Many middle class families are losing out on financial aid opportunities because their income exceeds $50,000 a year. To qualify for the Pell grant (the foundation of need-based aid) you must earn less than $50,000 annually and complete a FAFSA application. However, if you start a small business or home based business, you can qualify for the Pell or need-based aid through tax strategies. Qualifying for need-based aid is only a number. It’s not based on you being needy.

How does this works. The Department of Education determines your eligibility based on a process call the Federal Methodology. All numbers (income and assets) presented on the FAFSA application are calculated to determine your eligibility. To qualify, your adjusted gross income must fall below $50,000. Having a small business or home-based business, you may adjust your income through deductions. For example, if your annual income (wages) is $80,000 and you decided to start a small business or home based business that same year with the intent to generate a profit, you will probably incur expenses. If your expenses amount to a $35,000 deduction and your adjusted gross income becomes $45,000, you will be eligible to qualify for the Pell grant. This would enable you to qualify for all grant programs.

These expenses you incur can come from start up costs, advertising, cellular phone use, internet services, transportation, car usage, dinning, training and list the goes on. I recommend starting a Multi-Level or Network Marketing business. Start up cost for this type of business are low and you get the same tax deduction as a large corporation. Before you decide to this, please consult with a tax preparer or an accountant.

Paul Anthony Rivers is a Financial Aid Strategist and President and founder of Sources for Students, LLC, a one stop source for college funding company. He is the author of HU$TLE! How To Get College Cash By Using Street Smarts. He has helped thousands of students obtain MILLIONS of FREE college dollars. His website is http://www.sourcesforstudents.com and email: sfs@sourcesforstudents.com