Going through a divorce or being divorced can bring many uncertainties, especially when it comes to planning and preparing for your child’s college education. In this post, we’ll debunk some common myths and provide facts to help you better navigate planning for college and paying for college.
Divorce often feels overwhelming, I know being divorced myself, but understanding the realities of college planning can help you make informed decisions for your child’s future. Below we’ll explore some of the most common myths and then the actual facts to help you better prepare for college and for saving money on the cost of college..
Myth #1: Only the custodial parent’s income matters for FAFSA.
Fact: The FAFSA Simplification Act changed this. Now, it is the parent who provides the most financial support for the child who completes FAFSA. However, it is possible for the other parent’s income and assets to be required for some colleges and the CSS Profile. It’s important to understand the financial aid policies of each institution before deciding to apply. Also, it is important to note that step parents financial information may be requested as well.
Myth #2: My child won’t get financial aid because we’re divorced.
Fact: Divorce does not automatically disqualify your child from financial aid. In fact, the separation might make your child eligible for more aid. Many colleges only consider one parent’s income and assets.
Myth #3: We can hide assets to increase financial aid eligibility.
Fact: Attempting to hide assets can lead to severe penalties, including loss of financial aid. It’s essential to provide accurate information. Instead, focus on legitimate strategies like proper timing of asset transfers and spending down assets where appropriate.
Myth #4: Scholarships aren’t available for children of divorced parents.
Fact: Many scholarships are available regardless of parents’ marital status, and some specifically support children of divorced parents. Research and apply for scholarships early and often. Look for scholarships directly from the colleges and use Google to search for “Hard To Find” scholarships. You can also visit www.CollegeFinancialPrep.com/Scholarships to see an entire listing of scholarship sites and databases.
Myth #5: If my child wants to go to college, they can pay for it themselves.
Fact: It is very hard for a student to fully fund their own college education. The federal government will only give the students student loans up to $5,500 for their Freshman year. The rest typically falls on the parents or on the parents as co-signers for the children who also take out private loans.
Myth #6: FAFSA awards you free money.
Fact: FAFSA stands for the Free Application for Federal Student Aid. It is just an application. The application is review by the federal government who will determine if the student qualifies for any need based aid such as Pell grants from the federal government. Then the FAFSA application is sent to the colleges being applied to. The colleges will then each determine, independent from one another, how much aid, if any, to additionally award to each student.
Myth #7: A divorce decree dictates financial responsibility for college costs.
Fact: While a divorce decree can outline who pays for college, it does not bind colleges or financial aid offices. It’s important to plan and communicate clearly with your ex-spouse to ensure funds are available when needed. The colleges typically do not care what is stated within your divorce agreement
Myth #8: Only biological parents’ financial information is considered.
Fact: Stepparents’ financial information is also considered in the FAFSA if the custodial parent remarries. This can impact financial aid eligibility, so it’s crucial to understand how a new marriage affects the financial aid process. It is even possible with the CSS Profile, in the case of two remarriages, for all four parents to have to submit their financial information to the colleges.
Myth #9: You can’t change your financial aid status after divorce.
Fact: If your financial situation changes significantly due to divorce, you can request a professional judgment review from the financial aid office. Providing documentation of your new financial status can result in adjusted aid.
Myth #10: All schools handle divorce situations the same way.
Fact: Financial aid policies vary widely among institutions. Some schools require additional forms or information from both parents, while others follow FAFSA guidelines strictly. Always check with each school to understand their specific requirements.
Vicki Vollweiler is the Founder of College Financial Prep. With her MBA (and life/divorce coach training), she helps parents maximize savings on the cost of college.
Services offered include:
* College planning
* Merit and Need Based Scholarship Searches
* Financial Aid Form Preparation (FAFSA, CSS Profile, state forms)
* Appeals & Negotiations
* Student Loan guidance
* Extenuating circumstances such as divorce and job loss
