Today I’m featuring a guest post by author, consultant, and speaker Jeannie Burlowski, whose book LAUNCH: How to Get Your Kids Through College Debt Free and Into Jobs They Love Afterward is available for a very limited time through kickstarter.com. You can see Jeannie’s inspiring 3-minute video (and get an invitation to one of her free online webinar events) at JeannieBurlowski.com.
Can’t My Kid Just Declare Independence – and Get Way More Financial Aid for College That Way?
The auditorium where I’d just spoken was emptying out, and the dad who’d just walked up to the front was smiling at me — like he had a special secret that no one else knew. He folded his arms, rocked back on his heels, and got ready to tell me just why he was never going to need my help getting his kids’ college paid for.
“I don’t have to worry about that,” he told me. “I’m going to have my kids ‘declare independence’ from me. Then my income won’t count on their financial aid forms, and the money for college will just roll on in.” Then he tilted his head and smiled at me. “That’s what I did when I was in college, and it worked out great for me.”
I’m so sorry to tell you, Dad — your information is long outdated.
Here’s why declaring independence from parents no longer helps students get extra financial aid for college.
The rules have changed.
Prior to 1992 a student could claim independence from his or her parents if 1) “the parents didn’t claim the student as an exemption on their tax returns for two years” and 2) “the student provided evidence that he or she was self supporting.” The laws have changed since 1992, though, so this definition of “independent student” is no longer valid.
The new rules are inflexibly strict.
Under the current rules, which you can see here, a student must satisfy at least one of the following criteria in order to be considered independent for financial aid application purposes.
Students are only “independent” if they satisfy one or more of the following criteria.
1. The student is 24 years of age or older by December 31 of the award year.
2. The student is an orphan or ward of the court or was a ward of the court until the student reached the age of 18.
3. The student is a veteran of the Armed Forces of the United States.
4. The student is a graduate or professional student.
5. The student has legal dependents other than a spouse. (Dependent means receiving more than half the individual’s support from the student.)
6. The student is married.
If the student doesn’t satisfy any of these requirements, then the student is automatically a dependent student.
“Oh, no. Isn’t there any way around this?!?!”
There are a few creative ways around these rules. You can see the kind, sympathetic article I wrote for students whose parents refuse to fill out financial aid forms here.
“So, what’s the most important thing for me as a parent to do right now?”
The very first step for parents is always this: You must make a plan for your own retirement first, before you start thinking about your kids’ college. This is a nonnegotiable. My best advice for parents is to visit a certified financial planner as early as you can, solidify a good quality retirement plan, and only then start strategizing about college.
Find a financial planner who specializes in paving the path to college and the path to retirement at the same time.
Do you know anyone who’s successfully declared independence from parents since 1992, and gotten extra financial aid as a result? How did they do it? LIKE Jeannie Burlowski, Author on Facebook and let’s talk about it there.
Do you know any parents who are currently thinking through how to get their kids’ college paid for? SHARE this post on Facebook, Twitter, and Linkedin right now.
Who is Jeannie Burlowski?
Jeannie Burlowski is a full-time consultant, author, and speaker. She helps parents set their kids up to graduate college debt free and move directly into careers they excel at and love. Her book LAUNCH: How to Get Your Kids Through College Debt Free and Into Jobs They Love Afterward is available for a very limited time through kickstarter.com. You can see Jeannie’s inspiring 3-minute video (and get an invitation to one of her upcoming free online webinar events) at JeannieBurlowski.com. Follow Jeannie on Twitter @JBurlowski.
Jeannie Burlowski is not affiliated with Focus Financial or Royal Alliance Associates, Inc.