job loss can affect the amount of financial aid a student receives

What Should I Do If My Parent Loses Their Job/Is Laid Off While I Am In College: JR’s Daily Two-Minute Financial Aid Tip


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Episode 11

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This is episode 11, and today we are talking about what to do if a parent loses a job while a dependent student is in school.

While there are many talking about economic recoveries and the jobless rate, we all try to be thankful for the work we have. Especially while a child is entering or currently in college. Children remain dependents for financial aid purposes until the age of 24 in most cases. It hard enough to pay for a child’s education even in the best of circumstances, however after a layoff it could be devastating.Getting laid off will usually lead to a lower expected family contribution (EFC) and higher financial aid overall: Make sure you put in a financial aid EFC Appeal right away when this happens

 

CLICK HERE TO SIGN-UP FOR JR’S FREE FINANCIAL AID TIPS NEWSLETTER!

 

Luckily, there is hope for parents post lay off or slowdown. The moment a parent receives either a federal WARN ACT letter, or notice their job will be Terminated, regardless of reasons, they should inform the office of financial aid. By informing the office of financial aid in a timely way, you may cause your student to be eligible for a whole lot more financial aid.

When calculating the expected family contributions or efc, the FAFSA uses last years information to calculate what they think family’s should be able to contribute to a child’s education. However, circumstances do change, and the office of financial aid is able to account for this.

Contact the office of financial aid and ask to speak to someone about an EFC REDETERMINATION and financial aid appeal. Inform whomever you speak to what the circumstances are and how things have dramatically changed. They will ask for some paperwork such as a warn-act letter or statement of unemployment award, possibly other information as well. They may also ask for you to provide a written statement of your change in income as well. Provide that information to them ASAP and keep in contact with them. Respond to all inquiries by letter or email quickly as well.

An EFC Redetermination appeal needs to be filed right away when ever there is a layoff of job loss among parentsWhile people can’t always prevent being laid off, parents can prevent their layoff from harming their college age kids by being proactive and helping them secure more financial aid through a well timed appeal.

CLICK HERE TO SIGN-UP FOR JR’S FREE FINANCIAL AID TIPS NEWSLETTER!

Have a problem with financial aid or scholarships? go ahead and send JR a tweet @ CollegeCashMan. Thanks for listening to JR’s Two Minute Financial Aid Tips at www.collegemoneyman.com.

The College Money Man Podcast, and JR’s Two Minute Tips are available for subscription for FREE via iTunes, and Stitcher. New episodes of 2-Minute Tips are released everyday Monday thru Friday, and our weekly broadcast is released each Wednesday. Subscribe, like, and comment! Download and get your dose of financial aid help on the go.

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