When Does FAFSA Need Parent Information?
Get clear guidance on FAFSA. Learn the exact criteria and definitions that dictate if parental financial information is required for your student aid.
The Free Application for Federal Student Aid, commonly known as FAFSA, serves as a gateway to financial assistance for higher education. This document helps determine eligibility for a wide array of grants, scholarships, and loans, significantly easing the financial burden of college. It unlocks access to federal, state, and institutional financial aid packages.
When Parent Information is Necessary
Parent information is required on the FAFSA when a student is classified as “dependent” for financial aid purposes. The FAFSA defines dependency status based on specific criteria, not solely on whether a student receives parental support. Students are considered dependent if they are under 24 years old, unmarried, not pursuing a graduate degree, and do not meet other independent student criteria.
For these dependent students, the financial details of their parents are factored into the calculation that determines the student’s Student Aid Index (SAI). The SAI is a number used by schools to calculate how much financial aid a student is eligible to receive. Providing parent information is a necessary step for dependent students to complete their FAFSA and access federal student aid.
Who is Considered a Parent
For FAFSA purposes, the definition of “parent” is specific and may differ from common understanding. A parent refers to a biological or adoptive parent. If a dependent student’s biological or adoptive parents are married to each other, or are not married but live together, both parents’ information must be included.
If a biological or adoptive parent is remarried, the stepparent’s financial information must also be included on the FAFSA, provided they live in the same household as the student and the biological/adoptive parent. Other relatives like grandparents, foster parents, or legal guardians are not considered parents for FAFSA purposes, unless they have legally adopted the student.
Scenarios Without Parent Information
A student is considered independent for FAFSA purposes, not requiring parental information, if they meet specific criteria. For example, a student is independent if they are 24 years old or older by December 31 of the award year. Marriage also confers independent status, regardless of age.
Other conditions for independent status include being a graduate or professional student, or being an active duty member or veteran of the U.S. Armed Forces. Students who are orphans, wards of the court, or were in foster care at any time after turning age 13 are also considered independent. Individuals who are emancipated minors or are in a legal guardianship as determined by a court are independent. Students who are determined to be homeless or at risk of homelessness by an authorized entity, such as a high school homeless liaison or a director of an emergency shelter, also qualify as independent.
Required Parent Financial Details
When parent information is necessary for the FAFSA, specific financial and tax details must be reported. This includes adjusted gross income (AGI) from their federal income tax return, which reflects their total income less certain deductions. The amount of federal income tax paid is also required.
Beyond standard taxable income, parents must report untaxed income, such as child support received, tax-exempt interest income, and any untaxed portions of IRA distributions or pensions. Information regarding assets is also collected, including current balances in cash, savings, and checking accounts. Investments, such as stocks, bonds, mutual funds, and real estate (excluding the family’s primary residence), are also considered assets. Tax returns and other financial statements are the primary sources for gathering this required information.