Income Adjustment Requests

How and When to Request Income Adjustments

The FAFSA makes the assumption that the best estimate of a family's current financial resources is the income and resources they had in the prior year. Due to extenuating circumstances, this may not actually be the case.

If the income information reported on the FAFSA does not adequately reflect a family's financial situation, UM's Student Financial Services staff has the authority to make adjustments to the FAFSA data that may result in a change to a student’s aid eligibility.

Examples of what will not be reviewed include but are not limited to: regional differences in cost of living, the purchase of a new or used vehicle or an accounting of personal income against monthly bills. All adjustments are made at the discretion of staff in UM's Student Financial Services.

View the adjustment options below for circumstances that may be appealed, and for steps on how to submit a request for review.

Special Circumstances

An aid administrator may use professional judgment on a case-by-case basis to adjust the student’s cost of attendance or the data used to calculate his or her EFC. This adjustment is valid only at the school making the change. The law gives some examples of special circumstances that MAY be considered (HEA Sec. 479A):

  • Change in employment status, income, or assets
  • Change in housing status (e.g., homelessness)
  • Tuition expenses at an elementary or secondary school
  • Medical, dental, or nursing home expenses not covered by insurance
  • Child or dependent care expenses
  • Severe disability of the student or other member of the student’s household
  • Parent passed away after the FAFSA was filed
  • Other changes or adjustments that impact the student’s costs or ability to pay for college.

Income Adjustment Circumstances

  • If a parent, student or student's spouse has lost a job, retired or otherwise had a substantial loss of income, adjustments can be made to the income figures reported on the FAFSA. To request an adjustment of this type, submit all of the following:

  • If a family paid a substantial amount toward medical expenses in the prior or current calendar year, an adjustment to your FAFSA at the institutional level for potential additional federal financial aid.

    Adjustments can only be made for payments actually made by the family for after-tax expenses. It can include anything that the IRS allows to be claimed, such as but not limited to doctors bills, the cost of prescriptions, medical supplies and insurance premiums paid with after-tax funds.

    It does not include bills paid by an insurance company, over-the-counter medication, or health insurance paid.

    Note: Medical expenses are already taken into consideration within the FAFSA application. The income allowance protection for medical expenses given is 11% of the annual income.

    If you (the student), your spouse (if married), or your parent (if you’re a dependent student) paid an unusually high amount (>11% of your annual income) in out-of-pocket medical costs (i.e. after insurance) submit:

  • If a student or family member was receiving a benefit that was reported as an income resource on the FAFSA, and that benefit will not continue through the academic year, an adjustment may be made for the loss of this benefit.

    The discontinuation of child support or taxed Social Security survivors benefits would be examples of adjustments that would be considered.

    Provide a written statement and supporting documentation of what resulted in the cessation of these benefits and the date the cessation went into effect and submit via email to Student Financial Services.

  • Sometimes the Adjusted Gross Income on a tax return (which is reported on the FAFSA) is inflated due to the required reporting of a one-time occurrence. Examples include: early withdrawal of funds from a retirement plan. This results in the appearance of much greater financial strength than actually exists.

    These "lump sum distributions" may be removed from the income by Financial Aid Office staff if they deem it appropriate. The nature of the distribution is taken into consideration, as well as whether it involves an actual available cash resource. If there was a cash distribution, the student will be asked how the cash was spent or invested.

    Provide a written statement and supporting documentation of what resulted in the receipt of the lump sum distribution, how the funding was spent or invested and submit via email to Student Financial Services.

  • The following situations may result in a drastic change in a family's financial strength for which the Student Financial Services staff may make changes to the FAFSA data:

    • Dependent student's parents legally separate or divorce
    • Student's parent or spouse dies
    • Student separates or divorces

    If one of these situations occurs, submit the following :

    • A letter informing us of the change in status and provides the date that the change occurred
    • Supporting documentation (e.g. death certificate, legal separation or divorce decree, etc.)
    • An accounting of which income and resources are attributed to each individual

    Tip: Oftentimes it is easiest to provide copies of all W2s as well as signed copies of the federal tax return (with all supporting schedules) for each individual. This assists staff in Student Financial Services with separating income due to changes in marital status.

