<p>My mother and father are in the early stages of divorce. By the time I apply for college they will be finished. My father, although earning 60K per year, will not contribute any money to my education. My mother, who earns 70K annually, will only be able to contribute around 10K because of debt and mortgaged assets. Will their divorce significantly affect my financial aid eligibility? How would a 5K annual scholarship from my fathers place of work change the picture?</p>
<p>Thanks, Jon</p>
<p>Yes, your parents’ divorce can affect your financial aid picture as well as any outside scholarships. The way it works is that your parents income as depicted on the tax return for the year before you head off to college is the one that is used for financial aid. If they are legally separated or divorced that year then only the parent with whom you live with the most will need to fill out the FAFSA. Included in any such information would be child support or other payments that the other parent has given in that particular year. </p>
<p>Given what your parents make, you will not get any PELL grants. Depending on the college you choose, you may be eligible for some subsidized loans. </p>
<p>That would pretty much be the situation for FAFSA only schools. Only the “Custodial” parent’s finances would be taken into account. But for schools that have their own apps or use PROFILE, many also will insist on both parents’ financial statements, and that your father is refusing to pay is usually not taken into account as this is a situation that happens often in divorce situations.</p>
<p>As for any scholarships, they are usually not awarded until the end of the school year, so most kids get financial aid before they know what they are getting in terms of outside awards like scholarship you mention. It is possible that financial aid you get can be reduced (usually starting with loans and work study) by such scholarships if the amount exceeds what is determined as your need.</p>
<p>The fact that your father “will not” contribute to your education is irrelevant for financial aid purposes. Otherwise, every parent, married or divorced, would simply say, “I’m not paying.”</p>
<p>The fact that your mother has significant debt is also irrelevant (unless that debt is for such things as uninsured medical expenses). Everybody has debt. </p>
<p>The mortgages against the assets will be considered to reduce the equity in the assets. However, the remainder of the equity will be considered, but only at about 5.7% (unless that equity is in your mother’s primary residence).</p>
<p>Only one parent’s income and assets are considered for FAFSA purposes; that is the parent with whom you will be living for more than 1/2 a year. If you’re already in college when your parents divorce, it will be the residence that you go back to on vacations, etc. If you split your time, it will be the parent who provides more of your financial support.</p>
<p>For Profile purposes (or other private forms), both parents are generally considered, depending on school rules, and despite a “refusal” of one parent to pay.</p>
<p>Sorry you’re going through all of this, and best of luck to you.</p>