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I am so glad I am digging further on the correct answer for someone who obviously live in a household that makes under $50,000 but may not answer to question #34 "eligibility to file a short form " question correctly :

From http://www.life.edu/newlife/FinancialAid/applic03.html
Answer "YES" if you want to be reviewed for Federal College Work Study Employment eligibility.

From http://www.people.memphis.edu/~egoffice/fafsakeys.html
Question # 34 In addition to grants, are you interested in "work-study" (which you earn through work)? {You must answer "Yes" to this question to be eligible.}

I searched through many individual college financial web sites and they all claim the same information so perhaps the FAFSA person I spoke to on the phone was correct .

By Easydoesitmom (Easydoesitmom) on Thursday, January 08, 2004 - 01:27 pm: Edit

Continued for anyone who wants to finetooth it :
http://www.usi.edu/finaid/FORM1040.ASP

( There is still nothing about one capital loss from a stock sale ; if I had know , I would have rolled it it into H's IRA but it wasn't much . What a hassle ! )