Will your divorce affect your teen’s financial aid for college?
Divorce can have a significant impact on a family’s financial picture, and that includes how financial aid for college is determined.
If you have a teenager who will soon be applying to college, it’s important to understand how divorce may affect their eligibility for need-based aid and which parent’s information will be used during the application process.
The FASFA and beyond
The Free Application for Federal Student Aid (FAFSA) requires financial details (at minimum) from the parent the student lived with most during the past 12 months. This parent is referred to as the custodial parent for FAFSA purposes, and it may not be the same as the custodial parent listed in a court order. If time was split evenly, the parent who provided more financial support is considered the custodial parent.
Only the custodial parent’s income and assets are reported on the FAFSA, which can sometimes result in greater eligibility for aid. However, new FAFSA rules may shift the focus from where the student lives to which parent provides the most financial support under certain circumstances. This could reduce opportunities for strategic planning based on household arrangements.
If the custodial parent has remarried, the stepparent’s financial information must also be included, which could increase the expected family contribution and reduce aid eligibility. This is something to consider when evaluating post-divorce living arrangements and financial support responsibilities.
In contrast, the CSS Profile, used by many private colleges, often requires information from both biological or legal parents regardless of custody status. This can complicate the aid picture and make planning more complex.
To help your teen get the most support possible, it’s a good idea to work with a financial aid advisor early in the college planning process. Be honest and organized with financial documents and prepared to explain your family’s structure if necessary.
Divorce does not automatically hurt your child’s chances at financial aid, but it can change the way that aid is calculated. If you have questions, speaking with a skilled legal team that understands the financial aid process can help you make informed decisions that can serve your child’s future.