If your child meets one of six criteria (e.g., married, age 24, or has dependents) he can be considered an “independent student” and your income and assets will not be considered in the financial aid formulas. Your child may then be eligible for financial aid. This aid can be in the form of grants and scholarships and subsidized loans.
Specific Details
The parents reduced their income $5,000 by your child qualifying as an independent student. Since the parents’ income was assessed at 47% the income reduction may increase the child’s financial aid eligibility by $2,350 ($5,000 x 47%). The parents reduced their assets by $5,000 by your child qualifying as an independent student. Since the parents’ assets were assessed at 5.6% the asset reduction may increase the child’s financial aid eligibility by $280 ($5,000 x 5.6%).
Potential Savings
If you are in a financial aid income assessment rate of 47%, you could increase your financial aid eligibility up to $470 for every $1,000 of income reduction by your child qualifying as an independent student. If you are in a financial aid asset assessment rate of 5.6%, you could increase your financial aid eligibility up to $56 for every $1,000 of asset reduction by your child qualifying as an independent student.