It’s that time of year again.  No, I don’t mean the aggravation (or glee, in my case) of completing one’s (or all of your!) tax returns.  No, I mean completing the FAFSA (Free Application for Federal Student Aid).  Don’t let the name fool you- almost every institution of higher learning demands its completion, as a determinant in the awarding of financial aid.

As if this form were not daunting enough, those who are divorced, “common law” (which many states rendered illegal to preclude same sex marriage), or same-sex married and have children have a more difficult time.

[I need to digress right now.  Due to the decision (yeah, right- indecision is more like it) of our legislators to NOT avoid the fiscal cliff, many (at least 9 million) folks will be unable to file their tax returns- and, probably know their tax liability- until early February.  After the due date most colleges desire for the FAFSA form submission….]

To be honest, this may be a blessing.  After all, in these special cases (like children of divorced parents), only one parent’s income is the subject of the form.  Other times, if the more wealthy parent has the primary custody, it is more difficult to obtain financial aid.  (This is why we suggest to many unmarried parents- those whose incomes are not in the top 2%, but with disparate incomes- to consider a change in primary custody one year prior to college to the one with the lower income.)

The FAFSA, which is filed each year, which needs a completed (current-year) income tax form and requires the assertion that they have been filed, is used to determine federal financial aid, subsidized loans, Pell grants, as well as the college’s own aid packages.  The form demands information on family size, certain assets, and income levels.  In the case of unmarried parents, the custodial parent (12 months preceding the date of filing the FAFSA) is the one whose income is the determining factor; custody is not a function of the financial contribution, but the number of days the child resides in each home.  (Note: The custodial parent need not be the one who has the right to claim the child as a dependent on their tax return.)

Now, if one (or both) of the parents have remarried, then the “custodial” parent and the step-parent income are to be included as part of the FAFSA submission.  This has nothing to do with the requirement (or lack thereof) of the stepparent to contribute to the cost of college for the child.  It is simply a matter of the law and its application.

Don’t simply assume the child can be living with the lower income parent.  If the parent resides in Alexandria and the child goes to school in Charlottesville, it won’t take a mental giant to determine that there is evidence of fraud.

Parents should also be aware that some schools (particularly the elite schools) also require the non-custodial parent (and his or her spouse) to complete a FAFSA form.  Other schools (more than 250, mostly private) have the custodial parent (and their spouses) also complete a CSS/Financial Aid Profile (the College Board). More than 100 of them also require the non-custodial parent (and respective spouse) to complete that same form.

The key point to recognize is that the non-custodial parent has no right to see or examine the submission of the custodial parent… or vice-versa.  That eliminates most of the strife behind these submissions.

If the FAFSA or CSS/Financial Aid Profile submissions are in your future, consider retaining our services.  We complete them for you- at a most reasonable fee.

Share this: