Medical Expenses Not Covered By Insurance
How Medical Expenses Are Viewed in Federal Financial Aid Formulas
The standard Federal Methodology formula does not include an allowance for exceptional medical expenses. Under "FM", medical expenses are included in the Income Protection Allowance and represent 11 percent of the "IPA" value. As a result, under FM, exceptional medical expenses would be defined as those in excess of 11 percent of the IPA for the applicant.
In some cases where medical expenses related to complicated surgery, a chronic conditon or prolonged rehabilitation are extremely high, families may carry forward the expense for more than one year or liquidate assets to pay medical or dental bills. In these cases, the aid administrator may make additional adjustments to allow the family time to recoup their financial strength.
Documentation That May Be Requested from a Family
- Statement from family about circumstances
- Copy of payment plans that outline what the family will be required to pay on the debt during the current school year
- Copies of charges and insurance coverage statements
- IRS Schedule A from the latest federal tax return
Updated April 19, 2011