College Financing

[Ref]

SD is graduating this year. She will probably be going to college next year.

Does anyone know what, if any information DH will have to show when SD applies for College loans, Financial aid?

SD lives with BM 1400 miles away in Fla.

Ref

[Davy]

The key words in your post is "SD "applies".  One of my sons had a small loan and of course he completed the forms and filed.  He may have asked my income for the previous year but that was extent of it as I remember.

The thing is ...SD will soon be an adult and should be treated as such.
(Whoops I just remembered some states still consider a child for the puposes of financial rewarding the parent with custody).

Parents have no real input to where they live, who they live with, if they go to class, the grades they receive, etc.  The best DH could do right now if at all possible is to rationally guide her choices (ie trade school, 2yr , 4yr institutions).

The goal, upon graduating, is to not owe 50k in college loans and while driving to work in a 40k vehicle making 25k per year.  

[Ref]

From what I understand fiancial aid is partially based on parent's income.

Am I wrong? I asked a buddy and they said they thought it was based on custodial parent's income and CS.

Ref

[Davy]

This is what I remember.  Student loans are handed out like candy.  I really don't know about the inclusion of the parent's income or CS ... of course my kids didn't receive CS because they lived with father.  Title 19 took away his scholarship.

I did step in and paid the student loan (2K) but I was under absolutely no obligation to do so.  It is the student's loan and they are responsible for paying it.  NOT THE PARENT.  They can get loans year after year and repayment does not start until they've  been gone from the university for 6 mos.  Those parents that could pay for college 10 times over were advised to encourage the student get the no interest student loans..for the 4 -5 years the student is in college.

Some parents, especially with more than one student in college could drastically cut expenses by buying a small home (renting rooms) and then selling usually for at a profit when the students leave the university.

Credit cards companies hand out credit cards to students with no income in the student union.  That's the biggest problem. for the student.

[MixedBag]

he is not the primary or residential parent.

Pell grant paperwork will ask for the two residential parents' income.

I should know -- A few years ago, OSD was the first to graduate and attend college.  The FAFSA forms asked for dad and step-mom's income and assets.  Yep, got a little po'd because I had assets set aside for my 3 bio kids to go to college -- and now since we married, those assets were considered available for OSD's support.  Shocker!

My mistake was not putting those assets in the name of my three kids so that I couldn't call them mine.  They were there for my kids only in my eyes -- but legally in my name.

I was also angry because I had a career and had good income.  OSD's mother didn't -- so the true picture of using the bio-parents' income wasn't used, it was dad's income and MY income.

Yes, legally -- as a step-parent, whether or not my step-daughter received and qualified for financial aid included MY step-mom's income.

Now the flip side is true -- I'm divorced and for Pell Grant applications for the 4th child left in college (MD), her dad's income does not come into play when applying for a Pell Grant and Financial Aid......which is a good thing because he "has money" and his income would disqualify her for financial aid.

Now all that being said -- the child's assets are considered.  something like 30% of the child's assets vs. 10% of the parental assets.  AND the maximum available under a pell grant is about $4500.  Don't remember which magazine I read all this in, but it was an eye opener.

Good luck and feel free to ask away!

Actually, if you want to see the application, fill one out for yourself and read the rules but don't click "send" at the end....

http://www.fafsa.ed.gov/

[Ref]

Do you think if we filed for our taxes seperately, this would help?

You are the best Mixed!!!!!!

Ref

[Kitty C.]

When we had to fill out FAFSA for DS, I had to include DH's income, tho he's the step-dad.  DS's dad died 6 years ago.  And because of this, DS wasn't eligible for any grants, plus they nailed him with a bigger interest rate because of our combined debt level, regardless of the fact that DS had NO assets whatsoever.  And even tho they knew DS had a deceased parent, it made no difference in the application.

Sallie Mae is getting VERY picky about handing out loans...from what I've dealt with so far, they are holding on with extremely tight reins.  I HAD to co-sign for DS or there was no way he would have gotten the loan.  So now I'm paying on a $25,000 student loan for a wilderness therapy program from 2 years ago and on the hook for another $40,000 for a 9 month tech course.  No wonder my credit is crappy!

I'm done whining now...........;(

[lucky]

When I worked for MNSCU, the FAFSA rules were that whoever had custody was responsible for completing the FAFSA and that income was HOUSEHOLD income, not just the parent's income.

Unfortunately, in my ysd's case, that's going to screw her next year as she's living with mom but dh retains custody.  Not that mom would ever bother with the FAFSA anyway since she won't benefit, but that's another story.


[em]Lucky

Lead your life so you wouldn't be ashamed to sell the family parrot to the town gossip.
- Will Rogers[em]

[lilywhite]

That's not right.

The fafsa site has a link to this document which clearly says that the parent whose income you use is the one with whom you lived more during the year.

studentaid.ed.gov/students/attachments/siteresources/67.pdf

[MixedBag]

OD left mom in Oct, Dad got custody in Dec, she turned 18 5 days later (or close to that), but she was still a senior in high school.

Dad could not claim her on taxes for that year -- and that was the year the FAFSA was asking for.

We had to use OUR income (yep mine as step-mom) because she was living with us MORE than living with Mom.

For the upcoming college year, WE were her support, not mom and that was their logic.