FAFSA and divorce

[abcmommy]

My husband has filed for divorce and I am completely unsure how to do FAFSA for my 18 yr old senior.

 

Son lived with me all of 2015; my husband did not live with us in actuality but used our address as his home

We filed JOINTLY for 2015

I have no income, but my husband has a high income

 

 

Any helpful advice? Anyone BTDT?

 

[FaithManor]

For the 2016/17 college year FAFSA is dependent on the 2015 taxes so you will use those numbers. If you divorce in 2016 and you claim him as your dependent filing ad head of household, then FAFSA the following year will be based on your tax return.

[Lori D.]

:grouphug:  First, hugs and empathy on these difficult circumstances.

 

 

Not an expert at all, and it is ALWAYS best to work directly with the financial aid dept. of the school that DS will attend, and with the live help desk people at FAFSA… But my first thoughts are that:

 

1. financial aid is based on the previous year's tax return -- so the aid for DS's 2016-2017 college freshman year will be based on the 2015 tax return

 

2. with only rare exceptions (the college student is in the military service, or is married/has dependents, or was orphaned, or both parents are institutionalized), until a student turns 24yo, a student's FAFSA and financial aid awards DO depend on BOTH parents financial information, whether married or separated, and whether or not the parent with more income is willing/not willing to pay child support or pay for college.

 

In other words, colleges are going to require a FAFSA, and it will require both your financials and the father's financials. Unfortunately, this year, that high income of ex-DH is going to knock your DS out of the running for need-based aid, as colleges automatically assume that the father of the student is willing/able to pay for his child's college, regardless of whether living with or separately from the child. Here's the info on FAFSA and divorced parents.

 

The best hope for financial aid for your DS will be merit-based aid or sports scholarship from the college ("inside" scholarships), and any possible "outside" scholarships awarded to DS by other organizations. Do be aware, that often colleges require a FAFSA even to award merit aid that does NOT depend on need, so it is really important for DS to be able to complete his FAFSA. Some schools require it be updated each year; some just require the initial (freshman) year.

 

 

To file the FAFSA for this year, you and DS will need to create an account at FAFSA, and then enter the needed tax information from your 2015 tax return. If you filed electronically, the FAFSA form can access your tax return and fill in numbers directly via the IRS Data Retrieval Tool.

 

For future years, until there is a final divorce, DS will need to talk to his father and have his father fill in tax information via that IRS Data Retrieval Tool. You, as well will have to fill in your tax return info in future years. Also, if DS has worked (or works in the future), his own financial info from his tax return will have to be entered.

 

:grouphug:  :grouphug:  :grouphug:  Wishing your DS all the best as he graduates and heads to college, and very BEST wishes to you and the rest of your children. Warmest regards, Lori D.

Edited March 4, 2016 by Lori D.

[NCMom]

For the 2016/17 college year FAFSA is dependent on the 2015 taxes so you will use those numbers. If you divorce in 2016 and you claim him as your dependent filing ad head of household, then FAFSA the following year will be based on your tax return.

 

Hmmm. For the students entering in 2017 the tax info used will also be from the 2015 return, although I'm not clear on whether this is mandatory or just something you can choose to do.  Hopefully someone else will be able to clarify. 

 

I do know that there is supposedly provision for people whose 2015 income is not indicative of their 2016 income.

 

 

Georgia

[Matryoshka]

a student's FAFSA and financial aid awards DO depend on BOTH parents financial information, whether married or separated, and whether or not the parent with more income is willing/not willing to pay child support or pay for college.

 

In other words, colleges are going to require a FAFSA, and it will require both your financials and the father's financials. Unfortunately, this year, that high income of ex-DH is going to knock your DS out of the running for need-based aid, as colleges automatically assume that the father of the student is willing/able to pay for his child's college, regardless of whether living with or separately from the child. Here's the info on FAFSA and divorced parents.

