Professional Judgement Update: New Rules About What To Do When the Parent Refuses to Complete a FAFSA.
Piper Lutbak
The Higher Education Opportunity Act (HEOA) of 2008 provided new authority to permit schools to offer an unsubsidized Stafford Loan to a dependent student without parental completion of the FAFSA, as long as the school verifies that the parent(s) does not provide financial support (this includes cash and non-cash support, such as room and board), and refuses to file the FAFSA. This new provision is not the same as the dependency override provision.
When faced with such a situation, the school will need to obtain written documentation from at least one parent (self-certification from the dependent student is not sufficient) stating that the parent(s):
- has ceased to provide financial support for the student (including the date when the financial support stopped),
- will not provide such support in the future, and
- refuses to complete the parental section of the FAFSA.
If the parent(s) refuses to provide such documentation, the school can accept the statements from a third party, such as the student’s teacher, clergy, or the court.
Before making a decision the school may, but is not required to, determine how the student intends to financially support him or herself without parental support.
The student must complete and submit the FAFSA to ensure that he or she is “eligible,” including all of the required student information and certifications. The student’s parent(s) will not be eligible to apply for a PLUS loan on the student’s behalf.
The amount of the unsubsidized loan in this instance may not exceed the base amount for the student’s applicable grade level, plus the additional $2,000 for dependent students made available from the Ensuring Students Continued Access to Student Loans Act (ECASLA) of 2008.