Dependent vs Independent – Why It Matters for Student Loans

When applying for financial aid for your higher education, you may have heard people refer to you as either dependent or independent. But what does that mean, and how does it affect your qualifications for receiving funding? College Funding of Tampa Bay is here to explain why these statuses matter when it comes to student loans.

Am I a Dependent or Independent Student?

If you’re not sure whether you’re a dependent or independent student, finding out is rather easy. Most students who are just entering college are dependents because they are still living with a parent or guardian. Everyone else is likely in the other category. Roughly 15% of undergraduate students are independent, meaning that they do not live under a parent or legal guardian. Adults over the age of 24, spouses, and parents who attend college are all considered independent students.

On your FAFSA application, you will need to answer a series of questions that are designed to determine whether you will be classified as a dependent or independent student. A few of these questions include:

• Whether or not the student can be declared a dependent on a tax return
• If the student will be the age of 24 or older once the school year begins
• The existence of children or a spouse that the student can claim as a dependent
• The type of degree that the student will be earning
• If the student is currently on active duty in the US military

Those are just a small handful of questions that you may be asked on your FAFSA application. After answering everything truthfully, you will be notified of your status before receiving an estimate on how much student financial aid you may receive.

How FAFSA Calculates Aid for Dependents and Independents

Whether you are considered dependent or independent, you may receive financial aid either way. However, independent students are likely to receive more aid than independent students.

Dependent students typically receive less aid because they are obligated to include their expected family contribution (EFC) on their FAFSA application and so those calculating the estimated funding assume that members of your household will pitch in for your college costs.

Independent students are a different matter. Since these adults are most likely paying for other expenses like mortgage and utility bills, independent students are more likely to receive additional aid to help them pay for college.

Receiving Adequate Aid as a Dependent

If you’re worried about receiving a low financial aid award because of your dependent status, there are certain cases where you could receive some added help. For instance, dependent students with an EFC of 0% can qualify for the same amount of grants and loans as an independent student would. This can happen if your parent or guardian is incapable of contributing because they are hospitalized or imprisoned. Adult orphans can also qualify for adequate financial aid. If these situations are recent, it’s best to update your FAFSA information immediately to ensure that your financial aid award is adjusted in time.

Consult the Financial Advisors at College Funding of Tampa Bay!

Not sure where to even begin? The friendly financial advisors at College Funding of Tampa Bay can help! Just call (813) 755-6834 to get started on a free consultation.