What Income Do I Have To Report?
What Income Do I Have To Report?
Amidst the never-ending questions of the Free Application for Federal Student Aid there are new questions revealed when determining what income needs to be accounted for when calculating the estimated financial contribution of the student and/or their family. In an attempt to answer these spin off questions, there is a publication with complete answers to numerous questions. The following is a brief overview to get you started.
For a student deemed independent, the only income to report is your own. You must fall within the strict guidelines of the independency status put forth by the Federal Education Department. Some of these requirements include being born before January 1, 1984, enrolling in a degree beyond a bachelor’s, being married on the day you apply, having a child that you provide more than half of financial support for, or you have dependents that you provide more than half of the financial support for. If you are an active duty in the United States Military, beyond training, you are considered independent. Veterans of the military also fall into the category of independent.
Dependent students that do not fall into any of the above categories will also have some spin off questions. For example, students that do not actually have contact with their parents will have no way to report their income. In this situation, once a financial administrator receives appropriate documentation, they can decide to change the student’s status to independent. If by chance you are not able to provide documentation, the request can be denied. Be sure to do exactly what is requested of you because the decision is final, and there are no recourses to appeal.
In the case of students with divorced parents, the income needed on the forms is the parent he/she lived with for the majority of the year prior to the date they submit the FAFSA. Students that did not live with a parent for the majority of the year, or were with each parent for the same amount of time, there needs to be a determination of the financial support provided by each to report the one with the greater contribution. If neither one provided financial support, then the most recent time period of parental contribution should be used.
Stepparents income is only considered to be necessary to report if they provided financial support to your parent. This is because their financial contribution to the family, and your parent you depend on, plays a role in your family and its resources available to delegate to your education. No stepparent is ever obligated to proved financial support, but their input to the family as a whole must be represented.
Be sure to keep your financial aid office informed of any changes in your status as they occur. Each year, the financial aid application must be renewed. The renewal application is somewhat shorter than the original, but be sure to check each item included on the original to be sure it is still correct.
Check with the financial aid administrator at your preferred college to get all the information necessary to complete your financial aid award to the best of your ability. Maximize your award by being thorough.