Expert: David Disraeli - 9/16/2009

Question
I am Eric Broker and I am a Junior in High School. Paying for college and being elligible for financial aid is a big concern to me. My mom works at a Technical College and makes about 35-45 thousand dollars, and my father is deceased. Under this income the expected family contribution would be extremely low as dictated by the FAFSA.
I also have a step-dad who does not contribute to me, my siblings, or my mother financially at all. He makes about 50-60 thousand dollars. The FAFSA requires the financial information of the step-parent and calculates the EFC the same as if the step-parent were a biological parent. My eldest sister, who is a senior at St. Thomas, filed the FAFSA her first year in college and was not eligible for any financial aid, and I don’t have any reason to believe that my situation will be any different.
Also, with only my mothers income (aka less than 50 thousand), assets would be irrelevant. Correct? This is also a concern to me. We have our house paid for (maybe around 250 thousand) and I also have a college fund with somewhere around 60 thousand dollars. In addition, I have a trust from my grandma for around 70 thousand, and also 25 thousand from when she died, which is just sitting in a cd right now. My mom also has x amount of money from when my dad died.
Is everything I'm saying correct? How can I get financial aid? Is there anyway to get past the step-dad thing? (it is actually the most unfair thing ever) Give me your wisdom!!!!


Answer
Unfair is the best word for it.  It is not based on what you receive from your parents (including their spouses) but what you "could" receive.  There is some twisted logic in that.

The trust may actually disqualify you as it may have to be counted.  It depends on what type it is and many other factors.  There are a few things you could try but they do beyond the limits of email.  I might e able to find someone like me who is an independent expert in your area.

I'm happy to talk to by phone for a few minutes if you like.  

David Disraeli, CFP
512.535.2674