filing-the-fafsa-2015-2016-edition

Filing the FAFSA 134
• exclusion of the conversion of a traditional IRA to a Roth IRA from income 34
• exclusion of unusual capital gains, atypical one-time bonuses and worker’s compensation buyouts
• exclusion of employer reimbursement of moving expenses that were included in income
• exclusion of hardship distributions from retirement plans, especially if used to pay for higher
education expenses
• addressing volatile income by substituting an average of the last three years of income (e.g.,
taxi drivers, waitresses, commissioned sales staff and realtors all have income that may vary
significantly from one year to the next)
• U.S. Armed Forces activation of a parent or student
Although not normally referred to as an adjustment, the Higher Education Act of 1965 allows college
financial aid administrators to override a student’s dependency status from dependent to independent
when there are “unusual circumstances.” 35 See the discussion of dependency overrides in Step 3 of
Section 3.
To request an adjustment, the student or the student’s parents (if the student is a dependent student)
should call the school and ask about the school’s process for a “professional judgment review.” Some
colleges call it a special circumstances review or a financial aid appeal. Some colleges will tell the family
to write a letter requesting the review and to provide appropriate supporting documentation. Others will
have a form that can be downloaded from the college’s web site.
When writing a letter to request an adjustment, the letter should summarize the unusual circumstances
affecting the family’s ability to pay and discuss the financial impact of the unusual circumstances
(including specific dollar amounts) on the family’s ability to pay for college. The letter should also
provide sufficient information for the financial aid administrator to identify the student, such as the
student’s name, the student’s college ID number (if known), and the student’s date of birth.
It is important to include copies of independent third-party documentation of the unusual circumstances,
since the process is driven by documentation. Documentation can include copies of a layoff notice, proof
of the recent receipt of unemployment benefits (within the last 90 days), copies of medical or dental bills
and letters from doctors, clergy, social workers, child advocates, police, teachers, guidance counselors,
college financial aid administrators and anyone else who is familiar with the student’s situation. The
documentation should ideally include information about the financial impact of the special circumstance
in addition to discussing the nature of the special circumstance.
A professional judgment review should be requested from each of the colleges and universities to which
the student is applying for admission and financial aid.