Is anyone else in this conundrum? A step parent’s income throws any financial aid hopes down the drain. However, step parents income cannot necessarily be counted on to supplement the step child’s college expense payments, thus limiting a child (who with bio- parents would receive some need dollars) to only inexpensive in-state public schools? I am so frustrated with this, because of course, step parent cannot be 100% responsible for step child’s college payments. However, it is penalizing them. It’s a catch 22. That income is counted, but unable to be used. FAFSA really should not work this way. Thoughts? Experience?
It is what it is. Some people wait to marry after the last FAFSA is filed.
Sit down with the step parent, and get honest about where the money can come from for the kid’s education. Can the step carry all the household expenses while the bio parent’s income (and maybe some money from the kid’s other bio parent if there is one) goes to pay for the kid’s education? If at least some of the bio parent’s income is needed to keep the family afloat, then how much is going to be available to pay toward the kiddo’s education? Once the two of you are clear about the limits, let your kid(s) know so that all of you can be on the same page about the money as you go through this process.
One kid, two parents, no divorces or remarriages here, but we still couldn’t afford the education we might have liked to give our kid. She commuted to the local community college for two years, then finished up at an in-state public U. She turned out fine and is fiercely loyal to both the CC and the state U.
My ex remarried right before kids started college (without letting me know so I could have brought this issue up), which threw a wrench in for us. Schools don’t care. Get a commitment from the ex of what they will pay, if anything. Figure out what you can pay. Add in federal loans, summer earnings, and a part time job for kid during school year (say 10 hours per week). That is your budget. Make sure kid is clear on the budget early in the search process.
Then look at in-state publics or states with reciprocity, schools with big merit, 4 years they can commute to, or CCs with arrangements for transfers to good 4 years for the last 2 years of the degree.
It is what it is. Schools won’t change their policies. We can suggest schools out here if you give info on your state, budget, and kid’s major. Gender is useful to know, and any hooks (minority, athlete, parents’ alma mater, etc).
Since the assets/income of the step parent is usable by the bio non custodial parent, I have no issue with this policy.
Can the student go live with the other bio parent? Would that change the financial aid just off the FAFSA?
Do you mean the step-parent who is the spouse of the remarried custodial parent, or the step-parent who is the spouse of the remarried non-custodial parent?
Each college may have its own policy on how remarried divorced parents and their current spouses are considered.
CSS profile schools (which give the best need based aid) mostly all do consider income & assets from both bio parents and any step parents. There are a few exceptions, but the number is small.
You may need to look for in-state schools with honors programs, or private colleges with merit like many families do.
It’s an approach that says that married couples are a financial unit and that dollars are fungible. You and your spouse together have a certain amount of income and a certain amount of assets. The same for your ex and the ex’s spouse. Pretending that your spouse’s income has nothing to do with how you live and what you can afford isn’t going to fly.
Take the extreme. Imagine you married a wealthy hedge fund guy and you don’t work. You and your child live the lifestyle afforded by his enormous income (the house, the cars, the vacations, etc). $70K a year for school for your kid is pocket change to him. Is your child really the student on whom limited financial aid dollars should be spent since your personal income is zero?
Now, of course, that’s not the actual situation of most stepparent/parent couples and I’m not saying I don’t see why it can be unfair and unreasonable. Of course it can. But married people = financial unit is the operating principle and it’s not the only place it applies.
Are you talking about the custodial parent and spouse? Yes…both incomes and assets are reported on the FAFSA, and Profile. I also have no issue with this as the custodial parent benefits from the step parent income on a day to day basis…right?
@thumper1 Not always. My wife and I maintain separate finances. We have a prenuptial agreement and it states that she isn’t responsible for any of my son’s college expenses. Yet her income and assets still have to be reported on the CSS Profile. No aid.
Not sure what your “not always” applies to. I said both parent and stepparent are included on the fafsa and profile
@thumper1 I was responding “not always” to your statement “the custodial parent benefits from the step parent income on a day to day basis…right?”
The issue is that the remarried parent is NOT singly covering household expenses. Those expenses are shared between the two working spouses.
A single parent’s income would be covering rent, food, utilities, etc.
A remarried parents is sharing those expenses with a new spouse SO even tho stepparent may not be helping with college, they are helping bio-parent with household expenses which “frees up” more of the bio-parent’s money to go towards college.
Along with what I wrote in #13, schools don’t give a rat’s patootie what “prenup agreement” you made. Do you think that if you married a millionaire and signed a prenup then the school would just say, “ok, we’re only going to consider @brokeparent1970 ‘s modest income, and give their student a huge grant”?
Well, what other way could it work? Just use your income? It can’t use your income and your ex’s income because then your info wouldn’t be private. Creating a situation where an NCP must fill out a form would just create greater havoc.
Anyway, for most schools that give great aid, FAFSA won’t be the deciding factor. Those very generous schools use CSS Profile and require the info of all 4 parents exW and new spouse, exH and new spouse.
Are you counting step-children as “students in college” and/or students in household?
it is penalizing them<<<<<<<<<<<to only inexpensive in-state public schools<<<<
What is penalizing them is the decisions made in the adults' divorce and remarriages, not the FA dept. Heck, remarriage means kids get the potential equivalent of 4 parents' incomes, love conquering financials, right? Premarital counselling should focus on the financial implications of marriage. We whinge as adults how kids get such poor financial literacy education at school, but this particular issue comes up over and over again as being unfair.
I suspect quite a few married people face the unfairness of FA when they are married but don't agree on paying for college, that happens plenty. Most kids go to their inexpensive (or expensive!) in state college.
I’m not saying that this would work for all remarried people, but one remarried parent discovered this: when she was forced to be frugal to pay for her child’s college costs because her new H wouldn’t help pay for college, she often had to say, “no” to various “extra” purchases/travel that he wanted. So… he ended up having to pay more for various things that he wanted but would have otherwise been shared costs. For instance, during those college years, when he’d wanted a new big screen TV, he paid for all of it. When he wanted a pricey vacay, his wife couldn’t afford it, so he paid her fare/hotels/food as well. There’s more than one way to skin a cat.