FAFSA season is fast approaching, which always brings questions about who should complete this federal financial aid application.
For the 2014-2015 school, year, the Department of Education has issued new rules impacting some parents about who should be completing the FAFSA. Here is a rundown of what you need to know:
Traditional Married Couples
If you are part of a traditional family — married husband and wife and kids – it’s easy to answer who completes the financial aid forms. Both parents will share their financial information on the FAFSA.
Unmarried Parents Living Together
Unmarried parents who live together have traditionally enjoyed a FAFSA perk. Only one of the parents has had to complete the FAFSA and share his/her financial figures, but this will change beginning Jan. 1. Both parents, who live together, will be required to complete the financial aid application jointly.
Divorced and Separated Parents
If you are divorced, the ex-spouse who has taken care of the child the majority of the year will continue to complete the FAFSA. You are considered the custodial parent, with the responsibility of completing the FAFSA, based on where the child has physically lived during a 12-month period ending on the day the FAFSA is completed.
Separated parents don’t have to be “legally” separated to be treated the same as divorced couples, but they can’t be living in the same residence.
Here is a YouTube video that I recorded with Paula Bishop, a financial aid expert, the discusses divorce and financial aid:
The new federal rule requires that married, single-sex couples must both include their financial information on the FAFSA. To reflect this change, the FAFSA will now ask for information for “Parent 1″ and “Parent 2.” In the past, only the biological parent had to share his or her assets and income.
What if the single-sex couple is not married? Both partners will have to submit financial data if one of them has adopted the other partner’s child. If a partner has not adopted the child, only the biological parent will complete the FAFSA.
Here is a story I wrote for my CBS MoneyWatch blog earlier this year on this rule change:
If the student is living with a guardian, such as a grandparent or an older sibling, the student is considered an independent student. The federal government does not consider a guardian (or foster parent) a parent. As such, the student will only include his or her information on the FAFSA.
Any support a legal guardian or foster parent gave to the student should be reported on Worksheet B as the student’s income.
A Parent Has Died
If a parent dies during the year, do not include his or her financial information on the FAFSA. If the parent has died after filing the FAFSA, contact the school immediately with this information.
More FAFSA Advice
To learn more about who needs to complete the FAFSA, as well as well as how to complete it, I’d highly recommend visiting Nerd Scholar’s FAFSA Community.
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Michelle Kretzschmar of Do It Yourself College Rankings and I have been working hard on developing an online class for parents that will explain how to make college more affordable. We have designed this six-week course to help make you an empowered consumer as you navigate your child’s college choices.
This class will also be extremely valuable for high school counselors and independent college consultants, who want to help their families find generous schools.
Our class starts Feb. 12 and we will be sharing more details soon. If you are interested in learning more about the class, please email me (Lynn@TheCollegeSolution.com) and I will put you on the notification list.
We hope to see you in February!