For the purpose of getting more for student loans, should I claim myself on my tax return?

Question

I am 20 years old and a college student. Next school year I will need as much money as possible for my student loan. According to the FAFSA, I am not eligible to be independent. Is the same true for loans? Am I better off claiming myself or letting my parents claim me?

Thanks!

Answer 1

If you are dependent on the FAFSA you will be dependent irregardless of whose tax dependent you are. Most people confuse tax dependency status with FAFSA dependency status and the one is not related to the other. If you do not meet one of the criteria to be independent on the FAFSA you are dependent for all financial aid purposes.

Answer 2

It might be possible for private student loans, but it would probably depend on your credit rating score. The answer might be different for the federal student loans. However, if you are currently attending a community or junior college and will transfer to a 4 year college or university, the EFC should adjust to the new school. I recommend trying for some outside scholarships if possible to limit the need for student loans. I will include some free resources to locate them.

First, the college's financial aid office and website has a list of private scholarships offered from outside organizations and companies. Sometimes a college major's website will list scholarships, too.

Second, the public library has a book listing scholarships with some not even listed on the web.

Third, try for the work study program on campus. It will provide both valuable work experience and income.

Finally, I recommend joining several free membership scholarship search websites. There are scholarships for a variety of things including ethnicity, clubs, hobbies, and even wearing duct tape to the high school prom. Most are updated on a regular basis. Most offer a customized search based on information entered onto a form on the website.

Good luck!

Answer 3

in the eyes of financial aid, the FAFSA is the final word. so if it says you re a dependent then you are a dependent. if you file this year as a dependent, you will be listed the same next year. if you want to be an independent, you are going to have to claim yourself this year and then next year you can say you re an independent on your fafsa and you will have the tax return to back up your claim.

Answer 4

Unless you are married, have a dependent or a bachelor's degree, you have to use your parent information on your FAFSA. It doesn't make a bit of difference if your parents claim you or not.

Federally subsidized loans are granted through the FAFSA.

If you don't need the deduction (if you don't make enough $ to pay taxes), your parents will probably want to claim you.

Good luck!