FAFSA

This acronym plays a huge part in paying for college. You must fill out this application if you want any type of financial aid (grants, loans, scholarships, etc.). It calculates household size, income, being unemployed, etc and through some magical computations it decides your "need" for aid to go to college. I will be starting school Spring quarter, 2011. But my FAFSA is based on my last filed tax return which was for tax year 2009. In 2009 I had a job! FAFSA won't take into account the 2010 tax year until this fall and even then will show I made a good amount of money. I lost my job in November of 2010 so the fact that my household income has been cut in half wont be taken into account until 2012! So at the time, I do not qualify for any grants (even though there are grants for unemployed workers, etc). So for my first year or so of school, I will have to rely on student loans. Loans meaning I will have to pay them back. There are certain limits that apply but basically my student loans will cover tuition and books with a tiny amount left over for living expenses. The whole financial aid process is so complicated but I am grateful it exists because there is no way I could pay for school while I'm in school.