Independent or Dependent

[X]

From what I understand, for financial aid reasons, we are going to be considered independent. However, some schools ask for parent info for need based aid. The question is, can your parents still claim you as a dependent on their taxes? Will that affect getting loans? I tried talking to the school, but the lady I spoke with didn't answer it fully. Her answer "we can't tell you how to file your taxes, you have to ask the IRS." Hmmmmm really???

The question really is - will filing as a dependent affect the loan eligibility?


X

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[carrigallen]

Originally posted by X
From what I understand, for financial aid reasons, we are going to be considered independent. However, some schools ask for parent info for need based aid. The question is, can your parents still claim you as a dependent on their taxes? Will that affect getting loans? I tried talking to the school, but the lady I spoke with didn't answer it fully. Her answer "we can't tell you how to file your taxes, you have to ask the IRS." Hmmmmm really???

The question really is - will filing as a dependent affect the loan eligibility?


X

1. The IRS has strict definitions of dependency. You will need to read about that.

2. For financial aid purposes, the FAFSA considers students entering into a professional school as independent. However, most institutional aid is contingent upon providing parental information, regardless of dependency status.

 

[X]

1. I meet those definitions for dependency. Legally my mom can claim me as a dependent.

2. I am sending the school parental information.

However, the non-institutional aid (Loans, etc.), will they still consider you independent even if your parents did claim you as a dependent. Will the eligibility for loans be different if you are dependent or independent, or will it be the same?

X

 

[motmas]

1. The IRS has strict definitions of dependency. You will need to read about that.

2. For financial aid purposes, the FAFSA considers students entering into a professional school as independent. However, most institutional aid is contingent upon providing parental information, regardless of dependency status.

I believe carrigallen is right. As I understand it, once you get your bachelor's degree (or meet the other criteria) the federal government considers you independent, regardless of your filing status with the IRS.

So, how does this affect your eligibility for loans? The FAFSA will calculate your EFC based on your income, not your parents, because you'll be considered independent. Therefore, you are considered independent in your eligibility for federal loans (Stafford, etc.).

For institutional aid (and some programs through DHHS, IIRC), you will have to provide parental financial information, and your dependency status may affect your eligibility for that. I think that depends on the institution.

HTH