<p>Our 19 year old son's girlfriend lives out of state. He is spending the summer there working for her father. We have now found that he is trying to establish residency in that state in order to apply to a college there. He is eligible for the full Pell Grant this year 2009-10. If he establishes residency in that state does that mean he becomes independent? Or, would he still be claimed as a dependent on our tax returns (2009). We do not want him to lose his eligibility for the Pell Grant. His taxable income for this year (so far - work study) is approx. $700 - he is not paying any taxes over the summer. We are trying to introduce a little reality into the "Happy Teenage Bubble"</p>
<p>It does not matter how he is claimed on tax returns. Unless he can answer ‘yes’ to one of the dependency questions on FAFSA (none of which relate to dependency for tax purposes) he is a dependent for FAFSA.</p>
<p>It is unlikely he can establish residency for tuition purposes. Nearly all states base a students residency status on where the parents live. If you google instate tuition for the state in question you can probably find the relevant information.</p>
<p>A few questions to clarify: is he currently in college in your state; is he trying to transfer and hoping to get residency status in another state? The state he lives in should not effect his pell grant eligibility as it is a federal program. He does need to know that it is nearly impossible to be declared independent for financial aid purposes at age 19 and he will likely be viewed as dependent for those purposes. It is also just as difficult to establish his residency in another state for in state tuition purposes. He needs to carefully read the residency requirements of the college. Most states have few loopholes.</p>