Divorce affects college financial planning in ways many parents don’t anticipate. When families go through divorce or are blended through remarriage, college financial aid applications become more complex. Understanding how the system works helps you secure the greatest benefit for your children.
What Is EFC and How Is It Calculated?
Colleges use the Expected Family Contribution (EFC) to determine how much financial aid you can receive. For a deeper dive into how EFC works, see our detailed guide on college financial aid EFC. Families submit information via the FAFSA (Free Application for Federal Student Aid) each year, as eligibility changes based on circumstances.
The Renewal FAFSA streamlines applications in years 2-4.
Your financial need = Cost of attendance minus your EFC. However, just because your child qualifies for aid doesn’t mean their college of choice can provide it fully. Look for the school’s “percentage of need met” metric during your search—the gap between what your child qualifies for and what the school provides can be significant.
What Is the CSS/Financial Aid PROFILE?
While most schools use the FAFSA, about 200 colleges require the CSS/Financial Aid PROFILE as well. The CSS is more detailed and assesses eligibility for non-federal aid (institutional grants, scholarships, and loans). Some schools use both or a combination.
Critical Info for Divorced Parents
Identify the Custodial Parent Correctly
A common mistake: confusing the custodial parent with the dependent claimed on tax returns. For financial aid purposes, the custodial parent is whoever the student lived with for the majority of days in the prior year—not who claims them as a dependent.
On the FAFSA:
- “Parent #1” = the custodial parent
- “Parent #2” = the custodial parent’s current spouse (if remarried) or left blank (if unmarried)
If the custodial parent is living with someone, that person’s income counts as non-taxed household income.
Income and Support Considerations
The FAFSA doesn’t ask about the non-custodial parent’s income, but does ask about child support received. The CSS, however, requests financial information from both custodial and non-custodial parents.
School-Specific Requirements
Colleges vary in their requirements. Call the financial aid office to ask if they require separate filings from the non-custodial parent or have special procedures for divorced families.
Planning as a Team
College planning during or after divorce is emotionally taxing. Communicating with an ex-spouse can be difficult, especially when the relationship is strained. Ideally, divorce agreements address college funding, but this isn’t always the case.
When possible, parents benefit from putting emotions aside and working together to build a solid plan. This teamwork helps your child transition more smoothly and gives them a strong foundation for their adult years. Alternative funding strategies are available through ways families can start saving for college and alternatives to 529 plans, and special options exist like 529 to ABLE rollovers for children with special needs.
College planning is central to broader financial planning, so working with an advisor helps coordinate education savings with other goals.
Need help navigating college planning with your family situation? Start a conversation with us to discuss strategies that work for your family.
