Aug
04
2011
Combined income and business taxes. Will it drastically affect my FASFA results.?
My parents make around 50K a year and they own a small business. They said that they combine our business and personal taxes. They think there is no way I’ll qualify for any federal aid for college. The business makes over 250K a year if that helps.
This conversation was published at Accounting Services of Charlotte, NC
Tagged affect, Business, Combined, drastically, FASFA, Income, Results, Taxes
racerxfactorAugust 4, 2011 at 5:57 pm
claim yourself independent. that’ll help. generally the lower your income the more money you’ll get
n wAugust 4, 2011 at 6:16 pm
If you have contact with your parents, you will not be able to claim yourself as independent. Schools can do a ‘dependency override’ for students under the age of 24 that do not have contact with their parents due to extenuating circumstances, but it not an automatic approval. Schools have different processes for students in that situation.
Also, a common misconception is that Federal Aid is just grants. Federal Aid includes grants and loans. Employment income as well as asset information is included on the FAFSA. Are there any other members in the family? If so, is anybody else attending college? There are many different factors that go into the FAFSA calculation. Even if you are not eligible for the PELL grant, you will still be eligible for federal loans. Federal loans are called Stafford loans. There are two kinds, subsidized and unsubsidized. The government pays the interest on the subsidized portion while you are in school. The sub loan is also need based. If the Dept of Ed determines there is a need for the sub portion, it will be interest free while you are in school. As a dependent student, (under the age of 24) your parent can apply for the Parent Plus Loan. This is a credit based loan. If they do not get approved, you will be eligible for more of the federal stafford loan.
If you are a freshman, you will be eligible for at least $3500 in federal loans. If your parents get denied for the Plus loan then you will be eligible for another $6,000 in federal loans as long as you are in full time. The first $3500 can be subsidized. If it is determined that you are not eligible for the sub portion, you can then get the $3500 in unsubsidized loan.
I hope this helps!
silenceAugust 4, 2011 at 7:01 pm
i know how u feel man, im freakin out too cuz my mom alone makes 120k while my dad makes 100k. im pretty much screwed, and they both own some land which is accounted for as well. plus my parents said they are not going to help me at all, because they say they worked to pay for college, so can i, BS, they are dumb and im going to have to be a full time student with probably 2 jobs, morning and night, oh joy! hey at least u know there are others like u, good luck man. at least try for aid though.