These are difficult situations. Current FAFSA rules require parental data be provided for students who do not meet the definition of an independent.

For 2008-09, Independent students are identified as:
The student…
* was born before January 1, 1985
* will be a graduate or professional student
* is married as of the date he applies
* has dependents other than a spouse is an orphan
* is or was until 18 a ward/dependent of the court
* is a veteran of the U.S. Armed Forces
* is currently serving on active duty for purposes other than training

There are a limited number of circumstances where a college financial aid office has the authority to do a Dependency Override that will allow a Dependent student to be considered Independent for financial aid purposes. However, a parent refusing to provide information or assistance, parent not claiming the student for tax purposes, and the student demonstrating complete financial independence are situations not eligible for an override.

If the parent refuses to complete the FAFSA, it may be helpful to have the parent contact the financial aid office and verify that by completing the FAFSA, they are under no obligation to provide assistance nor are they held accountable for loans or college account balances in the student’s name.

Lee Andes
Assistant Director for Financial Aid

While the FAFSA is designed by the federal government primarily for the purpose of identifying students eligible for federal financial aid, the EFC and the individual family data components have gained widespread use for a number of other financial aid related reasons, even if the student might not qualify for need-based assistance.

This may be, as you suggest, for the purpose of collecting statistical analysis of families qualifying for merit-based awards but most often it’s simply a standard office policy so that students can be considered for all forms of assistance. Also, some forms of merit-based awards carry a disclaimer that the award when combined with other forms of aid cannot create an over-award (when combined grants/scholarships is greater than the cost of education).

So, if the student qualifies for need-based aid, then the merit-based award could be reduced accordingly. This allows the student to be fully awarded while allowing the institution to recoup some of its merit aid to use for other deserving students. The college financial aid office will be able to tell you if the FAFSA is required for consideration of the institution’s merit-based programs.

– Lee Andes, State Council of Higher Education

Some families question whether there is a benefit to completing the FAFSA. Because of their high income, they reason that they will not qualify for need-based aid and so completing the form amounts to a waste of time.

In truth, family income is but one of the components for determining aid eligibility. Other factors include family size, cost of living, number of family members in college, and age of oldest parent (for retirement protections). Because of these factors and depending upon the cost of education at a particular college, there are cases where families with income over six figures or more have still been able to demonstrate financial need.

Even if the family does not qualify for the Pell grant – reserved for primarily for very low income students – other forms of need based aid from the state, the institution, or private resources may be available and most of these sources use the financial information provided on the FAFSA.

Finally, to qualify for federal student loans – both need based and non-need based – the student must first complete the FAFSA.

If borrowing becomes necessary, these loans should be the first considered as they provide many forms of student benefits unmatched by private student loans. In short, the FAFSA is an important part of the college preparation process that should be considered by all students.

-Lee Andes, State Council of Higher Education