Financial aid independent student

Financial Aid Process differs with whether the student is dependent or independent. As per the Federal law students of 24 years are being considered as Independent Students. The Free Application for Federal Student Aid (FAFSA) determines a student status as either an independent student or a dependent student.

The applicant will be considered as independent if he meets at least one of the below requirements.

Should be have at least 24 years

Should be married

Should be veteran of the U.S. Armed Forces

Should be in legal guardianship as determined by a court in your state of legal residence

Be an orphan or ward of the court

Have legal dependents other than a spouse, be married, or be in graduate school

Generally student consider of "Independent" student as if their parent's income tax is not claimed for consecutive two years.Below factors are not considered as an independent student:

If a student decided to move out of his/her parent's home

If parents request the student to move out of the parent's home.

A parent's unwillingness to provide parental data on the student's Financial Aid forms.

A student's unwillingness to seek Financial Assistance from his or her parents is not a valid reason to grant independent status.

A student's ability to pay his/her own educational expenses.

Financial Aid Office of a school or college asks to submit the documents of independency proof. An independent student should show only his/her assets and income as proof. Independent students are eligible for all federal Financial Aid Programs. They do not need a parental source to help meet the costs of attendance, and may qualify for the maximum subsidized and unsubsidized loan amounts to compensate for this lack of Financial Assistance. The Financial Aid includes tuition and fees, books and supplies, room, board, travel and miscellaneous expenses.

Unlike normal student Independent Students are eligible for Financial Aid. If an Independent Student is not eligible for need-based Financial Aid he can apply for merit-based scholarships, based on academic or other talents. The management will consider for unsubsidized loan program. Also, most colleges have student employment opportunities that are not based on financial need.

As per the need analysis methodology, all graduate and professional students are considered as Independent Student. The expected parental contribution of them also determined by need analysis, which is helpful in determining the eligibility for certain loans and scholarships, including University Scholarships, Scholarships for Disadvantaged Students (SDS), Loans for Disadvantaged Students (LDS), and Primary Care Loans (PCL) etc.

Before going for Financial Aid a student should have clarity of:

The maximum limit of loan amount

The rate of interest

Also decide about the interest payment modules whether it is subsidized or payable while the student is in school

If not interest can be payable in 3 installs of a year

Governing policies of capitalization or compounding of interest

Maturity date of the loan and grace period

Loan repayment period and repayment options

Minimum monthly installments

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