<p>I have a question:</p>
<p>So I file my FAFSA and CSS Profile. This year, my parents are planning to buy a house...I was wondering how that will effect my financial aid....also...if I were to file independently (not dependent on my parents) how will my family's assent and income be dealt with???</p>
<p>You cannot file FAFSA as an independent unless you are 24years old (or married/have a dependent of your own/are a veteran/are studying for a masters or doctorate and a few other things). Filing as independent is not something you can 'choose' to do. You have to answer a series of questions - starting with your age - and unless you can answer yes to one of them you are a dependent for FAFSA. And not being claimed on your parents tax return does **not **make you independent for financial aid.</p>
<p>The primary home is not considered an asset by FAFSA but may be by profile. How buying a home will affect your financial aid depends on various factors. For instance if your parents had cash in the bank that they have used as a deposit on the house that Cash would have been considered an asset by FAFSA while the same money invested in a (primary) home will not be. So in that circumstance it may give you better aid.</p>
<p>For css/profile schools it is the equity in the home that is used. So if a home is worth $300k but has a mortgage against it of $250k then the equity is only $50k. How the schools use this equity varies by school.</p>
<p>How old are you? If you are a high school senior who has parents (not a foster kid), it is pretty much impossible for you to file as an independent student. FAFSA does not look at home equity, but PROFILE does. The money they have saved to buy a house is currently listed as an asset that would be considered available for them to use for you for college. If they use it as a downpayment for a house this year, it will no longer be an asset for FAFSA purposes next year ... but the amount that is put into the house will be part of home equity assets for next year's PROFILE.</p>
<p>Aren't you the one with all the scholarships? Do you even have anything to worry about here?</p>
<p>The house purchase this year won't have any impact on your 08/09 aid, since you're already submitted FAFSA/Profile based on '07 income, and a snapshot of assets at the time you filed.</p>
<p>When you file next year, though, it could have a significant impact. Your parents likely shifted assets from the reportable (savings, checking, stocks) column into the non-reportable column (home equity). Even for profile, which includes home equity, the equity is likely low, and will likely be capped by most colleges.</p>
<p>You don't have a choice to file as a dependent or independent-- either you are, or you are not. Generally, you're dependent until you're 24, married, or have a child you're supporting (and a few other circumstances). Don't confuse FinAid dependent status with tax form dependents-- two very different things.</p>
<p>Well..I was thinking about filing as independent when I graduate from college...trying to get a master's degree...is that independent??? my parents are in no rush getting a house....but I was just wondering how it will be influence...if it will change my grant money substantially ..they might buy the house under my brother's name (he is independent 25 years old) </p>
<p>oh btw...yeah I got those scholarships...but I don't want to reject them and then find out that my school is giving me less grant money...</p>
<p>well my parents are not in a rush to buy a house....this is what they are planning to do: </p>
<p>if it influence my grant money substantially, they might list it under my brother's name (he is independent and 25 years old) .....then when I graduate from college and attend graduate school...they will transfer the house to their name...
I guess my question is Can i file independently when I graduate from college and going to graduate school???</p>
<p>also...yeah I am the one with the scholarship...I just don't want to reject the scholarships and later find out that my grant money is lessen....</p>
<p>When you are getting your masters degree you **are **considered independent for financial aid purposes. Again not a choice. Then your aid is based on your own income and assets and your parents are not involved so their house should have no impact (except some medical & law schools may still ask for parent info). But federal aid for a masters does not involve grants (for instance the Pell is just for undergrad) - just loans.</p>
<p>Realistically i would not expect the house to have much of an impact on your undergrad financial aid. Unless they buy a house whose value increases dramatically in the first 2-3 years of ownership it is not really going to change their total assets very much (because the mortgage reduces the reportable asset value). And as I said before - if your parents have money saved for a deposit that would have been reported as an asset this year and once it is invested in a house it will not be considered an asset (by FAFSA) so it may actually reduce your EFC.</p>
<p>You may apply for aid as an independent student for your masters. You will not need to use your parent financial info in that case.</p>
<p>I would suggest going to the library & borrowing the book "How to Pay for College Without Going Broke." The author addresses what parents can do with their money in order to maximize their eligibility for aid.</p>
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<blockquote> <p>I was thinking about filing as independent when I graduate from college...trying to get a master's degree...is that independent>></p> </blockquote>
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<p>When you are a grad student you ARE considered independent for financial aid purposes and will not use your parents income and assets at all (unless you are going to law school or medical school...some still require parent info). HOWEVER...please take note that grad school funding is VERY different from undergrad. There are not schools that "meet full need" in the same sense as for undergrads. There is no federal grant money for grad students. In other words, your EFC will likely be zero or very close to it, but the colleges will not pony up the money based on your FAFSA. In grad school, most financial aid is awarded in the form of fellowships, scholarships, and assistantships...oh and loans. The aid (other than loans) is based your merit and skill for the program in which you are enrolling, not on your FAFSA EFC.</p>
<p>Some people swear that you can't be independent unless your 24.</p>
<p>I go to KSU-I contacted my admissions rep about my fin situation which is that I have no relationship with my mother and she doesnt in any way support me. She referred me to the vice president of admissions and fin assistance at KSU and he just asked for a letter from a professional explaining this. I turned it in and I'm independent right now. You cant lie and just get an independent status because you want it.</p>
<p>"On a case-by-case basis, a financial aid administrator (FAA) may make an otherwise dependent student independent if he or she can document in the student's file that the student's individual circumstances warrant the decision. The reason must relate to that individual student and not to an entire class of students. The FAA's decision is final and cannot be appealed to the U.S. Department of Education."</p>
<p>Completing</a> the FAFSA 08-09/The Application Questions(48-55)</p>
<p>Right. It's very difficult to be considered independent if you don't meet the criteria, but it can be done. Generally speaking, it's not likely to happen - certainly not for folks like the OP. However, it is important to know that it's possible - DLP 108 and others who have unique situations do have an avenue to pursue.</p>
<p>The other thing to note is that some schools won't let you change your status from dependent to independent. You can be independent for FAFSA but still have your school consider your parents income and consider you dependent when it comes to their grant $. Also, I have heard that medical schools ask about your parents income even though you may be over 24.</p>
<p>okay wait just one sec......i just want to get something clear up....its not like im cheating the system...i am just curious when I CAN be considered....I hope you guys aren't taking this the wrong way....i didn't know if buying a house will influence it or not.....</p>
<p>Your parents buying a house has no impact at all on independent vs dependent financial aid filing. NONE.</p>
<p>From your post #5 "I was thinking about filing as independent when I graduate from college...trying to get a master's degree...is that independent?"</p>
<p>As stated above...when you are working on your masters degree you WILL be an independent. One of the criteria is that you have earned your bachelor's degree. So...if that is your question, the answer is yes...you usually are independent for finaid purposes as a grad student. BUT you also need to understand that financial aid for grad students is VERY different than for undergrad. There are no Pell Grants or the like. Most grad school financial aid comes in the form of assistantships, fellowships and scholarships...which are base on your merit for the program in which you are accepted. Other than that...it's loans.</p>