this affect my financial aid applications?

Your FAFSA information will be carefully reviewed and it must include financial information from both you and your parents. When you are looking into your final college choices, be certain that your school's financial aid officer has a complete understanding of your family's total financial situation. You will very likely need to consider the Stafford Loan and other self-help options to help defray college costs.

The following change was introduced by the Higher Education Reform Act, 2005: a small business with not more than 100 full-time or full-time-equivalent employees (or any part of such a small business) that is owned and controlled by the family is excluded from assets on the FAFSA.

 

 

 
 
 
 
 

2. What can a family do if a job loss occurs?

Aid eligibility is based on the previous year's income. So the family's 2006 income would be reported to determine eligibility for the 2007-08 academic year. In that way, the family's income can be verified with a tax return. But the previous year's income may not accurately reflect the current financial aid situation, particularly if a parent lost a job or retired. In these instances, the projected income for the coming year can be used instead. Families should discuss the situation directly with the financial aid office and be prepared to provide appropriate documentation.

 

 
 
 
 
 

3. I was recently laid off and am now on public assistance. Are there any programs for a student in my position?

Yes, depending on when you plan to attend school. If you have already filed the 2007-08 FAFSA application and your income status has changed, notify the financial aid office at the school you plan to attend and it can assist you in making the changes necessary to be considered for additional financial aid due to changed financial status.

 

 

 
 
 
 
 

4. With recently bankrupted parents and little current income, what is the route I should take in securing a financial plan for college that involves minimal or no out-of-pocket expenses?

Based on your current financial situation, you will probably be eligible for maximum financial aid. Your parents will not be eligible for the parent PLUS loan, which should add an additional $4,000 to your basic $3,500 Stafford Loan limit (effective July 1, 2007). You also need to look for private scholarships, but please keep in mind that unfortunate financial circumstances do not necessarily mean you will get enough financial aid to pay for your entire education. You should shop around and see what school is most affordable. Try both private and public colleges. Good luck!

 

 

 
 
 
 
 

5. I have filled out the FAFSA, but my parents' tax preparer told my parents that we shouldn't expect any financial help. I need help paying for college, and I'm afraid of taking out a loan. What can I do?

Filing the FAFSA begins your consideration for federal student aid. You should follow through with your state's requirements for grant aid as well. Be sure that you have applied for what is available. Also say in close touch with the school of your choice to be certain you are considered for any institutional monies. Although loans are not preferred, they are taken out by most students and families out of necessity and can make your higher education a reality.