FAFSA for people with real jobs.

[BlameItOnTheOH]

---

Members don't see this ad.

I'm single, making about 40K/yr right now...but im starting med school this summer and obviously quitting my job. Does anyone happen to know how my current income will affect my financial aid for my first year? I mean, I realize that the FAFSA doesn't "know" I am quitting my job, but it seems like it would be pretty unfair to not get any need-based aid because of that. With undergrad debt, bills, and the whole interview process, I really have no money saved 🙁

I am 24, so I am listing my mom's income only (no contact with father), and since my moms income is reeeally low i was hoping to score some aid. anyone been in a similar situation???

 

[Scottish Chap]

I'm single, making about 40K/yr right now...but im starting med school this summer and obviously quitting my job. Does anyone happen to know how my current income will affect my financial aid for my first year? I mean, I realize that the FAFSA doesn't "know" I am quitting my job, but it seems like it would be pretty unfair to not get any need-based aid because of that. With undergrad debt, bills, and the whole interview process, I really have no money saved 🙁

I am 24, so I am listing my mom's income only (no contact with father), and since my moms income is reeeally low i was hoping to score some aid. anyone been in a similar situation???

Your school should adjust accordingly. I was hit badly when I applied to medical school in 2004. I was working and my wife was working. Neither of us had jobs when I started medical school in a new state. When I saw my abysmal financial aid package from the medical school (you'll get this well in advance if you are not wait-listed), I just called them up, explained, and asked them to please re-calculate. They did, and and I was eligible for more loans. It's scary, but they have to help you, and they will help you. It's their full-time job. BTW, we owned a home. That is not factored into their calculation (at least in the state where I studied).

 

[Zeke803]

I'm single, making about 40K/yr right now...but im starting med school this summer and obviously quitting my job. Does anyone happen to know how my current income will affect my financial aid for my first year? I mean, I realize that the FAFSA doesn't "know" I am quitting my job, but it seems like it would be pretty unfair to not get any need-based aid because of that...

Your school should adjust accordingly. I was hit badly when I applied to medical school in 2004. I was working and my wife was working. Neither of us had jobs when I started medical school in a new state. When I saw my abysmal financial aid package from the medical school (you'll get this well in advance if you are not wait-listed), I just called them up, explained, and asked them to please re-calculate. They did, and and I was eligible for more loans. It's scary, but they have to help you, and they will help you. It's their full-time job. BTW, we owned a home. That is not factored into their calculation (at least in the state where I studied).

Great advice. I was wondering the same thing about going back to school this fall - I'm in the military, my wife has a good-paying job, so our income would disqualify us from aid...but once I finish the FAFSA, I will ask my school to recalculate once I am out of the Army. Thanks! 🙂

 

[Bernoull]

I did the same last yr, I had a decent paying job but had to quit. Many schools that have their own finaid application (in addition to FAFSA) have a place where u can list special financial circumstances. Additionally u can call the finaid office to discuss ur special circumstance. They'll certainly readjust ur aid to reflect ur new financial reality.

Goodluck!

 

[MLT2MT2DO]

Good to hear, I too am another person in a very similar situation.

 

[deleted332297]

Thanks for the information, I'm in a similar situation as well.

A related question for anyone in the know: is it possible to choose "married filing separately" for my tax return, as a way of excluding my husband's income on FAFSA? He is teacher so he isn't making vast sums of money but I think it will dramatically impact my EFC.

Covering living expenses for two people in addition to paying off undergraduate loans, saving etc. will make it pretty difficult for him to actually contribute a lot to tuition.

 

[MightyMoose]

I asked this question at a few interviews and always got the same answer, which gave me more confidence in it: You are eligible for the total COA determined by the school, the only difference is the 8K in subsidized loans. So, if you make more money prior to your matriculation, you will get less in subsidized and more in unsubsidized and plus loans.

They did say that a magic number is ~50k. So, if you make less than that you can still be eligible for a good portion of your subsidized loans, but either way you can still get all your loans.

 

[deleted332297]

I asked this question at a few interviews and always got the same answer, which gave me more confidence in it: You are eligible for the total COA determined by the school, the only difference is the 8K in subsidized loans. So, if you make more money prior to your matriculation, you will get less in subsidized and more in unsubsidized and plus loans.

They did say that a magic number is ~50k. So, if you make less than that you can still be eligible for a good portion of your subsidized loans, but either way you can still get all your loans.

