Can having a non custodial parent who is in debt increase my financial aid offer?

I live with my mom, who makes pretty good money ~$200,000/yr but is kind of terrible at saving.

Regardless, when I was doing the financial aid forms for my dad’s stuff, I found some very surprising numbers. His income is very far in the negatives. Now, I ran the net price calculators for a bunch of schools and talked with my mom before I knew this. We thought that we should be good. But now should I expect a lot more money because their net income is maybe half of my mom’s alone? Or do they weigh non-custodial parents much less?

Maybe I’m just impatient and should see what the offers are and not try to predict the whims of fickle financial aid offices. was just a little shocked when I saw these numbers and I had a terrible moment of selfishness when my first thought was that this might make paying for college way easier.

Thanks!

I don’t think debt is considered at all. If one parent makes $200,000 and the other $100,000 I wouldn’t expect much.

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Debt is not considered at all. It will not affect aid eligibility.

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How are you getting negative income? (you can’t subtract debt from income when submitting FA forms…if it worked that way, that’s what the NPCs would ask.) How is your father paying for rent, food, etc?

Are you saying you only ran the NPCs with your mom’s income/assets?

FA staff do not act on whims. They have formulas that they follow. Sometimes non-need aid/discounting is directed by admissions.

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I don’t know what negative income is.

If they make $300k or even your mom $200k, few places will give you aid.

What you need is a budget - how much can she afford a year?

Then you find schools that can achieve that budget. Some may do so full price. Some may with merit aid. There are schools that have auto merit so you know up front what things will cost. Others, you don’t so you have to hope So no matter where you desire to go, you make sure to apply to a few schools you know you can get in that will 100% achieve your budget.

There may be a few higher end schools where you can get some money for need with that income, but very few and they are more selective admission wise.

Education has a cost. Colleges will expect your mom to pay. If she can’t save, that’s on her, not the colleges.

Business owners can have negative income for accounting purposes. It doesnt mean theyre broke.

Not sure if that’s what is happening here but it’s possible.

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If this parent owns a business…and the parents are divorced, this family should view the net price calculators with extreme caution.

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Yes, and hopefully OP will clarify. Colleges often disallow many of the deductions that business owners use to create losses.

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debt was not the right word, my bad. my dad does not make anywhere close to $100,000 so idk. On his forms, it says his income is negative.

My dad owns his own business. His 1040 and other forms say negative income, so I dunno.

I did not mean to click send yet whoops.

”Are you saying you only ran the NPCs with your mom’s income/assets?”

My dad has not been forthcoming with his financial information. I have spent the better part of three months calling to him constantly to finally get him to do it. I have had no opportunity to work through it with him, as he does not want to talk to me or see me, and I had barely been able to get him to allow me to do the forms at all.

”FA staff do not act on whims. They have formulas that they follow. Sometimes non-need aid/discounting is directed by admissions.”

I was making a light joke.

I do have a budget and I do have things planned out. I was just not sure how this information has changed anything.

Most of my schools only need the fafsa anyway, there’s only a few where this is even relevant.

I’m sorry that you are going thru this. Is he contributing to your living expenses, like paying child support?

The ways colleges assess business income can be complicated and vary by college. Many will look at the business gross income, and not any of the deductions being taken or the losses the business is generating.

Has your dad completed the css profile at schools that require it (assuming you applied to schools that require it.) As thumper said, NPCs are often inaccurate for people who own businesses. Regardless, your dad’s pretax income and assets will be a factor at all the colleges that require the CSS Profile. It’s hard to say how much that might change things, because you might be full pay anyway, simply from your moms income and assets.To be clear, the losses your dad’s business is generating will not be deducted from your mom’s income/assets.

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So if mom makes $200k, the only thing FAFSA will get you is access to a small loan.

You have a budget - make sure you have a few schools to hit, no matter what. That means under budget full price or with automerit.

If you need a further list of schools that would work, do a chance me.

Good luck.

“I’m sorry that you are going thru this. Is he contributing to your living expenses, like paying child support?”

No, not at all

“The ways colleges assess business income can be complicated and vary by college. Many will look at the business gross income, and not the losses the business is generating.”

mm yeah

“Has your dad completed the css profile at schools that require it (assuming you applied to schools that require it.) As thumper said, NPCs are often inaccurate for people who own businesses. Regardless, your dad’s pretax income and assets will be a factor at all the colleges that require the CSS Profile. It’s hard to say how much that might change things, because you might be full pay anyway, simply from your moms income and assets.”

Yeah I finally got him to do it by calling his accountant and practically begging him to do it.

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I have already applied and done everything. There is just one more I need to actually do by Febuary.

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And you achieved one of those two goals I laid out regarding affordability ?

yeah njit has already given me a practically full ride

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Business losses or capital losses.

However, how colleges may consider such losses may be different from how they are accounted for otherwise.