Families are struggling to cover the cost of a higher education with job layoffs, shrinking college funds, and fewer private loans available. There may be more help availble.
Many families are requesting reviews of their financial-aid packages to make sure they truely reflect their current financial situation. This allows families to have their expected contributions recalculated. Typically awards are based on prior year household income and this allows the family to have their current income reviewed.
This allows the school to re-evaluate students’ financial-aid packages, which could qualifying them for more aid including federal grants, loans, and need-based scholarships. This has been encouraged by the Department of Education for people who need them. A good candidate for adjustment would be families with a recent layoff or salary cut.
There are also families with hardship withdrawals from retirement accounts for things like medical bills, this might qualify for re-evaluation as the withdrawal would normally count as income on a tax return. Each school will have different requirements. Requests for reviews are best done in writing. All requests require documentation of the circumstance, such as a pink slip or copies of medical bills.
In addition, independent students not claimed as dependents on a parent’s tax return will also have an improved chance of getting an adjustment. If they experience layoff from a job or reduction in income they may also apply for re-evaluation. More information in the Wall Street Journal.
