Significant increase in income during 1L - impact on financial aid? Forum

[Rule23andMe]

So, I'd like to realize some significant crypto gains this year, but I'm worried it might impact my (substantial) financial aid (t14, not a named scholarship, not HYS).

I've presumed that aid awards are 95%+ stats-based, but my parents have low income/minimal assets so not sure the degree to which some of it may have truly been "aid" (though my award roughly matched what I would've expected from my stats).

I believe the finaid office said I could plan on receiving the full promised amount, but... it is financial aid and I'm sure they have the right to lower it (equitably so, of course).

So, does anyone know how rare it is for schools give less than the original promised award?

At the end of the day I'll probably try to minimize the amount that hits my tax return before 3L to avoid the issue, but just curious if anybody might have any insight. Thanks!

[cavalier1138]

Did your scholarship explicitly say it was need-based?

If it didn't (and I'm almost certain this is the case), then you received a merit scholarship that has nothing to do with your financial need. More importantly, you won't be reporting your income to your financial aid office; they don't consult tax returns each year before processing scholarships.

[Rule23andMe]

Did your scholarship explicitly say it was need-based?

If it didn't (and I'm almost certain this is the case), then you received a merit scholarship that has nothing to do with your financial need. More importantly, you won't be reporting your income to your financial aid office; they don't consult tax returns each year before processing scholarships.

Thanks for the reply.

It's a "grant" of financial aid - I presume they keep it vague to use this primarily for merit-based awards as you'd said, but nowhere is it explicit what it is or isn't based on. I filled out the CSS profile, FAFSA, and a school-provided (detailed) financial questionnaire ahead of 1L so I'm not sure why you assume the award has 0% to do with need. You may be right, but I don't imagine we'd have to provide that much detail for a purely merit-based award (perhaps it's only to filter out high-income students, but, that would partially answer my original question). Is there anything that makes you think that's still the case though?

And as to reporting, I'll have to fill out the FAFSA again to renew the grant, so the income info would be available through that, no?

[cavalier1138]

I don't recall having to actually revise any significant information in FAFSA each year, but admittedly, I never had any major changes in my financial status during school.

I filled out the CSS profile, FAFSA, and a school-provided (detailed) financial questionnaire ahead of 1L so I'm not sure why you assume the award has 0% to do with need.

Because outside of HYS, need-based scholarships are almost never granted. When they are, I believe they're always specifically denoted as being awarded based on need and would include language about being subject to revision if your financial circumstances change. I'm guessing that your award contained language like "pleased to offer you $$$ based on your academic and personal achievements" and only included a disclaimer about maintaining good academic standing. I think you're likely imagining conditions that no one has actually imposed on this scholarship.

But shorter answer: Just call your financial aid office and confirm with them that your scholarship does not change based on fluctuations in personal income.

[Rule23andMe]

I'm guessing that your award contained language like "pleased to offer you $$$ based on your academic and personal achievements"

It did not - as mentioned it never provided any detail on what the "financial aid offer" & "tuition grant" (their terms) was or wasn't based on, though it did request to notify them if "circumstances" change (e.g. additional outside awards). Perhaps your school was simply more explicit about it being merit-based than mine is though, so I take your points regardless, and I probably am just being a little too paranoid.

I've been wary of asking them directly, but may consider shooting them an email and just being vague about the $$ amount (i.e. letting them assume I'm contemplating a much lower amount than I am) in hopes that they may provide some guidance.

Thanks!