How Does Being Married Affect FAFSA?

The Free Application for Federal Student Aid (FAFSA) is a form used by prospective and current college students to apply for federal financial aid. This aid can include grants, scholarships, work-study programs, and federal student loans. Understanding how marital status influences the FAFSA is important, as it directly impacts the financial information required and, consequently, the amount of aid a student may receive.

Determining Marital Status for FAFSA

The FAFSA requires applicants to report their marital status as of the day they complete the form. This “snapshot” date dictates whose financial information must be included. If an applicant is married on the submission day, their spouse’s financial details are required, even if single for most of the prior tax year.

This applies to both students and their parents (for dependent students). Common-law marriages are recognized for FAFSA if they meet state criteria. Civil unions and domestic partnerships are not considered legal marriages for FAFSA; individuals in these relationships should report as single unless they meet common-law marriage criteria.

If a student’s unmarried parents live together, both parents’ information must be reported as if they were married for FAFSA purposes. This applies regardless of whether the parents are biological or adoptive. The FAFSA prioritizes the current living and marital situation over past tax filing statuses.

Reporting Combined Financial Information

When married, the FAFSA requires combined financial information of both spouses. This includes income from tax returns, untaxed income, and assets. The FAFSA uses “prior-prior year” income, meaning the application for a specific academic year uses income from two years prior (e.g., 2025-2026 FAFSA uses 2023 tax information).

Applicants generally consent for the IRS to directly transfer tax information to the FAFSA via the FUTURE Act Direct Data Exchange (FA-DDX). If a marital status change occurred since the prior-prior tax year (e.g., marrying a different person or filing taxes jointly but now being separated), income and tax data may need manual entry. This ensures only relevant financial information for the current marital situation is considered.

Untaxed income, such as child support, alimony, Social Security, and veteran’s benefits, must be reported. While some untaxed income (e.g., welfare payments or food stamps) is excluded, others (e.g., pre-tax contributions to retirement accounts like 401(k)s and IRAs) are added back into the income calculation. Assets, including cash, savings, checking accounts, and net worth of investments and businesses, are combined and reported. Primary residences and qualified retirement accounts like 401(k)s and IRAs are generally not counted as assets.

Impact on Student Aid Index and Eligibility

Combined financial information from married applicants directly influences the Student Aid Index (SAI) calculation. The SAI is an index colleges use to determine a student’s eligibility for federal and institutional financial aid. A lower SAI generally indicates a higher financial need and increases the likelihood of qualifying for need-based aid, such as the Pell Grant.

Combining both spouses’ incomes and assets typically results in a higher overall financial picture for the household. This higher combined figure can lead to a higher SAI, which reduces the amount of need-based federal student aid a student may receive. The FAFSA formula treats married applicants’ or parents’ finances as a single unit, reflecting the expectation that both spouses contribute to the household’s financial capacity.

The SAI calculation considers various factors, including income, assets, federal tax liability, and an income protection allowance based on family size. Although parent assets are assessed at a lower rate (5.64%) than student assets (20%), the cumulative effect of combined finances can still significantly impact the SAI. Therefore, marriage often means additional financial resources are considered available for educational costs.

Addressing Specific Marital Scenarios

Certain marital situations require specific attention. If parents are separated but not legally divorced and live in separate households, only the financial information of the parent providing more financial support to the student needs to be reported. If support is split equally, the parent with the greater income should complete the FAFSA. However, if separated parents still live in the same household, both parents’ information must be included.

For dependent students with divorced parents where one parent has remarried, the stepparent’s income and assets must be included on the FAFSA if they are married as of the FAFSA filing date. This is a federal requirement, and prenuptial agreements do not exempt the stepparent’s financial information from being reported. The stepparent’s income from the prior-prior year is required even if the marriage occurred after that tax year.

Changes in marital status after FAFSA submission may warrant an update, though the FAFSA is generally a snapshot of status on the filing date. Financial aid administrators can make adjustments through a “professional judgment” process if a significant change in financial circumstances, such as marital status, affects a family’s ability to pay for college. This process allows for a case-by-case review and may require documentation like marriage certificates or divorce decrees.