Financial Aid

The Free Application for Federal Student Aid (FAFSA) asks several questions that determine your status as either a dependent student or an independent student. The difference between the two centers on the degree of access the student has to financial resources from their parents. Whether you are considered dependent or independent for the purpose of the financial aid application in turn determines the method by which your aid is calculated and the maximum amount in Stafford loans that you can borrow.

Most traditional college students are dependent – even if they are paying their own way through college or no longer have a relationship with their parents. There are special circumstances in which a traditional college student would be considered independent that will be explained here.

However, if you are like the growing number of non-traditional students returning to college or starting for the first time, even if you have the financial support of your parents for the costs of your education, you may be considered independent for the sake of the financial aid application. In fact, in 2000, independent students made up 37% of undergraduates in both public and private 4-year schools, and 64% at community colleges.*

Students are classified as dependent or independent because federal student aid programs are based on the principle that students (and their parents or spouse, if applicable) are considered the primary source of support for postsecondary education.

The philosophy of the federal government is that it is the parent’s responsibility to provide for their children’s education. Your parents’ ability to pay is considered when deciding your eligibility for financial aid, not whether they actually give you any money.

The federal definition of an independent student is one who can answer yes to any of the following questions, for the 2008-2009 filing year:

1. Were you born before January 1, 1985?
2. Will you be working on a degree beyond a bachelor’s degree, such as a master’s or doctorate, in school year 2008-2009?
3. As of the date you will be submitting the FAFSA, are you married? (Answer yes if you are separated, but not divorced.)
4. Do you have children who receive more than half of their support from you, or do you have dependents (other than your children or spouse) who live with you and receive more than half of their support from you, now and through June 30, 2009?
5. Are you an orphan or ward of the court or were you a ward of the court until age 18?
6. Are you a veteran of the U.S. Armed Forces?
7. Are you currently serving on active duty in the Armed Forces for other than training purposes?

Applicants who answer “no” to all of these questions are dependent students and are required to report parental information on the application.

In unusual circumstances, a student who does not meet any of these criteria may still be considered independent if a compelling case can be made to override the dependent status. This can only be done by a qualified financial aid officer and is very rare.

Dependent Students

Unless you meet any one of the criteria stated under Independent Student Status or there are some exceptional circumstances, you will be considered a dependent student for financial aid purposes.

Exceptional circumstances include but are not limited to:

• Your last surviving parent died after you first applied for financial aid.
• You and your parents are separated and you have been granted refugee status by the U.S. Immigration Service.

Either of these circumstances can be considered, but do not automatically give you independent status. All circumstances must be documented before consideration. If you believe your circumstances may be one of these exceptions, please see a financial aid counselor at your school or at a prospective school.

You should be aware that you are not automatically independent for financial aid purposes simply because your parents stop claiming you as a tax exemption or refuse to give you support for your college education. Your parents’ unwillingness, inability or reluctance to help pay for your educational costs does not make you independent. Becoming emancipated or qualifying for in-state tuition at a public institution also does not mean that you are independent for federal financial aid purposes. In cases where you do not qualify as an independent student but you receive no parental support, counselors in the financial aid office can provide you with information about alternative financing and employment opportunities to help you pay for your college expenses.

Independent Students

A common misconception is that by virtue of not being claimed on your parent’s income tax for two years, you can become an “independent” student.

In unusual circumstances, a student may be able to make a compelling case for their inability to provide the necessary information on the FAFSA. Such examples are:

• The parents reside in a location where mail delivery does not exist.
• The parent is mentally handicapped.
• The student suffered documentable parental abuse and contact with the parent would put the student in danger.
• The student was abandoned by parents
• Both parents are incarcerated or institutionalized.
• Both parents lack the physical or mental capacity to raise the child
• The parents whereabouts are unknown or the parents cannot be located
• The parents are hospitalized for an extended period
• The student was living in an unsuitable household (e.g., child removed from the household and placed in foster care)
• A married student’s spouse dies or student gets divorced.

Reasons that are NOT considered for changing status are:

• The student has been supporting his/herself for a time.
• The student has been supported by other relatives or friends for a time.
• The student does not live with his/her parents.
• The student is angry with his/her parents and wishes not to speak to them.
• The parents are able but unwilling to provide their information.
• The parents are living in another country.
• The parents refuse to contribute to the student’s education;
• The parents do not claim the student as a dependent for income tax purposes.

Dependency Overrides

A dependency override is when a financial aid officer changes the status of a student for the purpose of financial aid from dependent to independent. It is a very rare occurrence and typically involves additional paperwork, verification and third-party referrals. Overrides are only done for students in exceptional mitigating circumstances, and not for families who simply want to change how their student’s education is financed.

* Independent Undergraduates, 1999-2000. National Center for Education Statistics. http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2005151