Will registering as independent hurt my financial aid?

Question

My EFC this year was 4111 (just one dollar over the limit for receiving some very awesome grants). I live in Colorado. Not much is going to change in my financial situation for next school year. I live on my own and support my self entirely over the summer and use student loans during the school year while maintaining a part time job. I register as dependent, but my parents don't give me money or help me pay for anything (they are divorced). Should I register as independent, or will it hurt my financial aid status? Also, will it increase my taxes or decrease my tax refund?

Answer 1

Best Answer - Chosen by Asker

In order to be independent (according to the government), you have to answer yes to one (or more) of these questions:

I've bookmarked this site...

http://www.FinancialAidQuick.com/

All the best to you.

Asker's Rating:

Asker's Comment:

Thanks!

Answer 2

If you are under age 24 chances are they won't allow you to file as an independent student. Its pretty difficult to do it, you can and should try but you'll probably wind up being classified as a dependent just because of your age. Even though parents may not help with college at all, the system still expects/assumes that they will and should be responsible for part of your expenses.
Kind of a crappy system for a lot of people but not really any way around it. Try it but don't get your hopes up.

If you are able to file as independent then your EFC would go down and you would probably get a lot more aid since they wouldn't be taking your parents income into account anymore.

I have no idea about the tax stuff though sorry.

Answer 3

How you file your taxes (if that is what you are referring to when you say "registering as independent") has nothing to do with weather you report your parents on your fafsa application. You can't "choose" to file their financial info on your fafsa, either you meet the requirements to include them or you don't.

Generally when someone files their taxes and are not claimed as a dependent by someone else, they do get a bigger refund. But when that happens the person that claims them looses far more money than what the dependent gains.. not to mention if they are paying for your health insurance and other medical expenses you'd likely loose that.