| AwardYear: 1996-1997 Edition: PostSecondary Part: 3 - - Filling out the Free Application for Federal Student Aid SectionNumber: SectionTitle: Section D "Student Status" PageNumbers: 67-69 PURPOSE: The questions in Section D determine whether a student is considered a dependent student or an independent student under the law for purposes of calculating an EFC. This section is important in determining a student's EFC under the federal need analysis formula. An independent student does not report parental information on the FAFSA. A student's income and assets are always included in the EFC calculation. A financial aid administrator may override a student's dependency status in individual cases if he or she decides that a student should be considered an independent student, regardless of the answers to the questions in Section D. INDEPENDENT STUDENT DEFINITION Questions 40-45 ask a student whether he or she meets any of the criteria that would establish him or her as an independent student. A student is automatically considered independent if he or she meets at least one of the following criteria: - the student was born before January 1, 1973; - the student is a veteran of the U. S. Armed Forces (Army, Air Force, Navy, Marine Corps, or Coast Guard); - the student will be enrolled in a graduate or professional program (beyond a bachelor's degree) in 1996-97; - the student is legally married on the date the student signs the application; - the student is an orphan or a ward of the court (or has been a ward of the court until reaching the age of 18); or - the student has legal dependents other than a spouse. The instructions explain each criterion in greater detail. The student should READ THESE INSTRUCTIONS carefully, because they define some of the terms used, such as "veteran," "legally married," "orphan," and "legal dependent." Note in particular that the definition of veteran now includes students who attended one of the service academies and were released under a condition other than dishonorable. A student answering "yes" to any question in Section D will be classified as an independent student, even if the student is still living with his or her parents. After Section D, the form asks for parental information and student/spouse information separately. An independent student is not required to fill out any parental information, although some aid programs for health professions study beyond the bachelor's degree level may require the information. A dependent student gives information about himself or herself in the WHITE AREAS and about his or her parents in the red areas. The dependent student and a parent must sign the FAFSA. An independent student gives information only about himself or herself and about his or her spouse (if married) by filling out the WHITE AREAS and GRAY AREAS. The student must sign the FAFSA. DEFINITION OF "PARENT" The term "parent" is not restricted to a student's natural parents. There are several instances in which a person other than a student's natural parent is treated as the student's parent. If this person is considered a parent to the student, as defined by the list that follows, then the parental questions on the application must be answered as they apply to that person. ADOPTIVE PARENT--is treated in the same manner as natural parents. FOSTER PARENT--is not treated as a student's parent. LEGAL GUARDIAN--is treated in the same manner as a natural parent, if he or she has been appointed by the court AND if he or she has been directed by the court to use his or her financial resources to support the student. This legal relationship must continue beyond June 30, 1997. If a student is living with his or her grandparents, the same principle applies. Unless the grandparents have adopted the student or are the student's court-appointed legal guardians and are required by the court to use their resources to support the student, the income of the grandparents cannot be reported on the FAFSA. See the FAFSA instructions for more information. STEPPARENT--is treated in the same manner as a natural parent if the stepparent is married, as of the date of application, to a student's natural parent whose information will be reported on the FAFSA or if the student has been legally adopted by the stepparent. THERE ARE NO EXCEPTIONS. The federal need analysis system does not recognize prenuptial agreements. If the natural parent has died and the stepparent survives, then the student is independent (assuming the student is not dependent on the surviving natural parent), unless the stepparent legally adopted or is the legal guardian of the student. Note that the stepparent's income information for the entire base year, 1995, must be reported even if the parent and stepparent were not married until after 1995. In cases of death, separation, or divorce, a student must answer parental questions on the FAFSA as they apply to the surviving or responsible parent. DEATH OF PARENT. If one, but not both, of the student's parents has died, the student will answer the parental questions on the basis of the surviving parent and will not report any financial information for the deceased parent on the FAFSA. If both the student's parents are dead when the student fills out the FAFSA, the student must answer "yes" to Question 44, making the student independent. If the last surviving parent dies after the FAFSA has been filed, the student must use the STUDENT AID REPORT (SAR) to update his or her dependency status and all other information as appropriate. DIVORCE OF PARENTS. If the student's parents are divorced or separated, the student should report the information of only one parent, the parent that he or she lived with the most during the past year. IT DOES NOT MAKE A DIFFERENCE WHO CLAIMS THE STUDENT AS AN EXEMPTION FOR TAX PURPOSES. If the student did not live with either parent or lived equally with each parent, then the parental information must be provided for the parent from whom the student received the most financial support or the parent from whom the student received the most support the last time support was given. SEPARATION OF PARENTS. If a separation has occurred, the same rules as for a divorce should be used to determine which parent's information must be reported. The separation need not be a legal separation--the student's parents may consider themselves separated when one of the parents has left the household for an indefinite period of time and no longer makes a substantial contribution to the finances of the household. However, if the parents still live in the same house, they would not be considered separated, and information for both parents must be reported. COMMON-LAW MARRIAGE. If the student's parents are living together and have not been formally married but meet the criteria in their state for a common-law marriage, they should report their status as married on the application. If the state does not consider the situation to be a common-law marriage, then the parents should file the FAFSA as if they are separated. Check with the appropriate state agency concerning the definition of a common-law marriage. |