    If a dependent student marries after filing the FAFSA, they may request reclassification to independent student status. To do so, they must be married, request the change and have it approved before the end of the first term they receive aid in the academic year. Students who make this request will be required to provide a copy of the marriage certificate and submit the Spousal Information Worksheet for the year.

  • For any of the circumstances below, the student should write a detailed letter describing the situation and provide documentation to support their request and submit it to Student Financial Services.

    Adjustments may be made if a dependent student's parent is enrolled at least half-time as a degree-seeking student at a college that is eligible to participate in the federal aid Title IV eligible programs. To request a review, submit documentation of the parent’s enrollment for the current academic year at another college.

    Adjustments may be made if a family is paying private school tuition at an elementary or secondary school. There must be a documented necessity for the private school education other than personal choice.

    If your current situation is not listed and you want to know if it is reviewable, please contact Student Financial Services and a staff member will assess your situation.  Not all situations are reviewable per federal regulations and any adjustments are made at the discretion of staff in Student Financial Services.

What happens after I submit my request?

  • After your appeal has been submitted, it can take up to four weeks for the review to be completed.

    Important tips:
    • To ensure timeliness in processing your request, review all your materials and confirm they contain your full LEGAL name (first and last) and UM ID (starts with “790”).
    • Make sure all documentation has been provided to Student Financial Services. Reviews cannot be processed until your financial aid file is complete, so be sure to have all your requirements submitted.

  • Respond to any requests for additional information as soon as possible.

    • If during review Student Financial Services staff has any additional questions or requires more information, they will contact you using your UM student email account, so be sure you are monitoring that address regularly.

    Notification of financial aid changes: 

    • Students will be notified of any changes to their financial aid package via their UM email address. It is essential for students to regularly check their UM email for updates regarding their financial aid status. 

  • Re-evaluation of your financial aid eligibility is subject to federal, state and university guidelines:

    Depending on the circumstance, staff in Student Financial Services can adjust figures that appear on the FAFSA resulting in a change to the student’s Student Aid Index (SAI). All adjustments made are at the discretion of Student Financial Services and eligibility can be impacted by:

    • Timeliness of your original application for financial aid (filing the FAFSA);
    • Timeliness and completeness of the submission of your appeal, the nature of the change in circumstances, as well as the availability of funds.
    • Whether or not the change in financial circumstance has an actual impact on your aid eligibility. Please note that changes to the SAI from this review do not guarantee an increase in aid, however students are encouraged to appeal in the event more funding becomes available.
    • After a review, the most typical potential outcomes are:
      • A student gains eligibility for the Federal Pell Grant or the amount of the grant is increased.
      • A student becomes eligible for more Federal Direct Subsidized Loan funds. However, there would be a corresponding dollar for dollar decrease in eligibility for Federal Direct Unsubsidized Loan funds.
    • If your SAI was established as 1500 when you completed the FAFSA, you have already been offered the maximum amount of aid possible and will not be eligible for a review.
      • Not sure what your SAI is? You’ll find it printed on the upper right side of the Student Aid Report you received after filing your FAFSA.
    • Note to graduate students: A change in SAI is not oing to make a change to your potential funding as you do not receive need-based aid.

Special Circumstances Documentation

This is a listing of some of the documents that may be requested. Since the process is reliant on documentation, please take the time to gather the requested documents and submit documentation along with the Special Circumstance Request form. When submitting contributor (parent) documents, place your student’s name and UM identification number (790#) on all documents so that they can be kept together. Also, double-check for signatures and schedules before submitting documents.

Special Circumstances Documentation Table

Circumstance

Documentation

Change in employment status and/or income

1) Submit documentation such as a termination letter from your former employer, unemployment benefits statement, or last pay stub that states "last pay stub."
2) Submit a signed copy of the most recent federal tax return and all applicable schedules (MUST HAVE handwritten signature of tax filer or full name of tax preparer with ID #) or IRS Tax Return Transcript.
.
3) Submit copies of W2s or Wage and Income Transcripts to identify the income earner(s).
4) If unemployment documentation is submitted, the documentation must be recent: within 90 days.
5) Alternative documentation: If requesting the use of more recent annual income (instead of annual income provided for the FAFSA), please provide a signed copy of the most recent federal tax return available and all applicable schedules or the corresponding year’s IRS Tax Return Transcript. .

