Financial Aid for college. What happens if parents are divorced and one parent isn't filing taxes??

Question

My daughter will be a senior next year and wants to go to college. Her father & I divorced over 5 years ago and he has not filed taxes since then. He has federal tax liens against him for 2 years and also has $15000 in student loans that he stopped making payments on and they're in default. I'm assuming this will keep my daughter from obtaining any sort of financial aid, but I'm hoping there might be some way around it?? It kills me to think that her future will be impacted because her father is an idiot.

Any advice/answers would be appreciated!

Answer 1

If your daughter lives with your more than 50% of the time, you provide more than 50% of her support, or are the parent with physical custody then you will not need the ex-husbands information at all for the FAFSA form.  Only yours and your daughters information, and if you re-married, the step-father.  

That probably takes care of your issue nice and tidy like.  This is providing that none of his issues with tax-liens or credit issues has your name on any of it.  If your name is mired in that mess you will likely have issues applying for and receiving parent plus loans or co-signing private loans for your daughter (if necessary).

I hope that helps ease your thoughts on it.  Speak to your daughter's financial aid office about the situation and I am sure they will give you much of what I said above.

Answer 2

First, we need to determine which parent (you or the idiot's) tax information should go on the fafsa.  If she is living with him for the majority of the time then his info (and his wife if he has one)'s info would be on the fafsa. If she is living with you then your info (and your hubby if you have one)'s info would go on her fafsa.  Since you are divorced from her father only one set of parents info would be listed.

Her father being defaulted on a student loan will have no bearing on her getting financial aid, unless of course he wants to take out a loan in his name to pay for her schooling.  If his info should be reported on her fafsa then there is an option regarding his income that says:  "Will not file" referring to the income tax return.  

Honestly, I'm not sure if will will go through or not, if he LEGALLY is suppose to file income taxes.  But i suppose the only way to find out if it will go through with the financial aid office is to call and ask them.  They may require him to file before they issue fin aid.  Not sure.  Sorry.

Also you might do the fafsa4caser to get an idea if she might qualify for fin aid.  This is a calculator set up specifically for parents and high school students by the Dept of Education to get a better view of what kinds and how much fin aid they can expect when they go off to college.