Thanks for the response. I'm actually looking specifically at the EFC -- one of the schools I'm accepted at has a policy where they take your total cost of attendance, and then subtract your EFC from that. With the resulting number, they give you loans for one half and grants/scholarships for the other half (if I understand it correctly). They have an initiative to try to keep graduating cost under 80K (outside of any EFC contributions). Thus, the interest in decreasing my EFC.

I saw your thread about IRA's the other day. I thought I would mention the option of a Roth IRA to you -- you can contribute 5K per year (and you can still make your 2010 contribution up until tax day, so a total of 10K right now). Money in your retirement account is not considered by FAFSA in your EFC calculation, but can be withdrawn (with no penalty) or some earnings can be spent on qualifying expenses (medical, education, down payment on first home). If you weren't already aware of this, I thought I would let you know!

 

[MightyMoose]

Thanks for the response. I'm actually looking specifically at the EFC -- one of the schools I'm accepted at has a policy where they take your total cost of attendance, and then subtract your EFC from that. With the resulting number, they give you loans for one half and grants/scholarships for the other half (if I understand it correctly). They have an initiative to try to keep graduating cost under 80K (outside of any EFC contributions). Thus, the interest in decreasing my EFC.

Ahhh, that makes sense. I think the above posters idea to call and have them reconfigure your EFC could work. I'm not sure how flexible they are, but I'm guessing there have been a few people in the past who have been in the same situation. That sounds like a great program since they help you reduce your debt, assuming they can make it work next year. Maybe you can call the school and get how they calculate your EFC then you will know exactly what you are (or should be) working with prior to submitting your FASFA?

I saw your thread about IRA's the other day. I thought I would mention the option of a Roth IRA to you -- you can contribute 5K per year (and you can still make your 2010 contribution up until tax day, so a total of 10K right now). Money in your retirement account is not considered by FAFSA in your EFC calculation, but can be withdrawn (with no penalty) or some earnings can be spent on qualifying expenses (medical, education, down payment on first home). If you weren't already aware of this, I thought I would let you know!

Nice. Thanks! I wasn't aware the Roth IRA wasn't calculated in FASFA. I might have to do that. I have been trying to widdle down my income over the last few days and am planning to meeting with a financial advisor next week to see if he can help. If I get any other good ways to reallocate funds for FASFA I'll let you know.

 

[ClemsonGrad]

I've read all of the above posts but still have a few questions. I'm 25 and have a fairly low paying job (just under $40,000) which I will quit once I get into PT school (hopefully!). So, when I complete the FAFSA with my current earnings I put in multiple school codes since I don't know where I'm accepted to yet? Then when FAFSA comes back with not enough in loans I can contact the financial aid office at where I do get in to have them adjust it? Or do most schools offer financial aid on top of what you get back from FAFSA.

I really appreciate any help, my parents took care of the FAFSA stuff during my undergrad since I was a dependent. I've got approximately $26,000 in loans that I'll be deferring until I'm done with school. Does anyone know if the federal loan money can be consolidated with other loans?

Thanks!

 

[canjosh]

ClemsonGrad,

Yeah you put in multiple school codes. FAFSA doesn't present you with your financial aid package, the school does. Don't know about the consolidation question.

As for the others, I was in the same situation. I actually sat down with the financial aid office before they awarded packages, and they came through with plenty of loan money. My wife and I made close to $100K and owned a home prior to med school. Honestly, I think the FAFSA is more or less a bureaucratic hoop that we all have to jump through. Med schools are going to find a way to get/keep you in school.

 

[smarty666]

Overall, FAFSA is great for getting federal aid but like others have pointed out, I think its harder for us non-trads who decide to go back to school after working b/c they do not consider if you have any debt, such as loans, etc that you are paying back when they calculate your aid.

Best bet, is to explain your situation to your school's financial aid office and let them adjust it to your specific situation so you get the max amount of aid possible.

 

[saylorsdad]

Just to confirm what others have said my schools financial aid office does adjustments for nontraditional and traditional students all the time. The main thing to remember is you don't want anything interfering with study time particullarly money. It is med school but life still happens cars break down, kids, you get sick, ... so the generic financial aid package doesn't apply to every student. You have to prove to them that you need the money but it is not a big deal at all they don't give you a lie detector test or waterboard you. It is just paperwork and they should move on it pretty quick.

 

[BlameItOnTheOH]

thanks for all the responses...glad to know i will get a chance to explain everything that the FAFSA doesn't ask/get an adjustment from my school!

 

[LifeTake2]

A related question for anyone in the know: is it possible to choose "married filing separately" for my tax return, as a way of excluding my husband's income on FAFSA? He is teacher so he isn't making vast sums of money but I think it will dramatically impact my EFC.

