Can we let the kids get free college tuition?

[loveviolet]

When I was younger, my family was poor so I received a lot of college financial aid. My mom didn't have to pay a cent on my tuition. Of course there was still some student loan that I need to pay back, but most of my tuition is free.

I am always troubled by the question:
If my kid claims independent when she is 18 yrs old, wouldn't she qualify for low income person and get financial aid for college? Doesn't it save more than claiming her as dependent on the tax?

[safari]

When your child applies for financial aid, she will need to fill out a form that asks for her parents' income and then submit copies of their tax returns. Whether or not she was claimed as a dependent has no significance on her financial aid eligibility.

[Like2Plan]

If my kid claims independent when she is 18 yrs old, wouldn't she qualify for low income person and get financial aid for college? Doesn't it save more than claiming her as dependent on the tax?

In a nutshell, it is not so simple.

For financial aid consideration, federal regulations state you must meet one of the following requirements to be considered independent from your parents:

Here is a link
link to FAFSA on line

"The US Department of Education considers a student a dependent up until the age of 24 except in certain instances.
Independent Status

* You are at least 24 years old on the day you file your FAFSA
* You are or will be enrolled in a masters or Doctoral degree program at the beginning of the school year
* You are married on the day you file your FAFSA
* You are a parent
* You have dependents other than your spouse who live with you and who receive more than half their support from you at the time you apply
* Both your parents are deceased (or were until age 18) a ward of dependent of the court
* You are currently serving on active duty in the U.S. Armed Forces for purposes other than training
* You’re a Veteran of the U.S. Armed Forces.

If none of the above criteria apply to you, you’re a dependent student - even if your IRS tax status is different, even if you’re legally emancipated from your parents, even if you have no idea where your parents are.

That said, in rare cases, your school’s financial aid officer can override the FAFSA results to help you get more aid if you can demonstrate a compelling case that your parents and family provide absolutely no support, and therefore you’re not really a dependent. This is called a professional judgement override and while they are granted extremely rarely, they do exist."

[moneybags]

Originally Posted by loveviolet

If my kid claims independent when she is 18 yrs old, wouldn't she qualify for low income person and get financial aid for college? Doesn't it save more than claiming her as dependent on the tax?

If it were so easy, everyone would be doing it.

[maat55]

Originally Posted by moneybags

If it were so easy, everyone would be doing it.

In Oklahoma, if you meet certain criteria, you qualify for free in state tuition. Of course, due to the lottery that funds it, the poor are paying for it.

[disneysteve]

Originally Posted by maat55

In Oklahoma, if you meet certain criteria, you qualify for free in state tuition. Of course, due to the lottery that funds it, the poor are paying for it.

I have a friend who just moved to Oklahoma to attend college. I'm sure this had something to do with her choice.

It is ironic that the least educated members of the society are the ones funding the higher education program.

[maat55]

Originally Posted by disneysteve

I have a friend who just moved to Oklahoma to attend college. I'm sure this had something to do with her choice.

It is ironic that the least educated members of the society are the ones funding the higher education program.

True and sad.

[disneysteve]

Though to be fair, maat, I know plenty of non-poor, well-educated folks who also buy lottery tickets. I know that statistically, more are bought by the poor, but it isn't exclusive. I know lots of offices that do lottery pools. We used to do it when I was in med school.

[maat55]

Originally Posted by disneysteve

Though to be fair, maat, I know plenty of non-poor, well-educated folks who also buy lottery tickets. I know that statistically, more are bought by the poor, but it isn't exclusive. I know lots of offices that do lottery pools. We used to do it when I was in med school.

It would be interesting to know the percentages. I used to buy one every once in a while just for the therapeutic value. Just knowing you could win and talking about what you would do with the money, has an aired about it. I still believe overall it is a menace to society just as any gambling, tobacco and other vices.

[loveviolet]

Thanks so much guys for the detailed explanation!

[disneysteve]

Originally Posted by maat55

It would be interesting to know the percentages.

I did a little searching and found several references to the regressive effect of lotteries, but few actual statistics.

There was this:
"Per-capita ticket sales were much higher in lower-income ZIP codes. In communities with average household income below $52,000, the lottery sold an average of $250 of tickets per person annually. That was more than double the amount for ZIP codes with $100,000 households."

and this:
"in zip codes with lower per capita incomes, more tickets were purchased:

Take the towns of Hillsborough and Belleville.

The two have roughly the same population, about 36,000, and similar daytime populations that include people who work but don't live in town, about 42,000.

When it comes to sales of lottery tickets, however, there's no comparison. Average annual sales at stores in Hillsborough, a wealthy Somerset County town, are about $1.8 million. In Belleville, a blue-collar town outside Newark in Essex County, it's $13.3 million."

[maat55]

Originally Posted by disneysteve

I did a little searching and found several references to the regressive effect of lotteries, but few actual statistics.

There was this:
"Per-capita ticket sales were much higher in lower-income ZIP codes. In communities with average household income below $52,000, the lottery sold an average of $250 of tickets per person annually. That was more than double the amount for ZIP codes with $100,000 households."

and this:
"in zip codes with lower per capita incomes, more tickets were purchased:

Take the towns of Hillsborough and Belleville.

The two have roughly the same population, about 36,000, and similar daytime populations that include people who work but don't live in town, about 42,000.

When it comes to sales of lottery tickets, however, there's no comparison. Average annual sales at stores in Hillsborough, a wealthy Somerset County town, are about $1.8 million. In Belleville, a blue-collar town outside Newark in Essex County, it's $13.3 million."

I believe this to be true across the board.