Understanding Student Aid: Confusion Over Income Limits and Funding for Couples

[Jordan Joab]

According to the school my wife is attending, she will receive less federal student aid because I will be going to college. Their explanation was that since we made $20,000 last year and two people are going to college she can't receive full funding. We contacted FAFSA and they explained that each of us should receive separate funding.

To break it down even further:

- Between my wife and I, we earned $20,000 last year (two people living on $20,000 in NYC!).
- The school says that's a "lot" of money for two people.
- The school says if both of us go to school, she receives less money.
- She still has grant money left over that the school says can't be refunded/credited.

This doesn't make sense to me. Could I please get an explanation? Thanks.



Jordan Joab.

 

[DeanBH]

Is this that schools complaint board?

 

[waht]

Poverty level for two people in lower 48 states is $13,000 for 2007. Maybe they went by this figure.

http://aspe.hhs.gov/POVERTY/07poverty.shtml

 

[Jordan Joab]

Is this that schools complaint board?

No, it is not.

Perhaps someone has had the same experience and said person could tell me how they solved that problem that way I can apply it to my particular problem. Perhaps this is a common procedure for educational institutions that I was not aware of. In any case, thank you for being so helpful.



Jordan Joab.

 

[Jordan Joab]

Poverty level for two people in lower 48 states is $13,000 for 2007. Maybe they went by this figure.

http://aspe.hhs.gov/POVERTY/07poverty.shtml

Great link. The school is the one that determines how much federal aid a person receives, incorrect? This is confusing. I explained this situation to a FAFSA representative and their answer was that any funding an individual receives should not be affected by the number of people in the household attending college. Thank you for the link.



Jordan Joab.

 

[Choppy]

I would have assumed it would be the other way around - ie. if one of you is working and earning a decent paycheque, the other would not qualify for as much financial support. Perhaps though, it's just a number's thing. You qualify for Y amount of support based on a household income of X? (I don't know about such things).

My advice is to do whatever you can to avoid the debt that comes once you graduate.

One friend of mine managed to purchase a house during undergrad. I imagine he had someone to co-sign the mortgage, but basically he lived in the loft suit and rented out all the other rooms. That made him enough money to pay the mortgage and have some left over. By his fourth year he'd purchased a second house across the street.