Does unemployment affect FAFSA application - Washington ESD benefits impact on financial aid?

Yes, unemployment benefits are considered income for FAFSA purposes. You'll need to report your total UI payments from Washington ESD on your application. However, this doesn't necessarily mean you won't qualify for aid - the FAFSA looks at your overall financial situation.

I was in a similar situation last year when I was collecting UI benefits and applying for community college. The unemployment income did affect my EFC (Expected Family Contribution) but I still qualified for a Pell Grant. The key is being honest about everything on your FAFSA.

wait does this mean if I made more on unemployment than I would have working part time that it actually hurts my financial aid chances? that seems backwards

I've been helping my daughter with her FAFSA applications and we discovered that if you're receiving unemployment benefits, you might want to look into using the Data Retrieval Tool. It automatically pulls your tax information, including unemployment benefits, directly from the IRS. Just make sure your Washington ESD benefits are properly reported on your tax return first.

Actually, there might be some special considerations for students who are unemployed. I remember reading something about how schools can make adjustments to your FAFSA if your unemployment situation changes. You should talk to the financial aid office at your school about this.

Just went through this whole process myself. One thing to keep in mind is that if you're still receiving unemployment benefits while you're in school, you need to make sure you're meeting the work search requirements. Washington ESD has specific rules about students and UI benefits.

This is exactly why I hate dealing with government paperwork. First you need unemployment to survive, then it screws you over when you try to get financial aid for school. The system is rigged against working people.

Does anyone know if the amount of unemployment benefits matters? Like if I only collected UI for a few months versus someone who collected for the full year, would that make a difference on the FAFSA?

Something else to consider - if you're planning to work while in school, you might want to estimate that income on your FAFSA too. The form asks for estimated income for the upcoming year, not just what you made in the past.

I work at a community college and see this situation all the time. Students who received unemployment benefits can still get financial aid, but you need to be completely honest on your FAFSA. The worst thing you can do is not report income that the government already knows about.

been there done that. unemployment benefits definitely count as income but it's not the end of the world for financial aid. just make sure you report everything correctly and you should be fine

One more thing to think about - if you're currently receiving unemployment benefits and plan to start school, you should probably give Washington ESD a heads up about your enrollment. They might need to adjust your claim or requirements.

What about state financial aid? Does Washington State have any programs that might be more understanding of people who've been on unemployment?

Honestly, the whole process seems overwhelming. Between dealing with Washington ESD, filing taxes, and now the FAFSA, it feels like you need a degree just to get a degree.

Just to add - if you're working with a tax preparer, make sure they know you're planning to apply for financial aid. They can help make sure your tax return is filed correctly for FAFSA purposes.

Does the timing of when you receive unemployment benefits matter for FAFSA purposes? Like if I was on benefits at the beginning of the year but found work later, would that be viewed differently?

This thread has been super helpful! I'm in almost the exact same situation as the OP. Going to save this info for when I fill out my FAFSA next month.

Final thought - remember that receiving financial aid while having been on unemployment benefits is totally normal and nothing to be ashamed of. The whole point of these programs is to help people get back on their feet, and education is a great way to do that.

If you're still having trouble reaching someone at Washington ESD about how your benefits might affect your school enrollment, you might want to check out claimyr.com. I used their service to actually get through to a real person at Washington ESD when I couldn't get through on my own. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Really helped me get the answers I needed about my specific situation.

I went through this exact situation two years ago when I was laid off from my job at Boeing and had to navigate both Washington ESD benefits and FAFSA applications. Here's what I learned: Yes, your unemployment benefits absolutely count as income on the FAFSA, but don't let that discourage you from applying for aid. The key things to remember are: 1) Get your 1099-G form from Washington ESD as soon as it's available (usually in January), 2) File your taxes early so you can use the IRS Data Retrieval Tool on your FAFSA, and 3) Be completely honest about all income sources. I ended up qualifying for both federal and state aid even with my UI benefits reported. Also, once you start school, make sure to update Washington ESD about your class schedule - they have specific rules about students collecting benefits. The financial aid office at your school will be your best resource for navigating any complications. Don't give up on your education goals because of this temporary income situation!