No, you still have to count his income.

You can file your taxes this way, but the FAFSA is going to demand his financial info as well. While I understand your desire, unless you don't have access to his money to pay bills & living expenses (ie different households) then it would be fraud to try and not count his income so reduce your out-of-pocket.

Sorry 🙁

 

[PSYCHDR40]

I had loans for undergrad - BA & grad school MSW. I've been debating for a few years about going back to school. I finally decided before buying a house that if I was going to get a six-figure loan, it might as well be for medical school. My motivation is the Obamas who apparently paid off their six figure law school loans, so I expect I will get rid of them one day.

 

[Dharma]

My motivation is the Obamas who apparently paid off their six figure law school loans, so I expect I will get rid of them one day.

For real?

 

[anothercaliapp]

Are you submitting FAFSA for schools that waitlisted you or just the ones that admitted you? Best practice? I am thinking both.

 

[mauberley]

Both. There is no reason not to, unless you've decided against attending a school at which you've been waitlisted. You want potential schools to have your financial info as early as possible so that aid packages can be calculated and ready to go.

 

[DrDrummer]

I'm a 26 year-old who has worked for the last three years making ~ 50k as a teacher, so I'm working on this whole thing too. The Roth IRA tip is a helpful piece of knowledge-- does anyone know if that money can be deducted from my 2010 taxes, as well at all?

I'm wondering whose income to declare in the section for my parents. My dad makes less money than my mom, but I know he's going to finish doing his taxes at a later date-- is there an advantage to reporting his income as opposed to my mom's?

Also, is there any advantage to finding things to do with the money in checking/savings accounts before I file my FAFSA? Or does that money not really matter, and I should keep it liquid to help pay for the move-in period to my new city/school?

Thanks for any help in advance. This is all really confusing, especially when you keep hearing "FILE EARLY!!11"

 

[painmd87]

I'm a 26 year-old who has worked for the last three years making ~ 50k as a teacher, so I'm working on this whole thing too. The Roth IRA tip is a helpful piece of knowledge-- does anyone know if that money can be deducted from my 2010 taxes, as well at all?

I'm wondering whose income to declare in the section for my parents. My dad makes less money than my mom, but I know he's going to finish doing his taxes at a later date-- is there an advantage to reporting his income as opposed to my mom's?

Also, is there any advantage to finding things to do with the money in checking/savings accounts before I file my FAFSA? Or does that money not really matter, and I should keep it liquid to help pay for the move-in period to my new city/school?

Thanks for any help in advance. This is all really confusing, especially when you keep hearing "FILE EARLY!!11"

The Roth IRA is not deductible now. A traditional IRA you deduct now, and pay taxes when you withdraw. A Roth IRA you pay the taxes now, and take it out tax free when you retire. You do that assuming that you'll be in a higher tax bracket when you retire than you are in now.

And the rest of this thread is good info -- I made 2x what my wife made last year and will almost certainly be out of subsidized loans on that account... but I will absolutely check into re-applying for aid once I quit my job

 

[startswithb]

I'm a 26 year-old who has worked for the last three years making ~ 50k as a teacher, so I'm working on this whole thing too. The Roth IRA tip is a helpful piece of knowledge-- does anyone know if that money can be deducted from my 2010 taxes, as well at all?

I'm wondering whose income to declare in the section for my parents. My dad makes less money than my mom, but I know he's going to finish doing his taxes at a later date-- is there an advantage to reporting his income as opposed to my mom's?

Also, is there any advantage to finding things to do with the money in checking/savings accounts before I file my FAFSA? Or does that money not really matter, and I should keep it liquid to help pay for the move-in period to my new city/school?

Thanks for any help in advance. This is all really confusing, especially when you keep hearing "FILE EARLY!!11"

You can choose which parent to declare? Hmm I guess only if they're divorced?

 

[crazycooljoel]

Your school should adjust accordingly. I was hit badly when I applied to medical school in 2004. I was working and my wife was working. Neither of us had jobs when I started medical school in a new state. When I saw my abysmal financial aid package from the medical school (you'll get this well in advance if you are not wait-listed), I just called them up, explained, and asked them to please re-calculate. They did, and and I was eligible for more loans. It's scary, but they have to help you, and they will help you. It's their full-time job. BTW, we owned a home. That is not factored into their calculation (at least in the state where I studied).

AWESOME! I didn't know about most of this, now I can plan ahead and not stress as much. Thank you!