Pell grant...I am a displaced worker, I had to borrow money from my retirement account...

by Andrea
(Cincinnati, Ohio)

to make ends meet. Will my daughter still be able to receive the Pell Grant?

ANSWER:

Whether she immediately qualifies will depend on the family's income for 2010. If your adjusted gross income was $31,000 or less, she will get an automatic "0" EFC (because you are a displaced worker) and she will be eligible for the maximum Pell grant.

If your adjusted gross income is $49,999 or less, her EFC will be calculated with a simpler formula, where assets will not be considered.

If her EFC is anything but "0", talk to the financial aid office at her college about filing an appeal. A financial aid administrator has the authority to change data elements of a student's FAFSA (which neither you nor your daughter can do).

It is common practice for a family whose source of income has been stopped (displaced worker status) to have their EFC adjusted to "0". This started as an "unofficial" practice, but has since been approved by the Department of Education and is likely to continue for several years,at least.

The first step is to file the FAFSA as usual. If it is selected for verification, these documents will have to be submitted before any adjustments can be made. The next step is usually a financial aid appeal letter.

The important thing is not to give up your college plans, even if her student aid report does not show that she is eligible for a Pell grant. If the school has any reasonable basis to adjust her FAFSA (and the displaced worker status is considered the most valid reason) it will. After all, a Pell grant is federal money- not the school's. They have no financial motivation to deny an appeal.