<p>The FAFSA is a form that gathers information to determine eligibility for Federal grant and loan programs. </p>
<p>If biological parents are separated or divorced only the custodial parent income is used on the FAFSA.</p>
<p>If biological parents are divorced, but the custodial parent has remarried the income of the custodial parent and the new spouse are used on the FAFSA.</p>
<p>For CSS Profile Schools that require non-custodial parent income (and some schools that require this on their own form) a student may be required to provide income and asset information for both biological parents and their respective new spouses. This is not required on the FAFSA. The CSS Profile form is a separate form and is not free to submit. </p>
<p>If a custodial parent (and their current spouse if applicable) has little to no income the EFC could be zero… this would qualify the student for a $5500 pell grant, and the maximum subsidized loan… this student would also qualify for an unsubsidized loan to make the total direct loan amount $5500. This student might also qualify for work study and possibly a Perkins loan and/ or state grant and loan programs that use the FAFSA.</p>
<p>Here is the rub… most of the schools that offer the best aid also use the CSS Profile or their own form in addition to the FAFSA. On these forms often they will ask for a more detailed picture of total family assets, and ask for primary home equity (for both custodial and non-custodial family) in addition to any additional home equity. These schools will often ask for the full financial picture of custodial parent and new spouse and non-custodial parent and new spouse(if all of these exist). In the end schools consider paying for college the primary responsibility of the family. When awarding need based aid out of their own school coffers they will offer this aid to the students they want to enroll who have limited outside resources to pay for college. Whether or not your family WILL pay for college is not of their concern. </p>
<p>If a student’s custodial parent and spouse have little to no income and assets, but the non-custodial parent and spouse have high income and assets a situation could arise, even at a meets full demonstrated need school, where a student could receive full federal grants and loans ($5500 and $5500 for a freshman), any state grants or loans that use the FAFSA for eligibility, but receive no additional grant money from the university. The university expectation is that the non-custodial family will fill in the gap.</p>