Does Getting Married Make College Cheaper?

Getting married can influence the financial aspects of attending college. Marital status impacts eligibility for federal student aid and can also play a role in qualifying for certain education-related tax benefits. Understanding these connections helps individuals navigate the complexities of college financing.

Marriage and Federal Student Aid Eligibility

A student’s marital status significantly affects their eligibility for federal student aid by determining their dependency status for the Free Application for Federal Student Aid (FAFSA). Being married automatically qualifies a student as an “independent student,” regardless of age. This means parental financial information is no longer considered; instead, only the student’s and their spouse’s financial data are used.

The Student Aid Index (SAI), which replaced the Expected Family Contribution (EFC), is calculated differently for independent students. For married students, the SAI incorporates the combined income and assets of both the student and their spouse. This includes adjusted gross income, untaxed income, and assets like savings, checking accounts, and investments.

This shift to independent status can lead to a lower SAI if the student and their spouse have limited income and assets. A lower SAI translates to increased eligibility for need-based federal financial aid programs, such as Pell Grants and subsidized federal student loans. Conversely, if the spouse has high income or substantial assets, marriage could decrease aid eligibility.

The FAFSA uses marital status as of the day the form is filed. Students planning to marry should consider the timing of their FAFSA submission relative to their wedding date. Financial aid offices can update a student’s marital status after the FAFSA has been filed if it impacts their financial situation.

Completing the FAFSA as a Married Applicant

Married applicants begin by accessing the Free Application for Federal Student Aid (FAFSA) form online through StudentAid.gov. Each applicant and their spouse will need a Federal Student Aid (FSA) ID. This FSA ID serves as a unique username and password, acting as a legal signature for federal student aid documents.

To complete the FAFSA, married applicants need to gather documents and information. This includes their Social Security number, federal income tax returns (or those of their spouse), bank statements for cash, savings, and checking accounts, and records of investments. The FAFSA asks for income information from the “prior-prior year.”

When completing the FAFSA, applicants must report their marital status as “married.” The form prompts for the spouse’s identifying information, including full name, Social Security number, and date of birth, which must match official records. If the tax filing status for the prior-prior year does not reflect the current marital status, the spouse’s income and asset information must still be reported.

After entering financial and personal details, the FAFSA can be electronically signed and submitted using the FSA IDs of both the student and the spouse. After submission, applicants receive a Student Aid Report (SAR), which summarizes the information and includes the calculated Student Aid Index (SAI). Reviewing the SAR for accuracy is crucial.

Education Tax Benefits and Marital Status

Marital status and tax filing status influence eligibility for federal education tax benefits. Benefits include the American Opportunity Tax Credit (AOTC), the Lifetime Learning Credit (LLC), and the student loan interest deduction. More details are in IRS Publication 970.

The choice of tax filing status, especially “Married Filing Jointly” versus “Married Filing Separately,” impacts claiming these benefits. The American Opportunity Tax Credit offers a maximum annual credit of $2,500 per eligible student for the first four years of higher education. For married couples filing jointly, the full credit is available if their modified adjusted gross income (MAGI) is $160,000 or less, with a reduced credit up to $180,000. Those filing “Married Filing Separately” are ineligible for the AOTC.

The Lifetime Learning Credit provides up to $2,000 per tax return for qualified education expenses and has income limitations that vary by filing status. For married couples filing jointly, the full credit is available for a MAGI up to $160,000, phasing out at $180,000. Individuals filing “Married Filing Separately” cannot claim the Lifetime Learning Credit.

The student loan interest deduction allows eligible taxpayers to deduct up to $2,500 in interest paid on qualified student loans. Eligibility for this deduction is tied to filing status and income, with a maximum deduction phased out for married filing jointly filers with MAGI above $170,000. Filing as “Married Filing Separately” disqualifies individuals from claiming this deduction. While these tax benefits can reduce overall education expenses, federal student aid eligibility determined by FAFSA typically has a greater financial impact for many students.