2025–2026 FAFSA for Divorced Parents: What You Need to Know

Navigating the 2025–2026 FAFSA can be complex for divorced or separated parents. Understanding the updated rules is crucial to ensure your child receives the maximum financial aid eligibility. This guide provides clarity on the key changes and how they impact your FAFSA application.

Key Changes for Divorced Parents

Determining the Custodial Parent

For the 2025–2026 FAFSA, the custodial parent is now defined as the parent who provides the most financial support to the student, not necessarily the parent the student lives with the most. Accurately identifying the custodial parent is crucial for completing the FAFSA correctly.

Stepparent Income Consideration

If the custodial parent is remarried, the stepparent’s income and assets must also be reported. Including stepparent financial information can affect the Student Aid Index (SAI), potentially reducing eligibility for need-based financial aid.

Child Support Reporting

Child support received is considered an asset rather than income for FAFSA purposes. Assets are assessed differently than income, so understanding this distinction is important for maximizing financial aid.

Steps to Complete the FAFSA Accurately

  1. Identify the Custodial Parent: Determine which parent provides the most financial support.
  2. Collect Financial Documents: Gather tax returns, W-2 forms, and records of untaxed income for the custodial parent and stepparent if applicable.
  3. Complete the FAFSA Form: Fill out all required sections accurately, reflecting current financial circumstances.
  4. Review and Submit: Double-check all entries to prevent delays or errors in financial aid processing.

Additional Considerations

  • Dependency Status: Confirm whether the student is classified as dependent or independent, as this affects the information needed.
  • Verification Process: Be ready to provide additional documentation if requested by the financial aid office.
  • State and Institutional Aid: Some states and colleges have separate forms and deadlines; check requirements for each institution.

The 2025–2026 FAFSA introduces important changes for divorced parents. By understanding these updates and carefully following the steps, families can complete the FAFSA accurately and optimize financial aid for their child’s college education.