 

It's actually the opposite.  If parents are divorced or separated and not living together, you file the FAFSA with just the information from the custodial parent (although I'm not sure how that works if you get divorced when the kid is legally an adult - 18+).  This site does say if it's not legally distinguished, it's the parent who has provided the most financial support in the past year, this site says whoever the kid lived with the most, and adds it's probably the parent who listed you as a dependent.OO

 

Ooo, this site has a fairly clear explanation: 

 

When a student’s parents are divorced or separated, only one parent’s information is reported on the FAFSA. This parent is often referred to as the custodial parent. The term custodial parent has nothing to do with which parent has legal custody of the student. The custodial parent is defined in section 475(f)(1) of the Higher Education Act of 1965 as the parent with whom the student lived the most during the 12 months ending on the FAFSA application date.

 

The CSS requires info from both parents, even if divorced.

 

If someone remarries, the step-parent has to be listed on the FAFSA, but not the biological parent who doesn't have the kid living with them.

 

I'd guess for this year you'd still have to file both, as you did a joint return.  But in future, the tiny sliver lining is that ds may be eligible for more financial aid.

 

:grouphug: 

 

Edited March 4, 2016 by Matryoshka

[Lori D.]

...If parents are divorced or separated and not living together, you file the FAFSA with just the information from the custodial parent … if it's not legally distinguished, it's the parent who has provided the most financial support in the past year, this site says whoever the kid lived with the most, and adds it's probably the parent who listed you as a dependent...

 

...for this year you'd still have to file both, as you did a joint return.  But in future, the tiny sliver lining is that ds may be eligible for more financial aid...

 

 

Yes, thank you, this is what I was trying to say, but you said it more clearly ;): For this year, both parents info must be on the FAFSA, in future years, follow the linked guidelines for separated/divorced parents. :)

 

 

...The CSS requires info from both parents, even if divorced...

 

Keeping fingers crossed that OP doesn't need the CSS! 

Edited March 4, 2016 by Lori D.

[JanetC]

For the 2016/17 college year FAFSA is dependent on the 2015 taxes so you will use those numbers. If you divorce in 2016 and you claim him as your dependent filing ad head of household, then FAFSA the following year will be based on your tax return.

 

No: They are using the same tax return two years in a row due to the switch to prior-prior-year.

Because your living situation has changed, you will have to write a letter to the financial aid office explaining why the 2015 tax return does not reflect your family situation for both this year and next year (when they use the 2015 return again).

 

The FAFSA checks data against the IRS (indeed, they prefer you use the IRS retrieval tool to fill out the FAFSA if you can), so if you filed jointly with the IRS, you'll have to file jointly with the FAFSA. If you do not have access to the money at that income level shown on your tax return, you have to ask for professional judgement from the financial aid office explaining and updating your situation.

 

It really depends on the school how much they will adjust your EFC versus the FAFSA EFC.

[J-rap]

I'm sorry you're going through that.  I just wanted to add that in case your FAFSA does't accurately describe your current financial situation, you can usually file a Special Circumstances form with the school explaining your situation.  Sometimes you can get more financial help by doing that.

[elegantlion]

:grouphug:  I was in the process of divorce when I filed the FAFSA the first time, for myself. 

 

Just a note, I found calling FAFSA to ask questions not as horrid as I had thought it would be, iow they were very helpful. I called during a slow time though. 

[ThisIsTheDay]

No: They are using the same tax return two years in a row due to the switch to prior-prior-year.

Because your living situation has changed, you will have to write a letter to the financial aid office explaining why the 2015 tax return does not reflect your family situation for both this year and next year (when they use the 2015 return again).

 

So no matter how your financial situation changes, your 2015 income will count for TWO years, both 2016/17 and 2017/18? 

 

I hate to ask, but is there a link to verify? 

 

I realize that if the income changes with more favorability toward financial aid, you can request an adjustment through the school's financial aid officer. 

 

But if your income changes for 2016 in a way that would otherwise lessen your financial aid, that will not be reflected until the 2018/19 school year/FAFSA?

 

Dh and I are currently making some financial decisions.  Under normal circumstances, the decision isn't that hard, but at this point, any decision will make WILL impact on financial aid.  The right decision is critical.

[JanetC]

So no matter how your financial situation changes, your 2015 income will count for TWO years, both 2016/17 and 2017/18? 

 

I hate to ask, but is there a link to verify? 

 

https://studentaid.ed.gov/sa/about/announcements/fafsa-changes

[ThisIsTheDay]

https://studentaid.ed.gov/sa/about/announcements/fafsa-changes

 

JanetC, thank you, thank you, thank you.