Parents’ Change of Income Can Affect Financial Aid

Flickr user Oregon State University

When you fill in the Free Application for Federal Student Aid (FAFSA), you have to provide detailed information about your family finances and assets as on the day you submit the application. Your Expected Family Contribution (EFC) and financial aid eligibility are calculated based on the information you provide. But what if something changes?

What if a parent loses their job?

If your parent loses their job anytime after you have already submitted the FAFSA, your EFC decreases. Lower EFC automatically makes you eligible for more financial aid.

A parent’s job loss is considered as extraordinary circumstances. Students can ask for a professional judgment review or a financial aid appeal at any time during the semester when justified by extraordinary circumstances.

Adjust your financial aid

Financial aid administrators in all colleges have the authority to make necessary adjustments on the FAFSA after reviewing your application and determining that an increase in financial aid is justified. Providing all documentation is the first step to getting a professional judgment review. Your college financial aid department will want to see the layoff letter and other relevant documentation so that they can review it and accordingly make the necessary adjustments to your financial aid package.

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