This page answers common questions about the relationship between divorce and financial aid. It discusses which parent is responsible for completing the FAFSA, the obligations of non-custodial parents to pay for college, college support agreements, the obligations of stepparents, and the ability of non-custodial parents to take advantage of the various tax benefits for education.
Completing the FAFSA
If your parents are divorced, separated, or never married, and don’t live together, the parent who provided more financial support during the last 12 months is the contributor and must provide their information. If both parents provided an equal amount of financial support or if they don’t support you financially, the parent with the greater income and assets is the contributor and must provide their information.
If your parents are divorced, separated, or never married, and don’t live together, the parent who provided more financial support during the last 12 months is the contributor.
If your parents are divorced, separated, or never married; don’t live together; and provided an exact equal amount of financial support or if they don’t support you financially, the parent with the greater income and assets is the contributor.
If contributing parent is now married and did not file taxes jointly with their current spouse, their spouse is also a contributor.
Biological parents who never married are treated the same as parents who are divorced.
Note, however, that any child support and/or alimony received from the non-custodial parent must be included on the FAFSA.
Financial aid applications can be somewhat confusing because there are several different criteria applied for different kinds of parenthood. Here are some guidelines to help you
- If your parents are married (not separated), both of your parents’ information must be included on the FAFSA form, regardless of whether your parents are of the same or opposite sex. If your parents didn’t file taxes jointly, then both of your parents are contributors. If your parents filed taxes jointly, only one parent is required to be a contributor and will report information for both parents.
- If your parents are not married to each other and live together, both of your parents are contributors and their information must be included on the FAFSA form, regardless of whether your parents are of the same or opposite sex.
- If your parents are divorced, separated, or never married, and don’t live together, the parent who provided more financial support during the last 12 months is the contributor and must provide their information. If both parents provided an equal amount of financial support or if they don’t support you financially, the parent with the greater income and assets is the contributor and must provide their information.
- If your parent is widowed, that parent is the contributor and must provide their information.
For additional information on parental situations, review Reporting Parent Information.
College Support Agreements
It is best for parents who are in the process of getting divorced to prepare a written college support agreement in addition to a child support agreement. Such an agreement should specify who is responsible for how much of the college expenses, how many semesters of support will be provided, any limits on annual payments, indexing payments to the tuition at a particular college (e.g., a state college), whether there is an age limit (i.e., up to age 24, when the student becomes automatically independent), and any restrictions on colleges the child may attend (e.g., specific colleges and accreditation, 2-year vs. 4-year, public vs. non-profit). (Although it is common for college support agreements to specify that the child must attend a state college, it is better to index the support requirement against the state college tuition while allowing the child the flexibility to choose another college. For example, one could specify that the non-custodial parent will provide 50% of the tuition at the state college or the college where the child enrolls, whichever is less. It is also common to base the college support requirement on the expected family contribution figure.) The agreement should also specify what constitutes college costs (i.e., just tuition and required fees, or also room and board, transportation, health insurance, textbooks and other educational expenses) and whether there are any requirements the child must satisfy to receive continued support, such as achieving a minimum GPA and taking a minimum number of credit hours. The agreement should also specify whether the college support is to be paid directly to the school, to the custodial parent, to the child, or to a combination. Often the percentage of college costs is divided proportionately between the parents according to income after subtracting non-discretionary expenses such as taxes, basic living expenses and health care. This is the same as the “income shares formula” used by most states for child support.
Section 529 prepaid tuition plans and section 529 college savings plans are especially popular vehicles for funding the college education of children of divorced parents, as they permit the non-custodial parent to limit their financial obligation by prepaying for a set percentage of college costs.
Although child support requirements terminate in most states at when the child reaches the age of majority (usually age 18 or 21), there is often an exception for children who are enrolled in a postsecondary educational institution or have special needs. Even if child support has terminated, the non-custodial parent might still be required to provide college support.
Note that college support agreements might not be binding on the estate of a deceased non-custodial parent in some states (e.g., Massachusetts).
Studies have found that children who have kept in contact with the non-custodial parent are more likely to receive greater support. Fathers with joint legal custody provide more college support than fathers without custody, and fathers with visitation rights provide more college support than those without visitation rights.
Obligations of Stepparents
My parents are divorced, and the parent I’m living with has remarried. Does my stepparent have to report his or her income and assets on the FAFSA?
If contributing parent is now married and did not file taxes jointly with their current spouse, their spouse is also a contributor.
My custodial parent remarried and signed a prenuptial agreement that absolves the stepparent from financial responsibility for my education. Why does my stepparent have to provide financial information on the FAFSA?
Prenuptial agreements are ignored by the federal need analysis process. After all, two individuals (parent and stepparent) cannot make an agreement between them that is binding on a third party (the federal government). The federal government considers the stepparent a source of support regardless of any prenuptial agreements to the contrary. If a stepparent marries the parent, he or she is considered responsible for supporting the parent and children even if he or she is unwilling to do so.
College Support and Income Taxes
Can a non-custodial parent who is paying college tuition directly to a college take advantage of education tax benefits such as the Hope Scholarship?
The non-custodial parent can only take advantage of the education tax benefits when he or she claims the child as a dependent. If the non-custodial parent does not claim the child as a dependent on his or her income tax returns, but the custodial parent does, the custodial parent can claim an education tax credit based on the tuition paid by the non-custodial parent.
