Option for Dependent Students without Help from Parents
Please carefully read this tip if your parents are unwilling to provide you with any financial support nor income information for the FAFSA.
It is now possible for dependent students to complete an online FAFSA without parents' information so you may receive federal unsubsidized loans... but it is always in your best interest to include your parents' income information.
Pros and Cons to submitting a FAFSA without parents income information:
Pro: A federal unsubsidized loan is far superior to alternative/private education loans and credit cards.
Pro: Some federal aid is better than no federal aid... which was previously the reality for students in this situation.
Con: Only an unsubsidized loan can be awarded. You will be ineligible for Pell Grant, SEOG Grant, ACG and SMART grants, LEAP grant, need-based scholarships, work-study award, Perkins loan, federal subsidized loans, and Parent PLUS loans.
Con: Unsubsidized loans are the least desirable federal aid available to students.
Con: Student may not receive any financial support what-so-ever from a parent, including living at home with parents or using a vehicle owned by the parents.
Con: The amount of unsubsidized loan is limited to the annual grade level limit for dependent students (Freshman = $5,500; Sophomore = $6,500; Junior/Senior/Post-Bacc = $7,500).
Con: Your FAFSA will be Rejected by the federal FAFSA processor so student will need to work closely with Financial Aid Counselor to process the application and to award unsubsidized loan.
If you have unusual circumstances (e.g. severe estrangement from parents, parental incarceration, documented abandonment) that have caused you to become independent, it may be more appropriate for you to file a Petition for a Dependency Override.
Instructions for submitting a Petition for Dependent Students without Parental Help
Parent(s) need to complete and sign the parent section of Petition
Student must write a detailed letter explaining your circumstances and how you plan on supporting yourself without parental involvement/financial support from July 1, 2011 - June 30, 2012.
Student must provide a detailed budget showing sources of income and anticipated expenditures from July 1, 2011 - June 30, 2012.
Student is to notify the financial aid counselor when online FAFSA has been completed and rejected by the federal FAFSA processor