college residency and fafsa/tax implications?

[Hannathy]

Doing it that way would be very difficult; as PP have said, getting out of the "family contribution" rule is very difficult these days.

However, claiming her as a tax dependent cannot help, no matter what the situation is. If she is living with a different branch of the family, then presumably that household is supporting her, not yours.

While NOT claiming her as a dependent probably won't make a legal difference in terms of her actual residency status, claiming her as a dependent is pretty much guaranteed to shoot down any appeal that she might make re: add'l financial aid on the grounds of what is known as "parental refusal." If she is granted a parental refusal exception her own income will be what is taken into account for loan qualification, but it doesn't qualify the applicant for Federal grant money -- no Pell grants.

(I understand that you are claiming that you cannot afford to give her financial support, not that you simply don't want to, but in legal terms it is the same thing: if she will look for adjusted aid eligibility because you don't support her, it really doesn't matter why not.)

I know a couple kids whose parents won't give them anything for school and their schools didn't have anything called a parental refusal
They were just told their aid was according to their parents fafsa and that was all they qualified for whether their parents gave them anything or not. So don't count on this adjusted eligibility.

 

[gwynne]

As far as the Federal Government and the FAFSA it is extremely hard to do this before she is 24. Very hard unless she plans on getting married!

Exactly. Getting married, joining the military, becoming 24 or becoming a parent..those are the main ways to become "independent".

 

[gwynne]

I know a couple kids whose parents won't give them anything for school and their schools didn't have anything called a parental refusal
They were just told their aid was according to their parents fafsa and that was all they qualified for whether their parents gave them anything or not. So don't count on this adjusted eligibility.

Schools have had to get tough with parents who "refuse". Totally understandable.

 

[lisalis]

Every state is different, but I worked and took 2 classes each semester for the first year to establish residency and get in state tuition where I attended. I could take 2 classes with the in state tuition rate. I was never considered independent of my parents, even though they did not support me financially. Even after I got married the summer before my last year of college, the school still used my parents' financial information for that next school year.

 

[tasha99]

This is a tricky issue. We lived in one state from the time my son was 7 years old until he graduated from high school at age 18. He was accepted at a state college in this state. Right before school started his freshman year at college, my husband was transferred out of state. My son was charged in state tuition until he applied for transfer to a different college in the same state at the end of his sophomore year. Then it was decided that my son was now a resident of the state where my husband and I were living! It took months of hassle with the school before they finally agreed that he could keep paying in state tuition.

You really need to discuss this with the Admissions office at your daughter's preferred college. Or better yet, try to get her to attend an in state school.

As for the FAFSA, my son was required to submit this when he applied to law school and had been self supporting for several years. He was over 24 as well.

This happened to us this year! I moved to Alaska the year my daughter went to community college. She has been an Oregon resident ever since 3rd grade. She transferred to U of O this year, and they wanted to make her an Alaskan resident. It took us a month of paperwork and an Affadavit w/ proof of everything to get them to change their minds. Good thing--there is no way I could have afforded out of state tuition.

 

[MKCP5]

sigh.....it's all so hard. She has worked very hard to get into some great schools and due to some issues that I wont bother going into, we literally just can't help her financially except minimally. You want to tell your child to dream big, to go after their hearts desire, but then you have ugly realities to deal with. I can't be a good parent without urging her to be fiscally responsible and not take out big loans, but it is ultimately her choice. Wish there was another way.

 

[GAGirlInVA]

I had a quite different situation at 18. I was no longer living at home and had not been since I was 17. I was self supporting and my parents paid nothing (not even health insurance.)

I was still required to provide my parents' information. I didn't have a choice. But they wouldn't give any information to me (because while they preached education, they were not going to do anything to help me.)

The financial aid officer at my school said that only people that were married or had a child could get out of the parent's FAFSA before 24. (I've since been told that in some extenuating circumstances it is possible-- jail, orphan, etc.) I didn't even live in the same state as my parents. (I lived across the state line.)

