Expert: David Disraeli - 9/18/2009

Question
My situation is a long and complicated one, but I have no where else to turn. I took out a SallieMae loan years ago for a degree. It was filed as a "career training loan", which does not allow deferment, or consolidation. The payments are too high for me to pay now, and they will not disburse money for me to even finish my degree. Their solution was for me to fill out FAFSA and use that money to pay them. When I went to fill that form out I am still considered a "dependent" of one of my parents and they will base the amount with mine and their yearly income. The problem I have is I have filed my federal taxes for the last 3 years as an independent. Why won't that be considered? I am a single woman working full time providing for myself for years, but FASFA still wants to base my amount on parents? Please help!

Answer
Hi Becky,

As you have found, FASFA is a complex world and there is no way to really help you via email.  Independent status is very narrow and has nothing to do with your filing status.  If you are working full time odds are filing independent would hurt you, not help you.  They assess your income much higher than your parents.  

To help you I would need a lot more information.  To start with, how old are you?  What will you make this year?  Do you know what your parents make?

Since I have no idea who you are - I think it would be safe to share this information with me.  If you want to try this both ways on your own sign up for www.collegedata.com and run it as an independent and under your parents.  It's free.  You much be 24, or married, or ex military to qualify as independent.  There may be ways around it, but it is not easy.  

Let me known if you want to take this to the next step by answering these questions.

David Disraeli CFP