Students can appeal for more financial aid

Taking a shot at getting extra financial aid never made more sense than in the fall of 2020.

The economic upheaval associated with fighting COVID-19 has cut or eliminated a string of paychecks for many parents of students.

Many college students who might have picked up extra money during the summer working as life guards, wait staff, retail clerks or bartenders couldn’t find work. Or if they did, many couldn’t work as many hours as they had. The money just isn’t there. Appeals for more financial aid were up 70% at Michigan State University through early August from the same time last year, with 394 appeals being filed thus far, according to Rick Shipman, executive director of financial aid at Michigan State University.

“And more are coming in,” he said, noting that MSU has offered $1.2 billion in financial aid so far to more than 60,000 applicants.

“The primary reason for appeals this year is loss of income and most of that stems from coronavirus disruptions,” Shipman said.

“Some parents have lost their jobs entirely while others have had significant reductions in earnings as employers had to cut back on hours or pay rates.

“Tragically, some have lost family members, which introduces significant and often complex changes in their financial situation.”

Experts say colleges can take anywhere from two days to two weeks to process an appeal, depending on the college and staffing levels.

But taking the time to appeal could result in an extra $3,000 to $5,000 or so in financial aid, some experts say.

How do you request more aid?

The first step is to contact your college directly to go through what’s needed for an appeal.

Shipman said that too often, those appeals from families who not have reached out to the financial aid office first tend to be incomplete.

The best bet: Don’t wait until the last minute to ask for extra help. The pool of money is limited, and more students could be looking for extra assistance amid this year’s dramatic job losses.

“Even before the pandemic, job loss and income reductions were the number one reason why families would appeal for more financial aid,” said Mark Kantrowitz, author of “How to Appeal for More Financial Aid.”

“As soon as you get the layoff notice, file an appeal.”

Families should realize, he said, that the pandemic could make the process more time consuming, too.

“Some colleges have an appeals committee that reviews financial aid appeals,” Kantrowitz said. “It is more difficult for them to meet remotely, even with Zoom. They need to be able to share the documents securely.”

Students who will attend college this fall are receiving financial aid based on the income the families had two years ago, as submitted on the Free Application for Federal Student Aid.

Yet given the hardship that has occurred since March, the numbers on your 2018 tax return may not reflect a family’s ability to pay for college now.

You’d need to file an appeal for more financial aid after major life-changing events, such as a divorce, disability, death or job loss. Students may ask a school to reconsider how much money the family can afford now to contribute to cover their bills.

Colleges may make an adjustment to an aid package relative to the change in income, Kantrowitz said.

He noted that colleges can take into account the money you made in any 12month period if data from 2018 fdoesn’t reflect your ability to pay for college during the coming academic year.

“Most often, they will choose to estimate income for the current calendar year,” he said. “Or the calendar year that overlaps with the academic year.”

So they’d take into account the salary and wages that you received until the date of the layoff, plus any severance, plus any unemployment benefits.

But if that total for some reason exceeded your annual wages in 2018, the college wouldn’t make an adjustment for the 2020-21 year.

It might get trickier if the extra $600 a week in federal unemployment benefits drove up your total income.

“But since that has run out, it might be that their total income for the year is less than before, in which case they will get some additional aid,” Kantrowitz said.

Some colleges could look to the next year and may figure that unemployment benefits will end and severance will run out, he said.

Remember, the extra aid could include more student loans in some cases, which would need to be repaid.

Look at your COVID-19 expenses

Students should consider added expenses, too, as a result of social distancing and other measures put into place to combat the virus.

“If a student needs a computer or internet access because their classes have moved online, they should appeal for the additional expense,” said Kantrowitz, who is also publisher and vice president of research for Savingforcollege.com.

“If a student is disabled and was receiving an accommodation at the college, but now has to buy the same equipment for home use, they should appeal for additional financial aid,” he said.

Be ready to support your claims

But remember, you cannot file an appeal only if you’re anticipating a layoff.

Be prepared to pinpoint and document the specific financial upheaval, such as a job loss, furloughs, reduction in the family’s income and extra expenses associated with the pandemic. Focus on circumstances that are beyond the family’s control.

“Colleges focus on actual changes, not hypothetical or speculative changes,” Kantrowitz said.

Other key points to successfully appealing for financial aid include:

• Write a one or two page letter of appeal. Kantrowitz suggests that you don’t ask for a specific dollar amount but summarize what happened to the family’s finances.

• Get copies of documents to back up your claim of financial hardship. You’ll want copies of layoff notices; copies of paperwork involving unemployment benefits; medical bills; and letters from outsiders, such as school counselors and doctors, who might be familiar with the family’s situation.

All federal financial aid requires a Free Application for Federal Student Aid, as does much of the financial aid from many colleges.

Most families who want to appeal will be updating the data submitted through the FAFSA.

Kantrowitz noted that the changes to the FAFSA data elements must be made by the college.

“Families cannot appeal for more financial aid by changing the data elements on the FAFSA themselves,” Kantrowitz said.

“If they try to do that, it will get rejected. Changes have to be approved by the college and backed up by adequate documentation.”

“The primary reason for appeals this year is loss of income and most of that stems from coronavirus disruptions.” Rick Shipman, executive director of financial aid, Michigan State University