Grants and Scholarships

Will declaring myself independent at 19 while making $3000 in a summer job help me qualify for student grants?

I am currently paying for college with a $35,000 loan per year. I heard somewhere that if I declare independent on my taxes that I will be eligible for government grants that would help me reduce my debt. However, I also heard that there is a minimum amount of money I have to make per year to do this and I am currently only making $3,000 through summer employment.

Public Comments

1. no, it will hurt you more than help
2. Federal student aid still takes into account what your parents make, whether they are helping you or not.
3. I used to be concerned about the same thing as you during my first two years in college. According to my tax advisor, if you are under the age of 23, you will be considered a dependent of your parents regardless. Even though I am not considered as independent on the tax papers, I still was able to receive alot of grants. Also, if you keep your GPA up by at least 3.0, they will take that into consideration and give you more grants too. For better answers, feel free to contact your tax advisor or any tax advisor and ask them about your situation. Good luck!
4. The $3K you are making for the summer is for this year? If so, then it won't be taken into account for your financial aid until next year's application. All financial aid, with the exception of private loans based on credit or aid based solely on GPA, use the previous year's income tax statements to determine need. If you filed independently for last year's taxes (the taxes that were due April 15th 2007), that is the tax statement that will be used to determine need on your FAFSA. If you are listed as a dependent on your parent's (or anyone else's) taxes for the recent tax season, the FAFSA will use that statement of income to determine need. You don't say if you are working during the year as well or if the $3K summer job is your entire annual earnings. IF that's the only money you make for the entire year AND you have filed independently for the recent tax season AND you aren't a dependent, then you will more than likely qualify for quite a bit of aid. Talk to a financial aid advisor. Although a financial advisor can help you with money matters, a financial aid advisor at your school can better explain your resources, avenues of aid, and qualification guidelines. That is what they are there for and it won't count against you or hurt your aid. Unfortunately, unless you had already been filing by yourself and were not claimed on anyone else's taxes as a dependent, your aid for the 2007/2008 school year will be based on your parent's taxes (or whoever claimed you) to determine your aid (including grants not based on solely on GPA). You can claim yourself and independent but you would also have to file your taxes by yourself and be sure no one else is claiming. You would also have to make enough during the year to file by yourself (because the IRS has income limits for who has to file and who doesn't - check their website). If you don't hit those guidelines, the FAFSA will go by your parent's or whoever claimed you last. Again, talk with a financial aid advisor. Financial aid is tricky and full of loopholes and assistance. The money is out there but it takes someone experienced and knowledgeable to not only find it but figure out how to qualify you for it. You are carrying alot of debt if you're carrying $35K in loans/year. I hope you can find assistance that doesn't have to be paid back to help you. Best of luck!
5. You can't just "declare" yourself to be independent for federal student aid purposes. The FAFSA has very clear questions that determine your status. See Section 2 - questions 48-55.