Dependent vs. Independent Student: Which Are You?
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Portions of the following article were drafted using an in-house natural language generation platform. The article was then reviewed, fact-checked, and edited by multiple members of our editorial team prior to publishing.
The Federal Student Aid office distributes more than $120 billion in financial aid every year. And as you fill out the Free Application for Federal Student Aid (FAFSA), you'll figure out your dependency status — and how much aid you can qualify for.
The FAFSA uses your status as a dependent or independent student to determine your financial aid eligibility. Understanding this status and its implications can help students and their families better prepare for the financial responsibilities of higher education.
We'll take a closer look at the differences between dependent and independent students, as well as special circumstances that may affect the application process for federal financial aid.
What Is a Dependent Student?
A dependent student is assumed to be financially supported by their parents, is usually under the age of 24, unmarried, without dependents, and not a veteran or currently serving in the U.S. military.
Dependent students must include their parents' financial details when completing the FAFSA. Your family's financial profile will determine your Student Aid Index (SAI) on your FAFSA and could result in you qualifying for less aid.
If a student does not meet any of the specific conditions for independent student status, they are considered dependent.
If you are classified as a dependent student, your parents can take out a Federal Parent PLUS Loan, which gives them a fixed interest rate for the life of the loan. Your parents can also receive education tax credits when they fill out their federal tax return.
What Is an Independent Student?
For the purposes of the FAFSA, you are considered an independent student if you are at least one of the following:
- Age 24 or older as of December 31 of the award year
- A graduate or professional student
- Married
- Someone with at least one legal dependent who lives with you and receives more than half of their financial support from you
- An active-duty military service member or veteran
- An orphan, ward of the court, or in foster care after reaching age 13
- A court-ordered emancipated minor
- In a court-ordered legal guardianship
- An unaccompanied youth who is homeless or at risk of becoming homeless
If you meet one of these conditions, you may be required to provide documentation to verify your status during the application process.
The Federal Student Aid office does not use parents' or guardians' financial information to calculate independent students' SAI. As such, independent students may qualify for more aid (assuming they have a lower SAI).
A college financial aid administrator can provide a dependency override to change a dependent student’s status from dependent to independent in extreme situations that often involve an involuntary dissolution of the family, such as when it would be unsafe for the student to have contact with their parents.
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How Does Your Dependency Status Affect the FAFSA?
Your dependency status plays a crucial role in determining the type and amount of financial aid you may receive through the FAFSA. The Federal Student Aid Office determines a student's SAI based on their dependency status. Schools then use your SAI to create a financial aid package designed specifically for you.
As a dependent student, your annual and aggregate federal student loan limits are typically lower than those for independent students. However, your parents can apply for a Parent PLUS Loan to help cover your educational costs.
If your parents are denied a Parent PLUS loan because of an adverse credit history, you will become eligible for the higher federal student loan limits available to independent students.
If you have at least one parent supporting you, you'll likely have more financial resources, support, and/or savings to fall back on and will thus require less aid to attend.
Independent graduate students have higher loan limits and can apply for Grad PLUS loans.
It's important to understand that your tax dependency does not determine your FAFSA dependency status. There are specific criteria you must meet to be classified as independent for the purposes of the FAFSA.
What If You're a Dependent Student Without Family Support?
The Federal Student Aid office assumes that dependent students will get financial support from their families. But what about dependent students without family support?
Luckily, if your parents refuse to or can't complete the FAFSA, you can still qualify for unsubsidized federal student loans.
If your parents are indeed not in a financial situation to support you, this will reflect in your SAI. A lower SAI may then qualify you for a larger financial aid package, even as a dependent. Filling out the FAFSA does not obligate your parents to help you pay for college or to borrow parent loans.
If your parents refuse to provide financial information, the federal government recommends filling out the FAFSA and explaining your special circumstances. Students who have no contact with their parents should also fill out the FAFSA and report special circumstances to their school's financial aid office.
Frequently Asked Questions About the FAFSA
Do independent students get more FAFSA money?
Typically, independent students tend to receive more funding from the FAFSA than dependent students. This is primarily because the SAI for independent students is often lower, as it does not take into account their parents' income and assets.
The average SAI for an independent student is about 5,000, compared with an SAI of about 20,000 for a dependent student. Independent students are more likely to have lower SAIs, which would qualify them for grants and student loans.
The extent of additional aid varies depending on individual circumstances. If you're a dependent student whose parents earn a low income, you could be offered just as much aid as an independent student.
How does my dependency status affect my SAI?
Your dependency status significantly influences how your student aid index is calculated. If you're a dependent student, your parents' financial circumstances, including their income, assets, taxes paid, and family size, are all taken into account.
The value of your parents' assets is evaluated to determine a contribution from assets.
This is then added to their available income to calculate their contribution towards your college expenses.
The goal of this method is to accurately depict a family's financial strength and their potential ability to cover educational costs.
Conversely, if you're an independent student, the calculations are based solely on your personal financial circumstances (and your spouse's, if you're married) without considering your parents' financial data. The formulas used to calculate these contributions can vary and are updated every year to reflect changes in the economy and cost of living.
How do I increase my FAFSA amount?
Increasing your FAFSA aid requires strategic planning around your submission timing and financial information.
It's a good idea to submit your FAFSA as early as possible, as some states distribute aid on a first-come, first-served basis. Colleges also may have two FAFSA deadlines — a preferred deadline and a regular deadline — with more financial aid available for students who apply by the preferred deadline.
Try to reduce your assets, as students are generally required to contribute a higher proportion of their assets towards college costs than their parents. Also, avoid artificially increasing your income during the prior-prior tax year. You'll report your assets as of filing your FAFSA, but you'll have to report your income based on tax returns for two years prior. For example, the 2024-25 FAFSA is based on income and tax information from 2022.
Prepare for potential merit-based aid opportunities by applying to schools where you could be a top candidate. Keep your options open and consider all schools, even private schools, as they might offer substantial financial aid packages.
Do I need to fill out the FAFSA every year?
Yes, you must file the FAFSA every year to maintain your eligibility for federal student aid.
Your financial circumstances can change from year to year, and both the government and educational institutions use your FAFSA to assess your eligibility for financial aid for the upcoming academic year. Therefore, it's crucial to submit the FAFSA every year to ensure continued access to federal loans, grants, and work-study programs.
Note: The insights on this page — excluding school descriptions — were reviewed by an independent third party compensated for their time by BestColleges. Page last reviewed March 26, 2024.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute professional financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact a professional advisor before making decisions about financial issues.
