What Happens If Your Finances Change After College Decision Day?

This week, millions of students decided where they plan to go to college in the fall. But there is a lot of time between now and then, so what do you do if you or one of your parents loses their job and the college you chose no longer looks affordable? Thankfully you can appeal for additional support if the change is big enough.

The income information used to determine financial aid eligibility is two years old when students get their financial aid offer for the academic year. For those with no changes in their financial situation, this likely poses no problem. For those who have lost a job, seen their income drop, or had some other significant economic shock, the financial information on FAFSA is massively out of date. Submitting an appeal based on changed financial circumstances is one way to get some additional help paying for college.

How Do Financial Aid Appeals Work?

The financial aid process begins with the Free Application for Federal Student Aid, which most students complete early in college search process. The FAFSA is the federal form you must complete to be considered for any financial aid from the federal government, your state, or one of the colleges you hope to attend. The form asks you to provide detailed financial information for yourself (and your parents if you are younger than 24 or meet some narrow exceptions). Once you have completed the application, you get your Expected Family Contribution (EFC) number. This number plays a significant role in determining what types of financial aid you qualify for and how much total financial aid you can receive. The lower that number, the more types of aid and total aid dollars you will be eligible for, and vice versa.

If, for some reason, you never completed a FAFSA but think you might qualify for some help now, the starting point will be getting it filled in and sent off to the college you plan to attend. The next thing to do is figure out if you have a solid reason for appealing for more financial aid.

Job losses, job changes that mean a lower income, unusually high medical expenses, divorce, or separation that changes family income, the death of a parent, the loss of a home or business in a natural disaster, and the loss of child support are all reasons you can request that your financial aid be re-evaluated. For example, if a parent is laid off and the family income decreases significantly, that could mean some additional help. Or, if you are an older, independent student and have decided to quit your job to go back to college, your income from two years ago is probably different than it will be when you stop working. Both of those circumstances could lead to more help.

Students with young children can seek additional support to account for any childcare expenses they have.

Who Makes The Decisions?

Appeals are all decided by the financial aid staff at the college you plan to attend. If they approve, financial aid staff can adjust your financial aid information based on these appeals. Reviewing appeals takes time, so to the extent possible, complete any forms your college asks you to fill in and provide supporting evidence, such as a termination letter for a job loss or invoices for unusually high medical expenses.

Even though the financial aid appeal process can be frustrating and confusing, it is still worth attempting. Some resources can make it faster and simpler to submit an appeal. For example, Swift Students is an excellent free tool that helps students create appeal letters. The tool walks you through creating an appeal, providing prompts and tips to create a customized appeal letter to submit to the school you are asking to reconsider your aid eligibility.

Does An Appeal Always Lead to More Aid?

There are some caveats to financial aid appeals. Just because you have had a change in finances does not mean you will automatically be eligible for more financial aid, even if the request is approved. If, at the end of the appeal, your EFC is lower than it was with your original information, then you might be eligible for additional grant funds. Some institutions will increase federal and state grants if you become eligible for more help but not institutional dollars because they have limited funds available.

It is also possible that an appeal leads to no more financial aid because you already receive the maximum amounts available, or it reduces your EFC but not enough to change your grant eligibility. For example, a student with a zero EFC might not see increased support even if there has been a financial change for them or their family. Theoretically, a student with a zero EFC already receives as much financial aid as they can. Even if that is the case, it can still be worth asking the financial aid office if any additional help is available; some institutions can help with transit subsidies or have emergency aid programs to provide extra assistance. They might also be able to connect you with public benefits.

Navigating the financial aid appeals process can feel daunting, but if your finances have changed and you need extra support, it is worth pursuing every avenue that can lead to more financial aid.

Read More Articles Like This

Financial Aid Is Changing. How Will It Affect Your Family?

Updated FAFSA Launch Officially Delayed Two Months To December

Tax Breaks For 529 College Savings Plans To Get More Generous

Paying Your Student Loans Could Help You Save For Retirement