My mother intended to claim me on her taxes that year (even though I had lived elsewhere for over 6 months.) I couldn't stop her unless I claimed myself first.

So we moved our wedding up from spring to right before Christmas. And magically, not only could my mother not claim me, but I was independent for FAFSA. And I had health insurance again.

(Not saying that this is a route for your daughter, just explaining that residency may not be easy to establish, and even if it is, your child may still be required to give your info. It's best to ask the school.)

 

[Southernmiss]

sigh.....it's all so hard. She has worked very hard to get into some great schools and due to some issues that I wont bother going into, we literally just can't help her financially except minimally. You want to tell your child to dream big, to go after their hearts desire, but then you have ugly realities to deal with. I can't be a good parent without urging her to be fiscally responsible and not take out big loans, but it is ultimately her choice. Wish there was another way.

We have 4 kids who have always done well in school and we are very proud of them.

Oldest ds is in his 2nd year of college on full scholarship to a state school. While he was flattered to be accepted to his top choice schools, we had to advise him to go to school where he could graduate with the least debt. He's very happy where he is and feels he's getting a good education and has already had some amazing experiences even at his 4th choice school. He is looking at grad school opportunities for some of his former top choice schools.

Chin up, op it will really work out in the end.

 

[yellowjacketfan]

Exactly. Getting married, joining the military, becoming 24 or becoming a parent..those are the main ways to become "independent".

I actually know a student at a great art school that had a hard time AFTER she was married. She had to take a quarter off to straighten it out. It just takes some time.

 

[yellowjacketfan]

We have 4 kids who have always done well in school and we are very proud of them.

Oldest ds is in his 2nd year of college on full scholarship to a state school. While he was flattered to be accepted to his top choice schools, we had to advise him to go to school where he could graduate with the least debt. He's very happy where he is and feels he's getting a good education and has already had some amazing experiences even at his 4th choice school. He is looking at grad school opportunities for some of his former top choice schools.

Chin up, op it will really work out in the end.

Great advice My dd worked hard and was waitlisted at a couple of excellent schools. She ended up taking a state school instead of waiting.
Turned out one of the other schools ended her major last year. She was just accepted to her major and that program was recently ranked top three in the nation!

 

[MKCP5]

We have 4 kids who have always done well in school and we are very proud of them.

Oldest ds is in his 2nd year of college on full scholarship to a state school. While he was flattered to be accepted to his top choice schools, we had to advise him to go to school where he could graduate with the least debt. He's very happy where he is and feels he's getting a good education and has already had some amazing experiences even at his 4th choice school. He is looking at grad school opportunities for some of his former top choice schools.

Chin up, op it will really work out in the end.

I do believe that everything ends up working out as it is meant to, so I know in my heart you are right, I just need to hear that in my heart right now. I am a little overwhelmed. Thanks for the encouragement

 

[Southernmiss]

I do believe that everything ends up working out as it is meant to, so I know in my heart you are right, I just need to hear that in my heart right now. I am a little overwhelmed. Thanks for the encouragement

It is overwhelming to send a kid to college these days.

Nothing in parenting 101 prepares us for the process. People today still have the misimpression that if your kid is smart and does the right thing, they can wright their own ticket anywhere.

College admittance and paying for it is much more complicated and expensive now.

 

[barkley]

just as a heads up-when you (and dd) are crunching numbers-be sure to find out if the coa (cost of attendance) that the college uses has a housing tier specifically for living w/parents OR immediate family. what happens is the information from the fafsa gets sent to the college and they use that along with their coa to determine any aid, loans, financial need based scholarships....the student may be eligible to. if a student indicates that they will be living off campus/not with their parent it can appear that they are eligible to a higher aid amount BUT when the college realizes they are living with what the college defines as an immediate family member (and in some states this extends to 'family friend') the formula can drastically change and decrease aid/scholarships/loans.

it's a good idea to check with the college to see what formulas they use for housing.

we get allot of non resident students in our part of the state (multiple universities), and it seems like unless they originated from one of the other states that our public colleges and universities have a tuition agreement with (for some majors) the bulk end up attending community college until they become eligible to in-state resident tuition (still expensive but not nearly as high as university non resident tuition).

one other thing to check on for number crunching-find out if dd will end up (during the time it takes for her to become a legal resident of the new state) having to pay state income taxes to 2 states. if she does her net income during that time could be less than she's anticipating.

