<p>When it comes to FAFSA, which would provide a better outcome... use mom or dad as the primary parent (all living in Ohio):</p>
<p>Mom is the divorced primary custodian and made (guessing) $55,000 last year, collected close to $8,000 in child support from dad last year, is continuing her education with minor classes here & there, has three children (and claims them for tax purposes) including the oldest that is heading to college, and possibly has her own loans from her recent college degree (several years ago, she got her degree).</p>
<p>Dad made about $75,000 last year, expecting $65,000 this year, pays about $13,000 in child support per year, looking to apply for his own college experience possibly/hopefully this summer, does not have his children living with him full-time, claimed college-bound and youngest daughters on 2010 taxes.</p>
<p>Side note: any suggestions to maximize my daughter's aid? I've included all the info I think matters, but let me know if there's anything more that matters. (Being a home owner? Possibility of foreclosure? Etc.)</p>
<p>Thanks all!</p>
<p>You don’t really have an option to pick mom vs. dad. The custodial parent is generally the one that the student lived with during the preceeding year. If the custodial parent has remarried, the step parent income would be considered as well. </p>
<p>Per FAFSA - “The custodial parent for federal student aid purposes is the parent with whom you lived the most during the past 12 months. (The twelve month period is the twelve month period ending on the FAFSA application date, not the previous calendar year.) Note that this is not necessarily the same as the parent who has legal custody. If you did not live with one parent more than the other, the parent who provided you with the most financial support during the past twelve months should fill out the FAFSA.”</p>
<p>It’s not like the the dependent exemption on taxes where parents can agree as who gets to claim the child when you are dealing with FAFSA. The rules very clearly state that the parent with whom the student has been living the most with gets the custodial parent designation, and if the student spends equal time with each parent, then the one with the most income and assets gets the designation. Clearly in this situation the mom who has the kids living with her is the custodial parent, and fortunately that is the favored choice financially in terms of federal aid money.</p>
<p>The situation with college financial aid is that there is FAFSA which is for government funds which your student gets automatically based on the Expected Family Contribution (EFC) as long as the college costs justify it, and there are the inidvidual schools’ (usually privates) that have additional requirements, usually including both parents’ financial statements. FAFSA does not include non custodial parent’s financials other than the chlld support given to the custodial parent. Nor does it include primary home equity values. Most private schools that use PROFILE want that additional information. </p>
<p>What suggestions to maximize aid? Stop giving child support to the custodial parent and have the monies put in a special account to be held until college issues are resolved, is one way to do it. Or stop child support and lend the money instead with loan papers drawn and then forgive the loan upon college years ending. That might help with the EFC. Use the online estimators to see if it makes any difference. It might not. If it doesn’t make your student PELL eligible, then it is likely not to matter a bit since the schools that give out the most aid will want both parents’ assets.</p>
<p>No, they don’t care about foreclosure possibilities except in PROFILE most schools want the value of the house, in foreclosure or not and that is counted as an asset if there is any residual value. You can make sure you fill out the forms on a day when your bank accounts are not loaded. Pay all of your bills so that your paycheck and any other money isn’t sitting there. Depelete whatever home equity you can if it works with your other financial issues. College costs are not in a vacuum from other financial situations.</p>
<p>If your child lives mostly with mom, mom’s info is used. </p>
<p>It sounds like you are the dad…are you? </p>
<p>Debt and foreclosures don’t matter. </p>
<p>Doesn’t matter who claims who on taxes.</p>
<p>That said…please realize that FAFSA EFC is not some rainbow to a pot of gold. There is little federal aid…not enough to pay for college unless commuting to a local low cost public. </p>
<p>Colleges are NOT obligated to do ANYTHING with that number except to see if you qualify for any federal aid. MOST colleges do NOT meet need or give much aid.</p>
<p>First, you need to determine how much you and your ex will pay each year for college.</p>
<p>Then, use some online FA calculators to determine what your likely EFC is. If it’s over about 5k (which it probably will be) you won’t get any federal grants.</p>
<p>Be sure to have a couple of financial safety schools identified. These are schools that your D will like and you know for sure that all costs are covered because of ASSURED grants, ASSURED merit scholarships, small federal loans, and/or family funds.</p>
<p>If your D has strong stats,there are probably some schools that would give her a good merit scholarship…so consider those as well if needed. </p>
<p>That said…if your child applies to a CSS Profile school, then both parents’ incomes and equity may come into play.</p>
<p>???
Your Ex collects $8k in child support? But, then you later say that you pay $13k in child support? Is that a typo?</p>
<p>Thanks all for your replies! I’m new to the kid going to college routine and thought FAFSA could makes tens of thousands of dollars difference if we did the numbers right, but sounds like mom has to be used and the difference wouldn’t have been that great. (I didn’t go to college, so I’m not sure what to expect.)</p>
<p>And yes, I’m the proud dad! :)</p>
<p>NJ Paladin - Thanks for the quote; I can share that with mom so she knows it’s the “rules”.</p>
<p>mom2collegekids - While married, her and I had two daughters. We divorced and years later, each had another daughter with someone else, hence the difference in child support figures. Ha, and yes, lots of beautiful girls!</p>
<p>kcs…</p>
<p>Do you know what your D’s stats are?</p>
<p>If they are strong enough, then I suggest that she apply to… </p>
<p>1) a few schools that are known to give good aid…(but they might require all parents/step-parents’ income info)</p>
<p>2) a few schools that are known to give large merit scholarships. (some give assured scholarships for stats)</p>
<p>3) a couple of schools that you know for sure that all costs are covered.</p>
<p>Have you and your ex determined how much each of you will contribute towards your D’s college costs? If not, you need to.</p>
<p>Mom has already convinced daughter into going to local community college, which I understand is a good choice and inexpensive. And no, mom and I don’t communicate easily and especially when it comes to money (even if it’s for our daughter). :(</p>