How much will the govt. take into account my income, as opposed to my parents', on the FAFSA?

Question

Since the govt. insists on looking at my parents' financial info (even though I'm an adult and pay my own way through school but I'm not yet 24), and I made somewhere between around $8000 last year, will this hurt my chances of getting federal grants (since it's more money that my family now has, as opposed to if I hadn't worked at all last year)? How much do they take into consideration my income versus that of my parents? Should I just stop working from now on while I'm in college, will this give me a better chance of getting grant money?

If the govt. only looked at MY income (because I'm the ONLY one paying my tuition) like they should be doing instead of looking at my parents' as well, then I would understand keeping my job, as I would not make enough this year to not qualify for financial aid. But since Uncle Sam looks at both our incomes, my income is just EVEN MORE money added to the mix to disqualify me.

Answer 1

the above answer isn't 100% correct. Taxes and the FAFSA are two different things. If you're parents do or do not claim you, it won't make a difference.

It all depends on how much your parents made last year, and how many other people are in your household. If it's just your Mom, Dad, and yourself and you made $8000, and they made $60000 then unfortunately there aren't many options other than your Subsidized loan. But if you make your $8000 and your parents make $35000 and there are 4 other siblings in your household, you'll be able to get quite a bit.

If you have any more specific questions, please email me, I'd be glad to help.

Answer 2

If your parents claim you as a dependent on their income tax for the previous tax year, their income is going to be mainly what is looked at.

It's better for you to keep your job, 8000/year is going to get you some financial aid, and if that were your only income, I think you'd be in great shape as far as the FAFSA is concerned.

The hardest thing is that your parents are going to have to stop taking you as a deduction for a full year before you can go on your own income. So even if you worked all of 2006 with no help from your parents, it is the 2007 school year before you are considered not a dependent.