How to Declare Yourself Independent for College Financial Aid

Caitlin Cheney, a graduate of Washington State University, knew that paying for college was going to be a stretch when she couldn't afford the cost of a cap and gown at her high school graduation.

"I didn't have anyone to fall back on for financial support," says Cheney, who left home at 15 with her younger sister. "I found out that financial aid does help us if we have independent status as a homeless or an unaccompanied youth." An unaccompanied youth is defined legally as a minor who isn't under the physical custody of a parent or guardian.

Undergraduate students born before Jan. 1, 1997, who complete the 2020-2021 Free Application for Federal Student Aid, or FAFSA, will be considered independent for federal financial aid purposes.

[Read: Everything You Need to Know About the 2020-2021 FAFSA.]

How to File the FAFSA as an Independent Student

A student can't simply choose to file as an independent on the FAFSA, the application that most schools use to determine financial aid awards. For the most part, the FAFSA relies on parental information unless the student is applying for graduate school.

"Once you're a graduate student you are considered independent for federal financial aid," says Kathy Ruby, a principal in financial aid optimization at consulting firm EAB.

However, applicants to undergraduate programs who are under the age of 24 by Dec. 31 of the award year typically are considered dependent and must go through a complicated process to prove independence for financial assistance.

To file as an independent, review the list of questions provided by the U.S. Department of Education to determine eligibility and consult with a financial aid administrator.

What Is an Independent Student?

An independent student is one who meets certain legal requirements to receive federal financial aid to pay for college based on the student's ability to pay. A dependent student's ability to pay is determined by reviewing information provided by both the student and one or both parents.

By law, to be considered independent on the FAFSA without meeting the age requirement, an associate or bachelor's student must be at least one of the following: married; a U.S. veteran; in active duty military service other than training purposes; an emancipated minor; a recently homeless youth or self-supporting and at risk for homelessness; a parent who provides more than half of the financial support for a child who lives with him or her; or someone who has been in foster care, been an orphan or a dependent or ward of the court for any period of time after the age of 13.

Most undergraduates who qualify for independent status do so because they are married, according to financial aid experts.

[Read: A College Guide for Nontraditional Students.]

But college populations are changing to include more independent and other nontraditional students. Recently, the majority of college students in the U.S. were independent -- about 51 percent, according to 2011-2012 data from the National Center for Education Statistics, the most recent figures available.

Before 1992, a student who was totally self-sufficient, not claimed as an exemption on a tax return and had earned at least $4,000 per year in nonparental aid for two consecutive years preceding the award year could be considered independent.

Dependency Status Override

Today, however, a student's self-sufficiency is not enough for financial aid administrators to grant a dependency override, an administrative ruling that treats the student as independent.

Financial aid officers say it's rare for a college to grant a dependency override, and usually only in a "dire circumstance" such as a student who may have recently been granted a divorce, who comes from an abusive home or whose parents are incarcerated, for example.

"Each school has to make their own decision on the dependency override," says Ruby, who once worked at the financial aid office at St. Olaf College in Minnesota.

A dependency override can also be granted to a youth who is verified as homeless or at risk of being homeless, experts say. That status has to be documented by a neutral third party such as a high school counselor, pastor or shelter director.

"For the dependency override, the student has to jump through a lot of hoops to get one," Ruby says.

Students who consider themselves independent because of parental refusal to fill out the FAFSA don't qualify. The guidelines say that a parent's refusal to provide information for the FAFSA or a student's self-sufficiency isn't enough to warrant a dependency override, experts say.

[Read: 5 Myths About Parent Information on the FAFSA.]

"For those students with refusal of parental support, they can only receive a small student loan and aren't eligible for any grants," says Cyekeia Lee, director of community collaboration at the Kalamazoo Promise and former director of higher education initiatives at the National Association for the Education of Homeless Children and Youth, which helps homeless youth and unaccompanied minors access higher education.

"Students may get an apartment, work in retail or fast food and put themselves through school because of parental refusal," Lee says. "But that doesn't grant independency status."

Students who don't meet the guidelines to qualify as independent can take out unsubsidized student loans. The financial aid they receive may not be as generous as the available Pell Grants or subsidized loans, but experts say unsubsidized loans are often preferred over private ones.

Students who have special circumstances but don't qualify for independent status might consider inexpensive college options like community college.

For students who qualify for a dependency override, it's important to stay in contact with both the admissions and financial aid departments, Cheney says.

"Don't be too proud," she says, "and try to talk to the financial aid office or admissions because they need to know about your home situation."

Trying to fund your education? Get tips and more in the U.S. News Paying for College center.