FAFSA: Divorced Parents And Step Parents

Q: How does having divorced parents and/or step parents affect a student applying for FAFSA? More specifically, do we have to report the income of a step parent on FAFSA?

A: The FAFSA guidelines have specific rules about who to include in your financial aid application when it comes to divorced or remarried parents. Let’s break it down so it’s easy to understand.

According to FAFSA rules, the most important factor is identifying your “custodial parent.” This is the parent you’ve lived with the most during the 12 months leading up to your FAFSA application. If you’ve spent an equal amount of time with both parents, the custodial parent is the one who has provided the most financial support. This is the parent who will fill out the FAFSA.

In most cases, the custodial parent is also the one who claims you as a dependent on their taxes. This is a key factor in determining who fills out your FAFSA and which income information is required. It’s important to note that the FAFSA does not ask for the income of the non-custodial parent. However, there are a couple of exceptions and additional details to consider.

1. Non-Custodial Parent’s Income

For FAFSA purposes, the income and assets of the non-custodial parent are not required. However, FAFSA will take into account any child support payments made by the non-custodial parent to the custodial parent. This is because child support is considered income to the custodial parent and can impact the financial aid calculation.

Pro Tip: If you’re applying to a private college, some schools may require additional financial information from your non-custodial parent. Private schools sometimes use this information in addition to your FAFSA to determine institutional aid. It’s always a good idea to check with the financial aid office at the school to see if they require these details.

2. Step-Parents and Their Income

If your custodial parent has remarried and you live with a step-parent, you must include your step-parent’s income and assets on the FAFSA, assuming they are legally married at the time you’re filing your FAFSA. This is true even if your step-parent does not provide you with financial support directly. The reasoning behind this is that the government assumes that a step-parent contributes to the household’s financial well-being, and therefore, their income is considered when determining your eligibility for financial aid.

Important Note: If your step-parent is not legally married to your custodial parent at the time of FAFSA filing, their income will not be included. It’s crucial to ensure that you report your family’s situation accurately to avoid mistakes that could delay your financial aid.

3. What If My Parents Are Divorced, But Still Live Together?

It can get a little tricky if your parents are divorced but still live together. In this case, for FAFSA purposes, your custodial parent would be the one who provides more financial support, regardless of whether they live with the non-custodial parent. If both parents share financial responsibilities equally, the custodial parent is still considered the one who has provided more than half of your financial support in the last 12 months.

4. Things to Keep in Mind

• Accurate Reporting: Make sure that you report your family’s situation as accurately as possible. If you’re unsure about what counts as financial support or how to determine who is your custodial parent, consult with your school’s financial aid office.
• Tax Returns: When filling out the FAFSA, you will likely need to provide your custodial parent’s and step-parent’s tax returns (if applicable). Make sure these documents are in order before you start your application to avoid delays.
• Changes in Custody: If your custody situation has changed recently, make sure to clarify your current living arrangements with the FAFSA system. If your living situation has changed after the FAFSA application, notify the school’s financial aid office about any major updates to your family situation.

5. Custodial Parent’s Remarriage: Impact on FAFSA

If your custodial parent has remarried, your step-parent’s income will be considered, but only if the marriage occurred before you filed your FAFSA. If your custodial parent marries after you submit the FAFSA, your step-parent’s income will not be considered for that year’s application. However, it will be included in the next year’s FAFSA filing.

Tip: Be aware that your step-parent’s income might result in a lower financial aid award, as it can make your household look more financially capable. In some cases, students with step-parents may receive less aid than students with custodial parents only.

Conclusion: Navigating the FAFSA with Divorced or Remarried Parents

Applying for FAFSA with divorced or remarried parents can be confusing, but understanding the rules can help make the process smoother. Remember, the key things to consider are who your custodial parent is and whether your step-parent’s income will be considered. Be sure to provide accurate information about your family’s financial situation and consult with your school’s financial aid office if you have any doubts.

While navigating this process may seem complicated, getting it right can ensure that you receive the maximum amount of financial aid for which you are eligible. And always remember—whether you’re dealing with your parents’ divorce, remarriage, or other family circumstances, the most important thing is to be honest and clear about your family’s situation on your FAFSA application.