Does unemployment affect FAFSA - worried about NYS Department of Labor benefits impacting financial aid
I'm currently collecting unemployment benefits from NYS Department of Labor and planning to go back to school in the fall. I'm really worried about how my UI payments will affect my FAFSA application. Does anyone know if unemployment income counts against you for financial aid? I've been getting $420 a week for the past 4 months and don't want this to mess up my chances of getting grants or loans. Should I report the unemployment on my FAFSA or is there a way around it? Really stressed about this whole situation.
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Naila Gordon
Yes, unemployment benefits are considered income on your FAFSA and must be reported. However, there's good news - unemployment is treated differently than regular employment income in the financial aid calculation. The FAFSA has provisions for families experiencing job loss or reduced income. You'll want to report your UI benefits under 'other untaxed income' and also look into the special circumstances process with your school's financial aid office.
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Ben Cooper
AuthorThank you! Do you know if the special circumstances thing actually helps? I'm worried they'll just see the unemployment money and think I don't need aid.
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Cynthia Love
i went through this same thing last year. unemployment definitely counts but like the other person said you can appeal it. my school reduced my expected family contribution after i explained i lost my job. just make sure you have all your NYS Department of Labor documentation ready
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Darren Brooks
The key thing to understand is that FAFSA looks at your prior-prior year income for the base calculation, but schools can make adjustments for current year circumstances like unemployment. When you file your FAFSA, you'll need to include your UI benefits as income, but then contact your school's financial aid office immediately to request a professional judgment review. Bring documentation of your job loss, your NYS Department of Labor benefit award letter, and any other relevant financial changes.
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Ben Cooper
AuthorThis is really helpful, thank you. Do I need to wait until I'm actually enrolled to do the professional judgment thing or can I start that process now?
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Rosie Harper
Wait I'm confused - if I'm on unemployment do I even qualify for school? I thought you had to be available for work to keep getting benefits from NYS Department of Labor. How are you planning to handle the work search requirements while in classes?
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Ben Cooper
AuthorGood point - I'm planning to finish my unemployment before school starts in August. I should have found something by then hopefully.
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Naila Gordon
Actually, NYS has some provisions for approved training programs while on unemployment. You might want to check if your school program qualifies for the training benefits waiver.
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Elliott luviBorBatman
I had a nightmare trying to get through to NYS Department of Labor when I needed documentation for my FAFSA last year. Their phone system is impossible! I ended up using this service called Claimyr (claimyr.com) that actually got me connected to a real person. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me weeks of trying to call on my own.
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Ben Cooper
AuthorNever heard of that but might be worth trying if I need to get documents from them. Thanks for the tip!
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Demi Hall
just wanted to say good luck with school! going back after being unemployed is tough but totally worth it. make sure you apply for everything - grants, scholarships, work study. the unemployment thing shouldn't stop you from getting aid.
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Raul Neal
I'm a financial aid counselor and can confirm what others have said - unemployment benefits must be reported on FAFSA but don't panic! The key is understanding that financial aid offices are trained to handle situations like yours. When you report your UI benefits, also complete the "Additional Financial Information" section explaining your job loss. Most schools have emergency aid funds specifically for students who've experienced unemployment. Also, consider applying for state grants early - New York has several programs that factor in unemployment situations. The earlier you start the process, the better your chances of maximizing your aid package.
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