FAFSA: Independent Student and Payments on Behalf of

<p>I turn 24 in July so I will qualify as an independent student and likely get benefits for the first time. My parents have been paying for my tuition for the last year with a Tuition Pay loan from Sallie Mae but will be unable to help me pay for my final year because my dad will be laid off in April.</p>

<p>Do I count the payments made by my parents to pay for tuition and on-campus room/board as "payments made on behalf of" or anywhere else?</p>

<p>I don’t think so. Someone asked this before and I seem to recall one of the FA officers saying that as they were a dependent student when the parents made those payments they didn’t have to report it. I would go with not reporting it unless told otherwise.</p>

<p>Thats what I thought. Also, my parents are asking if they can still claim me as a dependent on their income tax return and still be an independent student for FAFSA.</p>

<p>As far as FAFSA is concerned it is fine.</p>

<p>Because you were a dependent student when your parents paid for school, and because the federal regulations expect them to do so, you would not report those payments. If they paid bills in your name (credit card, insurance, lease, etc), those payments are considered other untaxed income … only if the bills were in your name, though.</p>