How does Independent vs. Dependent Status Influence Financial Aid?

The government determines your financial aid based on several factors, forefront though is income and assets. If a student has dependent status, the government adds his income and assets with those of his parents. A formula is then applied to determine the student's expected contribution. Other factors, such as having siblings in college, are included in this formula. Even if the student's family is unwilling to help pay for his college education, or won't provide their tax information, their income and assets will still count.

To be considered an independent for the 2008-2009 school year, the student must be able to answer yes to at least one of the following statements:

1. The student was born before Jan. 1, 1985.
2. The student is married as of the day you apply (or you are separated but not divorced)
3. The student has children who receive more than half their support from him.
4. The student has dependents (other than children or spouse) who live with him and who receive more than half their support from him at the time you apply and through June 30, 2008.
5. The student's parents are deceased, and he is (or was until age 18) a ward or dependent of the court.
6. The student is a veteran of the U.S. Armed Forces. (This includes students who attended a U.S. service academy and who were released under a condition other than dishonorable.)

If the student qualifies as an independent, the government will only consider the student's income and assets, and ignore those of the parents. Since the income and assets of the average student are far below that of his or her parents, an independent student will almost always qualify for a greater amount of financial aid than they would as a dependent.