When you are going through a divorce, your child’s college education might seem like a distant concern. Your immediate focus is most likely on custody arrangements, asset division and adapting to new living situations. However, overlooking college funding during this crucial time can lead to significant financial stress down the road.
Recent changes to the Free Application for Federal Student Aid (FAFSA) for the 2024-2025 school year have introduced new considerations that are particularly relevant for divorced families. Understanding these updates is vital in supporting your child’s educational goals far into the future. Here are four FAFSA changes that every divorced parent should know.
A new definition for “parent of record”
Previously, the term “parent of record” refers to the parent with whom the child lived the most. However, as of the 2024-2025 school year, the parent of record is now the parent who paid the most to support the child. This change could influence your decisions about child support and day-to-day expenses, as these factors now directly impact which parent will be responsible for the FAFSA.
Treatment of child support payments
As part of the new updates, child support payments are now treated as an asset rather than income on the FAFSA. Considering this when discussing support arrangements is important, as it could impact your long-term college funding strategy.
The impact of remarriage on FAFSA
If you are the parent of record and you choose to remarry, the FAFSA will now consider your new spouse’s tax information. This could influence your decisions about the timing of remarriage or how you structure your finances post-divorce.
Planning for your child’s future
As a divorced parent, it is crucial to stay informed and plan ahead to secure your child’s educational future. These FAFSA changes bring new considerations that can significantly impact your family’s college funding strategy. Remember to regularly review and adjust your plans as needed and keep new government guidelines in mind. By doing so, you can better support your child’s aspirations despite the end of your marriage.
