Indiana State University recognizes that situations occur between the base tax year used for the FAFSA and the next two years, which may affect a student's eligibility for need based financial aid. In these cases, students may be eligible for a special circumstance appeal to use either:
- Your family's actual income from the first subsequent year
or - Your family's estimated income from the second subsequent year.
Example: For the academic year 2026-27, the base tax year is 2024. If you have special circumstances that make the 2024 income on your tax return not reflective of your current situation, you can use the actual income of 2025 or the estimated income of 2026.
Special Circumstance Appeal Allowable Reasons
- Loss of Household Income. Termination, resignation, out sourcing, relocating, or retirement impacts on household income.
- Decrease in Wages. Loss of overtime, change of position, reduced work hours.
- Death or Divorce of Spouse or Parent.
- Exceptions to Normal Income reported on the tax return in the base year. Lottery Winnings, Inheritance, one-time IRA/Pension distribution, or other one time-distributions.
- Unusual Medical/Dental expenses not covered by Insurance and exceeding 11% of Adjusted Gross Income.
- If basing your FAFSA on the first subsequent year, medical/dental expenses must be already paid and you must provide receipts showing the out-of-pocket payments.
- If basing your FAFSA on the second subsequent year, medical/dental expenses must be due and payable. Bills showing the amount due after insurance has paid must be provided. We will not adjust for future procedures or bills sent prior to insurance payment.
If you believe one of these situations has occurred submit a special circumstance appeal form. In addition, ISU may complete a verification on your file prior to reviewing your Special Circumstance Appeal. A Dependent / Independent Verification Form, IRS Tax Return Transcripts and any required documents as indicated on the Verification Form (such as W2 forms) may be requested. Please check Financial Resources in your portal to determine if these documents are needed. Review the chart below for the income information your appeal can be based on. You may select to base the review on your actual income or on your estimated income.
Appeals typically require 10 – 14 business days for processing. Submission of an appeal does not guarantee approval.
| When Student Is Attending College (School Year) | When a Student can Submit a FAFSA | Option 1 Actual Income Review | Option 2 Estimated Income Review |
|---|---|---|---|
| August 1, 2025 - July 31, 2026 | January 1, 2025 - June 30, 2026 | 2024 | 2025 |
| August 1, 2026 - July 31, 2027 | October 1, 2025 - June 30, 2027 | 2025 | 2026 |
Note: Please use the Secure File Upload to submit digital copies of your tax documents. Documents may also be faxed, mailed, or brought in during office hours. Contact a financial aid counselor for help completing any form. The student's name and ISU ID number should be clearly written on every document submitted, including student and parent tax returns.
Dependent Examples
Undergraduate Student 2026-2027 Academic Year
Scenario One: Parent lost their job in early 2025.
| 2024 Information Required for FAFSA | Special Circumstance Adjusted to 2025 Actual Federal Tax Return Information | |
|---|---|---|
| People living in household | 3 | 3 |
| Parent(s) adjusted gross income (AGI) | $40,300 | $19,512 |
| Student adjusted gross income (AGI) | $3,441 | $2,800 |
| Student Aid Index (SAI) | $1,868 | $-1,500 |
| Federal Pell Grant | $5,525 | $7,395 |
Scenario Two: One parent lost their job and the other changed jobs.
| 2024 Information Required for FAFSA | Special Circumstance Adjusted to 2026 Estimated Income | |
|---|---|---|
| People living in household | 4 | 4 |
| Parent(s) adjusted gross income (AGI) | $126,555 | $54,993 |
| Student adjusted gross income (AGI) | $3,825 | $5,280 |
| Student Aid Index (SAI) | $13,704 | $1,412 |
| Federal Pell Grant | $0.00 | $5,985 |
Independent Examples
Undergraduate Student 2026-2027 Academic Year
Scenario One: Student was working full-time in 2024 but only part-time in 2025*
| 2024 Information Required for FAFSA | Special Circumstance Adjusted to 2025 Actual Federal Tax Return Information | |
|---|---|---|
| People living in household | 1 | 1 |
| Student adjusted gross income (AGI) | $27,734 | $12,054 |
| Student Aid Index (SAI) | $6,722 | $1,658 |
| Federal Pell Grant | $0.00 | $5,737 |
Scenario Two: Student became unemployed summer 2025*
| 2024 Information Required for FAFSA | Special Circumstance Adjusted to 2026 Estimated Income | |
|---|---|---|
| People living in household | 2 | 2 |
| Student adjusted gross income (AGI) | $49,351 | $35,483 |
| Student Aid Index (SAI) | $7,593 | $1,214 |
| Federal Pell Grant | $0.00 | $6,181 |
* Graduate/Professional Students are not eligible for Federal Pell Grants. Graduate/Professional Students may borrow up to $20,500 in Unsubsidized Federal Direct Loans per year.
Budget Evaluation
Most types of financial aid may not exceed the institution's established cost of attendance. However, students may have educational expenses that exceed the allowable threshold. On a case by case base, ISU can review the student's educational costs to determine whether their cost of attendance budget is accurate. A few of the categories in which increases may be granted are as follows:
- Books and Supplies
- Purchase of Computer or Laptop
- Dependent Care/Childcare expenses
- Miscellaneous Educational expenses
To apply for a budget adjustment, complete the Budget Evaluation Form.
Note: A Cost of Attendance adjustment will not result in more Federal aid if a student has already borrowed their maximum Federal Direct Loan amount for the year. It would allow a student to borrow additional private loans or add additional outside scholarships.