Maxwell Hills | May 21, 2024 | Divorce

Divorce is a tough time for everyone. It makes significant changes in families, such as family structure and family. Parents often worry about how it will affect their kids, especially if they will still be able to pay for college. It is challenging to get money for college even when things are going well. As you know it gets harder when families do not have as much money after a divorce. 

In this article, we will explore the paramount impact of divorce on a child’s financial aid. Let’s have a look for a better understanding!

Divorce and Financial Aid: Understanding the Impact on Eligibility

When parents get divorced, it changes how much money their child can get for college. This happens because the money and things they own might be different, and sometimes only one parent’s money is counted. So, if the parent the child lives with most of the time does not have much money, the child might get more help paying for college.

Here are some things to know about how divorce affects college money:

  • When applying for college aid, they usually look at the money of the parent the child lives with most.
  • Some colleges need extra forms and look at both parents’ money. They do not bother about the divorce.
  • If something big changes, like a parent’s job or money, the college might give more help.

Parents need to talk about money and make plans together. This way, their child can still go to college even if they are divorced.

Key Factors FAFSA Evaluates for Financial Aid Eligibility”

The FAFSA  looks at important things to decide how much aid a student can get after their parents get divorced. Divorced parents should know about these things because they can affect how much money their child gets for college. 

The main thing they look at is the money of the parent the child lives with the most. But they also think about other stuff like child support, money one parent gets from the other after the divorce, and how both parents are doing financially. These things help them to figure out how much help the student needs for college after a divorce.

Here are some important things the FAFSA looks at after a divorce:

  1. Understanding the Financial Considerations of the custodial parent

One of the significant things about the FAFSA form is that it decides how much money your family is expected to pay for college.

  1. Financial Support for Custodial Parents

If the parent you live with gets money for taking care of you or any other kids in the house. You must mention that money when filling out the forms. As you know it counts as part of your family income.

  1. Alimony Received: Financial Support Post-Divorce

If your parents get money from their ex-partner after the divorce, such as living expenses. So, that money is also counted as part of your family income.

  1. Number of Children in College

If there are more kids from the same family going to college at the same time, the amount of money the family is expected to pay for each kid might go down. This means the student gets more help paying for college.

Divorced parents can get ready and maybe get their children more help to pay for college. This makes it easier for their child to go to college even if their parents are not together anymore.

Balancing College Expenses and Financial Aid in Your Divorce Settlement  

When parents are getting divorced, it is prudent for them to think about how they will pay for college as part of their divorce agreement. This helps avoid confusion and stress later on. This way, they also make clear how they will help their child with college. They decide who will pay for college and how much. Plus, they make a plan for saving money for it, such as using special college savings accounts. They should also talk about other costs for college, such as books and living expenses.

It is not just about money while deciding who pays for the college. it also affects how much financial help the child can get for college. For instance, it decide which parent is considered the main one for filling out college aid forms. Parents should also think about how alimony and child support payments might affect college money.

Talking to a financial expert or lawyer who knows about college money and divorce can be helpful during this process.

Both parents need to keep talking about their money situation and any changes that might affect the financial aid for college for the child. This way, the child gets the most help possible for college.

Wrapping Up

Divorce is challenging and confusing. As you know, it not only affects the social structure of a family but also impacts financially on your child’s college education. In this guide, we have devolved through the whole process,  which not only gives you advice but also supports you along the way.

You must make sure to include plans for college in your divorce agreement. This way, your child’s future education is protected. Plus, you should also look at how alimony and child support might affect college money.