An Employment Change Resulting in a Significant Reduction in Income
We understand that there are many situations that could result in a reduction in financial resources, especially given the state of our economy over the past several years.
Within any given year, your employment or income could vary significantly from changes in overtime availability, full- or part-time jobs may end or begin, or unemployment benefit options may be changed or extended throughout the year. This uncertainty can be extremely stressful for a family, especially when trying to finance a college education.
When you apply for aid in October, the FAFSA calculations are based on the prior-prior calendar year's financial information and tax documentation. If you've experienced a significant reduction in pay due to one of the qualifying events listed below, however, we will reevaluate your financial aid award the following January, when finalized financial information (W-2s, 1099's, etc.) is available.
This means that your financial aid award will not change until January or February, at which point it may be retroactively adjusted. This allows us to award based on the Department of Education (DOE) expectations of Prior-Prior Year (PPY) or making a professional judgment of the most current calendar year. We understand this may result in a financial burden for the year, and we will work with you to determine the best financing options available until your financial aid award can be reevaluated.
The following events will qualify you for reevaluation of your financial aid when financial documentation is available in January:
- Job loss/termination
- Wage/salary reduction
- Mandatory furlough
Business Owners & Salespersons
This process isn't intended for business owners and salespersons who may experience fluctuations in business income or commission, respectively, from year-to-year.
Instead, it should be for job loss/termination, wage/salary reductions, and mandatory furloughs from independent employers (other than your business). However, should your loss be significant, documented, and taxes are filed by the end of the academic year, your submission will be considered and reviewed by our committee.
Changes in income related to businesses will be taken into consideration when a student applies for financial aid the following year using actual tax return data.
Additionally, families should be aware that data must be collected from the entire household who wishes to appeal on the basis of income loss (i.e., wage statements must be received for all wage earners) to determine the net change in household income for the current aid year. Applications submitted citing only one family member's change in earnings will not be considered.
When considering financing options, we recommend looking into additional federal student or parent loans.
