Divorced Parents Can Change the College Financial Aid Process… Here’s How!

If your family is still navigating college planning as it relates to financial aid, having divorced parents as a student will add another complex layer that will make you even more confused about how it works. If you’re a parent to an upcoming or current college student who goes to school here in Buffalo and Western New York or another school out of state, you are probably wondering whose income is going to count. If a parent lives in a separate house or if the step-parent's finances matter, these are still circumstances we want to educate people about.

Good news! We have the resources and information you’re looking for and need when the time comes to handle your financial aid so that you can avoid delays and can plan for whatever expenses you plan to pay for. In this blog, we will explain how the college financial aid process works for students whose parents are divorced.

Can Having Divorced Parents Change How FAFSA Works?

If you’re reading this blog and have never heard of FAFSA, it’s the free application for federal student aid that you can sign up for if eligible, according to the rules stated on the official Federal Student Aid website. This application includes forms of financial aid such as Pell Grants, student loans, or work-study opportunities that we’ve discussed in prior blogs we recommend you read! 

For students who are with divorced parents, FAFSA requires financial information that is from the parent who is providing more support for the previous 12 months. Now, depending on the circumstances, if neither parent was providing the student with more support than the other, whichever one has a better income and assets is going to be responsible for helping with the financial info. 

Very important detail from that: This does not mean that if you live with the parent whose house you’re in most often, they are the one who completes FAFSA with you. Everyone in the family should review the guidelines of FAFSA before signing an application!

How Remarriage, Having Stepparents, and Child Support Affects Financial Aid

There are a lot of financial arrangements that come from a divorce taking place. Arrangements revolve around child support and which parent ultimately becomes the primary financial supporter, or when FAFSA asks you about that support and other assets that come with it.

If something like remarrying happens between one of your parents and a stepfather or stepmother, the stepparent’s financial info will potentially still be required (tax filing status and other circumstances to be considered). If a stepparent has now legally been brought in to adopt a kid, that parent is treated as the primary parent for FAFSA when you make your application.

Depending on the college you attend, locally or in another state, the rules might be different for everyone. A certain university may require that you fill out a CSS Profile, which is another financial application used to award non-federal institutional financial aid, such as university grants and internal scholarships. That application and the college will require both parents or adoptive stepparents to include their information.

How You Can Plan For This Change Throughout the School Year

Questions around this topic will be something you explore throughout the school year, throughout each new semester. You’ll experience these conversations around financial aid during the fall, winter, spring, and maybe even the summer if you continue to take classes during those months. Be sure to review your eligibility for the Tuition Assistance Program (TAP), which we have a part of our website ready to help you with. This will help students and families who are attending a college here in New York State.

Most importantly, don’t forget to contact your financial aid office if an offer that you receive for finances does not meet what your family is looking for. Certain situations, like job loss or divorce, can bring forward a lot of hardship that families want to avoid as best as possible. FAFSA will require you to make sure that all information is carefully worded and accurate regarding your circumstances.

Even when you report that you are from a divorced family, this does not mean that you’re going to be guaranteed an additional amount of financial aid. This will at least give the college you want to attend more of an opportunity to consider your eligibility that another application may not want to consider. Take a look at our FAFSA page, and if you have any questions about this process, give us a call or reach out through our contact form!

College Financial Planning FAQ

Which parent's income counts for FAFSA if my parents are divorced?

If you have parents who are divorced, then FAFSA will allow you to use the parent who provided the most support over the prior 12 months. If both parents provided equal support, the parent with the higher income must provide their financial information. If remarried, the spouse’s information is also going to be required.