Must the Student's Child Live with the Student for the Student to be Independent?

Must the Student's Child Live with the Student for the Student to be Independent?

I’m 23 and have a 4-year-old child. Last year I received

independent status for my financial aid because I supported my child

more than 51% of his needs. This year the financial aid office asked

for the same documents as last year but told me that I couldn’t be an

independent student because I didn’t have enough documented proof. I

explained and provided documents showing that the mother doesn’t work

and I pay $100 a week in child support. I also presented a document

from the mother stating that I am the custodial parent. I also claim

him as an exemption on my income tax return. In reality I pay probably

90% of his expenses. Last year the only problem was that he wasn’t

living with me but I helped pay rent on the home with his mother. This

year he is living with me but the financial aid office deemed that

there wasn’t enough documentation showing that. I asked if the mother

were to apply for this, they then told me it would have been a quick

process and she would have been approved because she is the

mother. Because I’m the father I have to jump through hoops. They

asked me to bring a different document every week for 6 weeks before

they told me I had to apply as dependent. What can I do to fix this

problem? I don’t receive any money from my parents and they already

paid for my education when I was 18 before I had a child and they

don’t want do that again.

— Jeremy B.

There are several ways for a student to be independent for federal

student aid purposes. The most common ways are to be over age 24 as of

December 31 of the award year, to be married, to have dependents other

than a spouse, to be a graduate student, to be an orphan, to be a

veteran or to be serving on active duty in the Armed Forces for other

than training purposes.

To be an independent student by virtue of having a legal dependent

other than a spouse, the student’s child must receive more than half

of his or her support from the student. The student’s child does

not need to live with the student.

Dependents other than a child must live with the student and receive

more than half their support from the student for the student to be

considered independent. Dependent children must receive more than half

their support from the student, but do not need to live with the

student for the student to be considered independent.

Confusion often arises because of ambiguity in the statutory

definition. In 20 USC 1087vv(k)(2), the term “dependent of the

student” is defined as “the student’s dependent children and other

persons (except the student’s spouse) who live with and receive more

than one-half of their support from the student and will continue to

receive more than half of their support from the student during the

award year.” Some people incorrectly interpret the phrase “who live

with” as attaching to both “the student’s dependent children” and

“other persons”. However, it is clear from the similar language in the

definition of “dependent of the parent” in 20 USC 1087vv(k)(1) that

the phrase “who live with” attaches only to “other persons”.

The Application and Verification Guide

clarifies this by repeating the half-support requirement for both

children and other persons and by not repeating the live-with

requirement. The Application and Verification Guide is a source of

subregulatory guidance from the US Department of Education to college

financial aid administrators.

“Children and legal dependents (50 and 51). Students who

have legal dependents are independent. Legal dependents comprise

children (including those who will be born before the end of the award

year) of the student who receive more than half their support from

the student, and other persons (except a spouse) who live

with and receive more than half their support from the student as

of the FAFSA signing date and will continue to do so for the award

year. The same criteria apply to household size.”

Even so, there is still some confusion, so further guidance explicitly states in a discussion of household size for

independent students that the children do not need to live with the

student.

“The student’s children, regardless of where they live, if

they will receive more than half of their support from the student

from July 1, 2017, through June 30, 2018. This includes the student’s

unborn children who will be born during the award year and will

receive more than half their support from the student from birth to

the end of the award year. Foster children do not count in household

size.”

Moreover, the guide gives a clear example in the context of a

discussion of sources of support. For the purpose of the half-support

requirement, support includes any cash or other assistance provided to

the child from sources other than the student’s parents. This includes

child support and government benefit programs, such as TANF and SNAP,

not just support provided by the student. The example highlights a

common scenario in which both the child’s mother and father can each

be dependent by virtue of having a dependent child.

“For example, if a student who lives alone with her child

receives cash from her boyfriend that amounts to more than 50% support

for her child, then she would be able to count the child as a

dependent and in her household size, and she would be independent. If

the boyfriend is the father of the child and a student himself, then

he would also be able to count the child as a dependent and in his

household size, and he would be independent too.”

Sometimes front-office financial aid staff are unaware of these

nuances, and insist that the child is presumed to be a dependent of

the mother and that the father must rebut that presumption. They also

insist that the child can be a dependent of either the mother or

father, but not both. They sometimes also insist that the child must

live with the father to be a dependent of the father. There is no such

presumption in the statute, regulations or subregulatory guidance. The

child does not need to live with the father to be a dependent of the

father, and the child can be counted as a dependent of the father and

also as a dependent of the mother.

Source: Fastweb

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