How are SS benefits for a deceased parent factored into financial aid determinations? I believe they cease after high school so would only be applicable for freshman (and then I guess half of sophomore year) since FA is calculated on prior year’s taxes, correct?
Have a friend who lost her husband in January of this year. Has a dd who is a junior in high school. Ds coming along behind. Will be receiving SS benefits until high school graduation.
Presumably you mean SS benefits for the survivor of a deceased parent. The taxability of SS benefits depends on the other income of the recipient. Generally young folks don’t have enough other income for the benefits to be taxable. So for finaid the amount wouldn’t be part of AGI. For FAFSA SS isn’t reportable as untaxed income either. I think profile schools and schools with their own finaid forms would treat it the same as FAFSA. Schools know that the payments end at HS graduation and won’t be available for paying for college and that’s what the forms are trying to determine. Amounts saved in the student’s name would be student assets for financial aid.