Custody and Financial Aid Considerations for College-Age Children
By Mara Berke | Los Angeles Lawyer Magazine | October 2019
Divorced, Separated, or Unmarried Parents face specific challenges in obtaining financial aid to afford college costs. Lawyers may be unaware of the daunting details that parents and their prospective college student must address. There are so many tasks to perform and decisions to be made. Which test to take: Scholastic Aptitude Test or American College Test? What should be safety, target, and reach schools? What decision plan: early decision one, early decision two, early action, and/ or regular decision? What kind of personal statement writing style best markets the student's individuality? Then, there is the Common Application that most colleges accept and the University of California's separate, proprietary application.
These decisions become further complicated if parents are separated, divorced, or unmarried and need help financing college costs. Although college policies require both parents to contribute, this may not be the reality for some families. One parent may refuse to pay for college. A student may have little or no relationship with one of the parents. What can parents do if they find themselves in these circumstances? Start early. Make a plan. Be strategic.
Choices parents make as to their "separation" or "divorce" may impact financial aid and how to strategically complete the financial aid forms. Most colleges require two forms: the Free Application for Federal Student Aid (FAFSA) from the government and the College Scholarship Service profile (CSS) from the College Board. The FAFSA-required by all colleges when financial aid is sought-is based upon the prior year's federal tax return. The CSS is required by many colleges, but mostly by private colleges rather than public universities. It is based on federal tax returns and additional information. The key issue for this population of parents is deciding who is the custodial parent and whose financial information will be the basis for the financial aid award.
The FAFSA form is available for filing after October 1 each year and is completed when the student is a senior in high school (and every year thereafter when applying for aid though deadlines vary by college). Applicants are encouraged to apply early to have the best chance of obtaining aid. Ideally, the parent with the least income would complete the FAFSA to increase the student's chances of receiving aid. However, determining which parent that is depends on certain requirements that parents can anticipate and plan around, or at least try to do so in a high conflict custody situation. A parent's marital status is considered as of the date the parent completes the FAFSA.