Change in assets

If change to assets, detailed documentation regarding which asset, what it was used for and current value of asset. (Assets are not usually changed but will be evaluated on a case-by-case basis.)

Change in marital status*

1) Submit documentation to verify change in status such as court documents, signed letter from attorney, counselor, pastor, etc.
2) Submit a signed copy of the most recent federal tax return available (MUST HAVE handwritten signature of tax filer or full name of tax preparer with ID #) and all applicable schedules or IRS Tax Return Transcript.
3) Submit a copy of the most recent Wage and Income Transcript or all W2s for each source of income listed on the most recent jointly filed federal tax return and all applicable schedules of the contributor who will remain on the FAFSA. .
4) If a student is changing marital status, we may request the Spousal Worksheet. 

Contributor passed away after FAFSA was filed**

1) Submit copy of death certificate.
2) Submit a signed copy of the most recent federal tax return available and all application schedules (MUST HAVE signature of tax filer or full name of tax preparer with ID #) or IRS Tax Return Transcript.
3) Submit a copy of the most recent Wage and Income Transcript or all W2s for each source of income listed on the most recent jointly filed federal tax return of the contributor who will remain on the FAFSA. .

Change in housing status (e.g. homelessness)

Documentation from authority regarding housing situation such as from:

• A local educational agency homeless liaison (or designee), as designated by the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)).
• The director (or designee) of an emergency or transitional shelter, street outreach program, homeless youth drop-in center, or other program serving individuals who are experiencing homelessness.
• The director (or designee) of a Federal TRIO program or a Gaining Early Awareness and Readiness for Undergraduate program (GEAR UP) grant.
• A financial aid administrator at another institution who documented the student’s circumstance in the same or a prior award year. Contact our office to request an appointment to review status, if needed.

Tuition expenses at an elementary or secondary school

Submit documentation of paid tuition. Keep bills to the same tax year.

Additional family members enrolled in college - student must be enrolled half-time or more in a degree-program eligible for federal student aid

1) Provide full name and birthdate of family member, full name of college/university.
2) Explain and provide documentation to verify how the additional family member in college creates a financial hardship. Documents may include financial aid offer letter(s), bank statements, signed tax returns, etc.

Removal of one-time payment or distribution

Provide documentation that will show that the disbursement, support, income or asset is no longer a viable resource. Ex: 1099 forms, court documents, etc.

Rollover of IRA or pension included on 2022 tax return

Submit a copy of the 1099 form that indicates that the IRA or pension distribution was a rollover. If you do not have a copy of the 1099 form, we can take the most recent Wage and Income Transcript or a signed copy of the most recent tax return that listed ROLLOVER.

Medical, dental, or nursing home expenses not covered by insurance

Submit documentation to verify the amount that insurance did not cover (out-of-pocket amount). If you are submitting multiple bills or documents, please also itemize and number your documents so we can keep track of the amounts being requested. We can also accept Schedule A if the expenses were listed on the tax return. Keep bills to the same tax year. Amount must exceed 11% of the Income Protection Amount from the FAFSA calculations since a portion of the income is already protected in federal methodology.

Child or dependent care expenses

Contact Student Financial Services.

Severe disability of the student or other members of the student’s household

Submit documentation of expenses paid. Keep bills to same tax year.

Other changes or adjustments that impact the students’ costs or ability to afford college

Documentation to support assertion.

 * If submitting copy of 1040 tax form, double-check that the tax filer has signed the second page where it states SIGN HERE using a non-typed signature.

** All schedules must be submitted along with the signed 1040 tax form. In lieu of the 1040, we can accept the IRS Tax Return Transcript which is often more helpful as all the information required is on one document and the tax filer isn’t needing to search for the schedules. Signed foreign tax returns are also acceptable.