Interesting Divorced Finacial Aid Question

Paying for College
1

<p>My step daughter is in the process of Financial Aid. The parents have split custody and are suppose to split all financial obligations. They have an agreement that they will alternate years claiming her on there taxes. He never remarried and actually lives with his mom and I'm not sure if he even has an income. We grossed $80,000 last year and its our turn to claim her on our taxes. It feels like the dad is trying to talk us into letting him claim her on his taxes and he keeps whispering into her ear that she is not going to get any aid because we are claiming her. Will they look at who claims her? Who is legally obligated? Everybody involved with her? Another twist to the finacial aid is her mom is 100 % Filipino and her dad is 1/2 native american. Can she receive anything for that?</p>

<p>Thanks</p>

2

<p>Who does she actually live with? According to</p>

<p><a href="http://studentaid.ed.gov/students/publications/completing_fafsa/2007_2008/ques5.html%5B/url%5D"&gt;http://studentaid.ed.gov/students/publications/completing_fafsa/2007_2008/ques5.html&lt;/a&gt;&lt;/p>

<p>
[quote]
If your parents are divorced (or separated - see below for more information), answer the questions about the parent you lived with more during the 12 months preceding the date you complete the FAFSA. If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the 12 months preceding the date you complete the FAFSA, or during the most recent year that you actually received support from a parent. If this parent has remarried as of the date you fill out the FAFSA, answer the questions on the remaining sections of the FAFSA about that parent and the person he or she married (your stepparent).

[/quote]
</p>

<p>and

[quote]
In such cases, the parent who provides more than half of the child's support may claim the child in his or her household size. It does not matter which parent claims the child as a dependent for tax purposes.

[/quote]
</p>

3

<p>Who is legally obligated to provide support is one question-- but another is whose finances go on the FAFSA. And that's pretty clear-- if she's been living with you and her mom, her mom's finances and your finances go in the parental portion of the FAFSA.</p>

4

<p>I agree with sblake. For FAFSA purposes, it does not matter who claims the student on their taxes. What DOES matter is where the student lives the majority of the time. SO if the student lived with you and her mom for the majority of 2006 (regardless of whose turn it is to "declare" on the taxes), your finances (mom and stepdad) would be reported on the FAFSA. Now having said that...there is a FAFSA help number, and I'm sure you can call them to get this question answered.</p>

5

<p>Well, her High School had someone in from the local colleges to answer finacial aid questions and how to fill out the FAFSA form. He said if everything is split down the middle, living time, support ect... then the tie breaker is whoever claims her on there taxes that year. He said they actually have a half dozen students that switch there financial aid every year from one parent to the other.</p>

6

<p>There are families who do take college financial aid into consideration when working out divorce settlements. If the child is really split down the middle in terms of living arrangements, it would be a toss up as to who the custodial parent is, especially if everythng is done on a joint custody arrangement. If your stepdaughter is applying for financial aid, whoever is designated the custodial parent for 2006, is going to be the one who has to provide FAFSA financial information. The non custodial parent and spouse does not have to fill out FAFSA. However, any money you and your spouse provided to your stdaughter is also reported in that statement as additional income/child support. If her father is truly at zero income, your stepdaughter will qualify for up to $4000 in Pell grant money, subsidized loans, and possibly other govt grant and loan funds. If she is applying to schools that require only FAFSA for financial aid purposes, it is unlikely she will get full aid, as those schools do not tend to give 100% of need. All FAFSA does is qualify her for the govt money. </p>

<p>If she is applying to schools that require PROFILE or their own forms in addition to FAFSA, you and your spouse will have to fill out one of those forms as well, and though she will still qualify for the govt money since that is determined by FAFSA, her ultimate financial package from such schools will be determined by both sets of incomes combined. </p>

<p>Your support agreement and who claims her on taxes are totally independent of all of this. The colleges do not care nor do the govt agencies who are providing the money that FAFSA determines eligibility for. As long as the noncustodial family accurately reports the dollar amount of support provided by them, it is not an issue with them. </p>

<p>To get the most aid from the government, it behooves your daughter to claim her father as the custodial parent. With you and your spouse down as the custodial parents, she may not get any govt money other than loans. It should not affect who is claiming her as a dependent, unless either parent raises a stink about this. As to splitting the expenses, how the heck is her father going to pay for the years he is responsible for the college payments if he has no income? In situations like this, unless the kid is going to sit out every other year, the one who can pay has to come up with the money. Also when you and your spouse pay for a year, that amount is counted the subsequent year as support or additional income on the FAFSA which could bring up the final income numbers substantially.</p>

7

<p>I want to quickly address the Native American question in the post. I do not know much about this but it may be VERY important for her, both for admissions and for FA.
In order to qualify I <em>think</em> she needs to contact the tribe(s) and be sure she is qualified to be a member, and to officially be listed on the tribal membership rolls. Here is more info.
actual BIA website with all the scholarship info
<a href="http://www.oiep.bia.edu//%5B/url%5D"&gt;http://www.oiep.bia.edu//&lt;/a&gt;&lt;/p>

<p>more info, link and paste from site
<a href="http://www.finaid.org/otheraid/natamind.phtml%5B/url%5D"&gt;http://www.finaid.org/otheraid/natamind.phtml&lt;/a>
Students who are more than 1/4 Indian blood should be eligible for Bureau of Indian Affairs (BIA) scholarships. BIA/OIEP funds may only be awarded to a person who is a member of a federally recognized Native American tribe.
Native American students must apply for a BIA/OIEP Indian Education Grant through their tribe, home agency, or area office of Indian Education. Check with your local BIA office for applications, eligibility and deadlines. The phone number for the California, Arizona, and Nevada BIA office is 1-702-887-3515. </p>

<p>The school's financial aid administrator must send a needs assessment to the director of the Higher Education program of the tribe, so the students have to file the FAFSA. Based on this need analysis, the student may be awarded "Higher Ed" grants. Awards typically range from $500 to $4,000 per year. </p>

<p>BIA/OIEP funds 26 institutions, including two it operates directly, Haskell Indian Nations University in Lawrence, Kansas, and Southwest Indian Polytechnic Institute in Albuquerque, New Mexico. The other 24 institutions are tribally-controlled community colleges represented by the American Indian Higher Education Consortium of Alexandria, Virginia. </p>

<p>BIA/OIEP also provides funding to students through a contract with the American Indian Graduate Center in Albuquerque. All fields of study are given consideration with priority to Business, Engineering, Health, Law and Natural Resources. </p>

<p>For general information about the Indian Higher Education Grants for undergraduate and graduate students, call 1-202-208-4871, 1-505-881-4584, or 1-202-208-7163, fax 1-202-208-6334, or write to US Bureau of Indian Affairs, Office of Education, 1849 C Street, NW, Washington, DC 20240-0001. The phone number for the BIA Office of Public Affairs is 1-202-219-3711 and their fax number is 1-202-501-1516. The Bureau of Indian Affairs can also be reached at 1-800-332-9186.</p>