Self-Employed Parent

Dear Paula,

Your husband’s self-employment should not affect your daughter’s eligibility for financial aid. It may be a little more challenging to obtain the necessary tax information for the applications, as there will be no W-2 form to reference. Other than that the process and results should be the same for your family as it would be for any other. You will need to fill out the Free Application for Federal Student Aid (FAFSA), available online at www.fafsa.ed.gov. Just make sure that the income and taxes paid information you enter on the FAFSA matches the information submitted to the Internal Revenue Service for the same year.

I’m glad you wrote, Paula, as I receive many similar questions throughout the year. The bottom line is that everyone should fill out the FAFSA every year, since just about everyone is eligible for some type of federal financial aid—be it in the form of loans, grants, or Work-Study. Student loans are not income based, so unless the borrower has a prior outstanding default or has reached the aggregate loan limit, these loans should at least be available.

Regards,
Betsy