My daughter asked about her status as an "independent" this past week. She's headed to college in the fall and she's ready to be on her own. But, the ability for Cora to call herself independent depends upon the reason to become independent in the first place. If that sounds confusing, you can only imagine what it may sound like to a teenager?According to the teen, it sounds like you don't want to let go. According to the government, you can't let go if you want to obtain financial aid for your teen's college career.

Unfortunately, the government has a huge say in whether a teen is "independent" or not, especially when that teen is headed to college and she's seeking loans from the FAFSA (Free Application for Federal Student Aid). The reason federal student aid is so important is that it is easier to gain financial aid through the government than it is through the local bank. And, these generous federal loans usually are provided at a much lower rate than bank loans. During this time of interest rate chaos, the ability to choose a FAFSA college loan is important.

Additionally, FAFSA allows the student to obtain other monies such federal grants and what they call "workstudy" eligibility. On the school side, the FAFSA helps the school to determine how much to grant the student through scholarships and how important the "workstudy" issue is in that student's eligibility. For instance, if a school charges $27,000 for a school year, a student can receive up to half or more of that $27,000 through grants and scholarships and work study programs. The other half can be financed through FAFSA loans and through parent and student savings.

Granted, a student's grades have much to do with how much money is granted at times. The 'merit' part of those monies is far different than the 'need' side, and often the merit monies are more than the money granted for a need basis. Of course, how much money is thrown the student's way depends upon the student, her grades and abilities, her parents' financial status, and what that student wants to study. But, there's one certainty: the FAFSA only works for students who apply (it's free - what have you got to lose?).

If nothing else, FAFSA will help a student determine her independence. When you head to the FAFSA site, just click on the link for "Determine Your Dependency Status" under #1. You'll find a worksheet that will help you and your teen learn more about dependency boundaries. Here's the breakdown for the 2008 college school year:

1. If that teen was born after January 1, 1985, that teen probably is a dependent, unless other issues are involved (below).
   
   
2. If that teen is heading to college for an undergraduate rather than graduate degree, then that teen probably is a dependent.
   
   
3. If that teen is married, then that teen may be independent (but that's another whole can of worms, and caveats are involved?).
   
   
4. If that teen is responsible for dependents who live with her (other than children or a spouse), then FAFSA says that teen may be an adult.
   
   
5. If that teen has children who receive more than half their support from that teen, then she is considered an adult.
   
   
6. If that teen is an orphan or a ward of the court, then that teen might be considered independent.
   
   
7. If that teen currently is serving in the U.S. Armed Forces for purposes other than training, then that teen is considered an adult.
   
   
8. If that teen is a veteran of the U.S. Armed Forces, then that teen is considered independent.

Since my daughter answered, "no," to all those questions, she is considered a dependent and she must supply her parent(s) financial information to the government or to any school that requests that information to determine the limits of monies granted. If she had been married, joined the U.S. Armed Forces, or had become responsible financially for others, then her status would be different. And, the government would note this and reward monies accordingly.

Since the timeline for her dependency status is four years from now (each year the "born after" deadline moves forward one year), then she'll remain dependent upon her parents for another four long years. Unless, of course, she gets married, joins the military, etc. So, her course has been charted, and she will remain a dependent as long as she remains in college.

"Ah-ha!" the teen thinks?maybe I can put off college! Well, that's a decision for the teen to make, as most teens are considered independent by the resident state at age 18 or upon graduation from high school. So, the ability to enter college and receive monies (and to go into debt) is not a light decision for that teen to make. And, it makes it just as difficult for the parent, as the parents must set boundaries at that point as to what they will and won't do for college down the road.

I've learned from my experience that age isn't a barrier to achieving financial aid from college - after all, I received a full scholarship for my final year in a graduate program at age 50. But, that was my path, and everybody's path is different. That money, by the way, did not come from FAFSA, although FAFSA is quite generous with their student graduate loans to independent students.

Beyond the FAFSA boundaries for dependency, I have to question whether my daughter is ready for independence. She has no clue how much she has in her checking account at times, and that's a dangerous state of financial affairs. Perhaps after learning - once again - how to balance a checkbook this summer, I might be ready to declare my daughter capable of handling independence. After all, a little more dependency now might remove the possibility of taking care of a twenty-something child down the road.

Until Later,
Linda Goin