<p>I am the divorced mother of a high school senior. I am the custodial parent and my financial status is MUCH lower than my ex-spouse's. I just read something that suggested that only the custodial parent counts in the financial aid process. Anyone know if this is true or how I would find out? I am just beginning to look at the financial aid issue -- belatedly, I know.</p>
<p>Also, there is a ugma account for my daughter which is in her and her father's name. Does this figure into the answer for my first question?</p>
<p>Non custodial parent income- depends on college.</p>
<p>UGMA counts as your daughter's asset; regardless of who is custodian...UGMA I think she actually gets control over at 18 as opposed to a UTMA which is 21, but either way still her asset.</p>
<p>Depends if she is applying to a FAFSA only school or one that uses profile. FAFSA requires only the financial information of the custodial parent (and spouse if there is one). Profile requires the financial info of both parents (and their spouses if applicable).</p>
<p>If the UGMA is worth a relatively high amount, you might want to have your ex transfer the funds into a student-owned 529 (that's a UGMA/529 account in your daughter's name). That way the money is counted between 2.6 and 5.6% rather than at 20% in the FAFSA calculation. However, you'd have to convert all stock & mutual funds to cash, which might mean realizing significant capital gains. There's not a one-size-fits all answer to this, but it's something to consider.</p>
<p>It is true that with FAFSA schools, only your income is reported. But any child support or other money he pays for her is also reported. For most Profile and schools that use their own forms, both parents are considered responsible for the college finances.</p>
<p>What if the non-custodial parent has not been in contact and has not been paying child support for 10+ years? Some colleges told me that his income won't be considered. Does that hold for all colleges?</p>