Hi, This is JR the College Money Man, giving you my Daily Scholarship and Financial Aid Tip in about two minutes.
This is episode 12, and today we are talking about What to do when a dependents family business makes less money or goes bankrupt.
Now being in business for yourself is tough. There is nearly endless paperwork, red tape and regulation to deal with, and that’s before you serve one customer. Despite all this, some small businesses will thrive. However, for some to thrive, others will fail. I always say its tough to pay for a college education in the best of circumstances. But when business takes a dip, or the unthinkable happens and a company goes into bankruptcy, it may seem like college is a luxury. However there is hope in such circumstances with regard to your dependents financial aid.
Again, 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 for your family financially. They will ask for some paperwork such as Profit and loss statement, bank statements, and other information as well. They may also ask for you to give 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.
While people most can’t control what happens to the economy and how it may affect a persons small business, parents can take advantage of the financial options available for their student when things take a turn for the worst by being proactive and helping them secure more financial aid through a well-timed appeal.
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.