Verify that the information on your FAFSA is correct. You are being asked to explain your income because it was so low, or you did not have any income. You are being asked to verify that the data on your FAFSA are indeed correct because most people could not live on such a low income. If the information on your FAFSA is correct or you know that you had no income or extremely low income ($3,000 or less), continue to the next step.
Ask your school's financial aid office where you can get a Low Income Explanation Form. The majority of schools and universities have a form available on their website specifically for this purpose. If you cannot obtain one online, visit your financial aid office to request one or ask them to mail you a form. The form varies from school to school. However, the content is similar. The school wants to know how you supported yourself with the low, or no, income you reported on the FAFSA.
Fill out the form completely and explain accurately in writing how you lived on the reported income for the time period in question. Ask your financial aid office any questions you have as you complete the form. You do not want to delay your financial aid unnecessarily because you have not filled out the form correctly. If you spent the last year sleeping on a friend's couch and eating his food, explain the situation. Elaborate on your special circumstances and detail how you managed to maintain your academic schedule despite your predicament. College students can often get by on far less income than other people due to the college lifestyle and resources available to them.
Sign and return the form to your financial aid office as directed. Your signature is important because you are certifying that your statement or explanation is true and that the school should believe the income information on the FAFSA, despite the fact that the information or circumstance is unusual. If you are uncertain about anything on the form, ask your financial aid office to review the form before you submit it.