Student Loan Considerations
Private Student Loan Considerations:
FAFSA and the Student with Divorced Parents
In the 21st century, more than fifty percent of all marriages end in divorce. With that in mind, if you are the child of a parents that have divorced, you may be wondering how the status of your parents will effect your ability to obtain government backed or private student loans. Through this article you are provided with vital information relating to government backed and private student loan availability when you are the child or divorced parents.
With this crucial information you will be able to make educated decisions about what educational financing options will be best suited to you and your circumstances. You will be able to ascertain what government backed and private student loan options are available to you today.
The first step that needs to be taken in the overall financial aid process for a student who is from a home in which parents are divorced involves the filing of the FAFSA or the Free Application for Federal Student Aid. The FAFSA needs to be filed by the parent who is deemed to be the custodial parent. In layperson’s terms, this is the parent with whom the student has lived with for the most significant period of time during the past twelve month period of time. (The twelve month period is the twelve month period ending on the FAFSA application date, not the previous calendar year.)
You need to understand that this is not necessarily the same as the parent who has legal custody in the divorce proceedings. If you did not live with one parent more than the other, the parent who provided you with the most financial support during the past twelve months should fill out the FAFSA. This is probably the parent who claimed you as a dependent on their tax return. If you have not received any support from either parent during the past 12 months, use the most recent calendar year for which you received some support from a parent.
In completing the FAFSA, any child support and/or alimony received from the non-custodial parent must be included on the FAFSA.
There are other factors that are taken into consideration in this matter, which include:
- The parent with whom the child lived the most during the past 12 months.
- The parent who provided the most financial support to the child during the past 12 months.
- The parent who provided more than half the child’s support (and will continue to do so).
- The parent who has legal custody.
- The parent who claimed the child as a dependent on their tax return.
- The parent who provided the most financial support to the child during the most recent calendar year for which either parent provided more support to the child.
- The parent with the greater income.
Once you get these steps taken, you will be in the best possible position to determine what type of financing is most suitable to your needs, including a private student loan. You can make an easy determination as to how a private student loan can fit into your overall financing scheme.