Financial aid

[flowerofsun]

Hi guys, I have a question for you.
If my son lives in a separate state, does he still need to include his parents income (my income) for the financial aid?
(My son is 19 years old, will 20 this summer)
Or, what are the requirements to prove he is an independent to a point where he does not have to claim my income for the financial aid?
(I make 120K plus have real estate, so I feel like because of my income he has to pay more for his college)
Thank you

[Cranky]

Yes, until he is 26 (I think?) your income determines his financial aid for undergrad school. And it’s pretty hard to convince that system that he is independent- he would probably have to take a year off and be completely self supporting.

[kenner]

Yes, until he is 26 (I think?) your income determines his financial aid for undergrad school. And it’s pretty hard to convince that system that he is independent- he would probably have to take a year off and be completely self supporting.

Even with this he may be in for a fight.  Maybe things have gotten better in the last fifteen years, it's certainly worth checking on, but when I was in school even students who'd left home (or been kicked out) at 18 and had been completely self-supporting afterwards got screwed on financial aid because despite receiving nothing from their parents and in some cases not even having seen said parents in years, if they were under 26 and unmarried EFC (expected family contribution) was still a thing, there was the expectations that parents must fill out the FAFSA, all of that.  The fact that parents weren't even in the picture...too bad, good luck with those hoops.

[flowerofsun]

Thank you guys so much!!!

[secondcor521]

Whether a student is "independent" for financial aid is generally determined by FAFSA rules.  (There is a different aid scheme called CSS Profile which is used at mostly selective liberal arts colleges, and yet a third set of rules for low income kids attending Ivy League and similar.  I think both of those use the FAFSA "independence" rules but am not certain.)

The FAFSA rules are different from, independent from, and generally tougher than the IRS rules for a tax independent.

People have mentioned the age of 26.  Age is one way for a student to become independent under the FAFSA rules, but it's age 24 for FAFSA, not age 26.  Age 26 has to do with remaining on the parents' health insurance under the ACA.

There are other ways for a student to become independent:  get married, become an orphan, join the armed forces, finish undergrad and start working on a graduate degree.  See the FAFSA rules for all the details.

BTW, the FAFSA rules are changing starting next school year (2024/2025).  Google "FAFSA simplification" to read all about it (warning:  it's complicated and a bit messy in terms of the implementation).  I don't know if they've changed much in terms of the rules about when a student is independent.

[Cranky]

Also, I don’t think he would exactly save a lot of money. Presumably he would qualify for a Pell Grant, but otherwise he would just get offered more loans to make up for a lower EFC.

[lhamo]

Also, I don’t think he would exactly save a lot of money. Presumably he would qualify for a Pell Grant, but otherwise he would just get offered more loans to make up for a lower EFC.

Depends on the state/school.

Our daughter was admitted to our state flagship and, based on our EFC of 0 due to low taxable income, was offered enough aid to meet the entire estimated cost of attendance.  That included a federal work-study award of $6500, but the rest was all scholarships and grants. 

At the out of state publics where she was admitted her annual out of pocket cost would have ranged from 20-25k (Oregon State and Colorado State, both of which offered her WUE tuition reductions) to 50-60k (two UCs and the University of Colorado).  University of Oregon was in the middle at around 35k out of pocket.  Both federal subsidized and parent plus loans were part of those "aid" packages.

[Michael in ABQ]

I joined the National Guard to help pay for college. My freshman year I didn't really get any benefits as I hadn't finished my training to make me eligible. At the beginning of my sophomore year I deployed and when I returned to school the next year, I was considered independent for FAFSA. Suddenly I was getting the maximum grant/loan aid because my household income was just my drill check of a few thousand dollars per year. Plus, I now qualified for a 50% tuition waiver for veterans offered by my school.

[sonofsven]

If the parents do not live together then I don't believe both parents need to fill out the FAFSA. The custodial parent needs to fill out the FAFSA.