FAFSA & Divorce Impact Calculator

How Divorce Affects the FAFSA

The FAFSA (Free Application for Federal Student Aid) only requires the custodial parent's financial information. This is one of the most significant financial planning considerations in divorce when college-age children are involved. If there is a meaningful income difference between parents, having the lower-income parent serve as the custodial parent on the FAFSA can dramatically reduce the Expected Family Contribution and increase eligibility for need-based grants, work-study, and subsidized loans.

The custodial parent for FAFSA purposes is determined by where the student lived most during the past 12 months, or which parent provided more financial support. This is not necessarily the same as the legal custodial parent in your divorce decree. Custody arrangements should be reviewed with college financial aid implications in mind.

FAFSA vs. CSS Profile: Key Differences

While the FAFSA only considers the custodial parent, approximately 400 private colleges and scholarship programs use the CSS Profile, which typically requires financial information from both parents regardless of custody. This means the financial advantage of divorce is reduced at CSS Profile schools. Some CSS Profile schools have their own policies—a few only require the custodial parent's information, while others may also consider stepparent income if the custodial parent remarries.

When evaluating colleges, check whether each school uses FAFSA only, CSS Profile, or an institutional form. This information significantly affects your financial aid strategy and should factor into your college list.

Related Calculators

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