For college financial aid, a child cannot have two custodial parents. The criteria for being the custodial parent has nothing to do with the actual custody awarded by the courts, decision making powers, or who gets to claim the child on the tax return. It is determined, by the time spent in the 365 days prior to the day the FAFSA is filed , with the parents. If it’s a tie, the parent who gave the most financial support is the custodial parent. It can make a difference when there are unequal financial situations for parents to make sure that the custodial parent for fin aid purposes is the one that can bring in the most financial aid.
I have a close friend who did this. She makes too much for her son to get fin aid. But her ex’s financials make the kid PELL eligible. Even at a PROFILE school, by making her ex the custodial parent, and herself as NCP, there was a nice piece of aid ($20K in grants including PELL) offered in fin aid to her son. Since both parents live locally, it was not difficult for the young man to make sure he spends a bit more time, more nights with dad than mom.
Actually, the “tiebreaker” on the FAFSA if the kiddo lives equally is the parent who provides the most support. In most cases, this is the parent with the higher income…but not all. There could be cases where the parent with the lower income actually provides more support than the parent with the higher income.
@mom2collegekids “NCP Profile is not a scam. If YOUR CHILD is asking for another entity to help pay for her schooling they have the right to check to see if her bio parents’ households can FIRST PAY”
well, no. of course it is a scam. the fact that it is my child trying to get money (or really, a reduced price) does not change the fact that it is a scam. legal, but a scam nonetheless.
they have no right to know anything about either parent’s finances. they cannot sue for that information if the parents choose to keep it from them. they only have the right to DENY need-based grants if they aren’t satisfied that there is need.
I don’t think NCP PROFILE is a scam at all. It’s what most of the more generous colleges have decided should be the way things work in terms of who pays for a student’s education. Both bio parents and the step parents is the way it usually works. Makes no sense if any of those involved are multi millionaires and the kid gets financial aid, given the scarcity of funds at most schools. Especially given, what even full need students often have to scratch up. So you phase the finanicials from multi millionaires, to well to do to upper middle class, as you start getting into shades of when fin aid is offered. Many of these schools do not hit up NPC households as hard as primary; some schools do exempt steps if there are two bio parents on the hook. If there were more clarity in the formulas and processes, it would help. RIght now, one is shooting at the fin aid target board in the dark. NPCs have improved thigs drastically in this regard, but not for NCPs as those cases cannot be accurately estimated by those calculators.
FAFSA has no right to know anything about either parent’s finances either. A custodial parent who refuses to fill out the form and update abd verify it, file taxes earlier than usual, will prevent the student from even getting loans.