 

[lucigo]

OP, thank you for this post, lots of good information here. You will have to keep us posted on how it works out.

We have a similar situation, we moved 18 months ago, and now my DD wants to go back to FL and live with her sister and go to school there. Our home is rented out, but I could probably come up with the documents they desire since I own a car registered in FL, have utilites in my name etc. But....our taxes say we live in VA. So I have NO IDEA how it will go.

 

[madge]

It is overwhelming to send a kid to college these days.

Nothing in parenting 101 prepares us for the process. People today still have the misimpression that if your kid is smart and does the right thing, they can wright their own ticket anywhere.

College admittance and paying for it is much more complicated and expensive now.

amen. and amen.

I felt I started DS senior year with a realistic idea of where we would be at this point in the process .... scholarship/aid packages started coming last week, and we've had 2 surprises so far. (one good and one bordering on insulting) DS is still waiting for 2 more offers, and I will be SO glad when we can finally sit down and work through everything. This process has worn us out.

 

[barkley]

amen. and amen.

I felt I started DS senior year with a realistic idea of where we would be at this point in the process .... scholarship/aid packages started coming last week, and we've had 2 surprises so far. (one good and one bordering on insulting) DS is still waiting for 2 more offers, and I will be SO glad when we can finally sit down and work through everything. This process has worn us out.

it's awful isn't it? dd is in her freshman year of college so we're on year 2 of doing all the scholarship/aid paperwork.

one thing that has REALY helped us was making a set of file folders to organize our copies of everything-esp. scholarship applications. that way when we've gone to re-apply we look to what is being requested, check to see if it's something we previously submitted and already have copies on file (or a template).

another tip-if your child receives a scholarship check with whomever it's issued by to see if it's renewable for subsequent years. most will let you know this up front, but in the case of one dd received we only found out b/c I e-mailed her former high school to see if they offered alumni scholarships and learned the one she was awarded was renewable for a second year

 

[floridafam]

Have you checked if she qualifies for an out of state tuition waiver?

Some schools offer those if you have a certain GPA or test score.

 

[danygirl]

Check academic common market.

 

[madge]

it's awful isn't it? dd is in her freshman year of college so we're on year 2 of doing all the scholarship/aid paperwork.

one thing that has REALY helped us was making a set of file folders to organize our copies of everything-esp. scholarship applications. that way when we've gone to re-apply we look to what is being requested, check to see if it's something we previously submitted and already have copies on file (or a template).

another tip-if your child receives a scholarship check with whomever it's issued by to see if it's renewable for subsequent years. most will let you know this up front, but in the case of one dd received we only found out b/c I e-mailed her former high school to see if they offered alumni scholarships and learned the one she was awarded was renewable for a second year

very good tips! I started a folder the second DS started applying to schools ... I knew there was no way we'd be able to stay on top of all the information (he applied to 5 schools) if we didn't!

we were pulled to verify our FAFSA, adding to the fun.

 

[Kriii]

sigh.....it's all so hard. She has worked very hard to get into some great schools and due to some issues that I wont bother going into, we literally just can't help her financially except minimally. You want to tell your child to dream big, to go after their hearts desire, but then you have ugly realities to deal with. I can't be a good parent without urging her to be fiscally responsible and not take out big loans, but it is ultimately her choice. Wish there was another way.

She can't take out big loans on her own. You would have to cosign for more than 5,500 (I think that is the freshman limit for federal loans). Is there an affordable alternative to the out of state school? Best of luck.