Parental Contribution from Income

The following policies impact parental contribution from income:

Expected Year Income

The reasonableness of the contribution from parental income may be assessed based on additional factors including but not limited to: parental retirement, job change, layoff, illness, etc. The occurrence of such events enables the aid administrator to consider expected-year income in lieu of base-year income when determining the parental contribution. Parents will be required to complete the Special Circumstances Appeal Form found here.

Elementary/Secondary Tuition

If a dependent student has siblings attending private elementary or secondary schools, the amount the parent contributes for that education may be used to reduce the family's Adjusted Gross Income. If a sibling is considered to be in college and reports elementary/secondary tuition costs, these costs will be removed when determining the parent contribution. Secondary tuition costs listed for the student will not be considered as an offset. Documentation of amount paid may include canceled checks or statements from institutions.

Prior Education Loan

Parents paying educational expenses for prior years may have the documented annual amount of those expenses considered for a reduction of Adjusted Gross Income.

Housing Allowance Reported on Federal Schedule SE

When a housing allowance is taxed as self-­employment income, the amount may be added to the principals’ earned income. This will provide the FICA offset to the additional taxed income. It still must be reported as untaxed income.

Unusual Medical/Dental Expenses

If the parents of dependent students have unusually high medical or dental expenses not covered by insurance, they may have a specified amount of these costs considered as a reduction to base-year Adjusted Gross Income. Documentation may include copies of cancelled checks, insurance reports, statements from a doctor or hospital, or the amount on Schedule A of the 1040.