Many years ago parents had their children move down the street, rent an apartment and declared them independent of parent finances when it came to paying for college. The federal government, the states and colleges caught on quickly and they made it very difficult to be an Independent Student for financial aid purposes until the student is 24. The only exceptions were for those students who were married; veterans of the military; in graduate school; had a dependent for whom they’re providing at least half of the financial support; an orphan (both parents deceased) or a ward of the court until age 18 or they entered college. The only other way to become an Independent Student was to make a case for a “professional judgement” from a financial aid director and hope she or he felt your life circumstances justified declaring you an Independent Student. The financial aid director risked the college’s entire federal financial aid program if an audit was done and the Independent Student status was deemed inappropriate.

Well, a lot changed as of July 1, 2009 thanks to the College Cost Reduction and Access Act (CCRAA), here are some of the highlights.

Orphan or Ward of the Court:
The orphan/ward of the court criterion has been expanded to include any student who has been an orphan, or in foster care or a ward of the court at any time after turning 13 years of age. Youth adopted after their 13th birthday will not need to include their adoptive parents’ income, assets and other information when it comes to determining federal student financial aid eligibility.

Emancipation or Legal Guardianship:
Previously emancipation or legal guardianship only could be considered for a “professional judgement,” but the Independent Student status has been expanded to include students who at age 18 (or the day they file the FAFSA if not yet 18) are emancipated or in legal guardianship as determined by a court of competent jurisdiction in the student’s state of legal residence.

Homelessness:
Homeless youth previously had to appeal to a financial aid director for a professional judgement for Independent Student status, but after July 1, 2009 the Independent Student definition has been expanded to include any student who has been verified during the school year in which the application is submitted as either:
• An unaccompanied youth who is a homeless child or youth, as such terms are defined in section 103 the McKinney-Vento Homeless Assistance Act; or
• An unaccompanied youth who is at risk of homelessness and is also self-supporting.
An unaccompanied youth must be verified as either homeless or at risk of homelessness by at least one of the following:
• A local educational agency homeless liaison, designated pursuant to 722 (g)(1)J(ii) of the McKinney-Vento Homeless Assistance Act;
• The director or a designee of the director of a program funded by the Runaway and Homeless Act:
• The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act; or
• A financial aid director

Additional information on the McKinney Homeless Assistance Act is available on the Department’s Web site at:
http://www.ed.gov/programs/homeless/legislation.html.

One additional change worth noting:

CCRAA also allows the financial aid administrator to make the student an Independent Student based on a documented professional judgement made by a financial aid administrator at another college for the same award year. Previously, the financial aid director was required to make his or her own independency override determination for the incoming transfer student.