Can We Consider a Student Independent If Parents Filed Separate Tax Returns But One Parent Is Incarcerated?

Scenario: We have a student whose parents are married and filed taxes separately so both parents are FAFSA contributors. However, one parent is now incarcerated and cannot complete their portion of the online FAFSA since they do not have access to the internet. We do not believe this warrants a dependency override since the non-incarcerated parent still supports the student, and the student does not have unusual circumstances. We are trying to determine if the student can complete the 2024-25 FAFSA with only the non-incarcerated parent's information and have the school add the other parent, or whether we can make a determination that the fact that one parent is incarcerated constitutes an unusual circumstance even though the student is supported by one parent.

Answer: Unless the student has an unusual circumstance that prevents the student from contacting both parents or that making contact would pose a risk to the student, they cannot answer "yes" to the provisional independent student question on the FAFSA and a dependency override would not be appropriate. Similarly, if the student's parents are willing to provide their information on the FAFSA, the student cannot apply for a Direct Unsubsidized Loan only. If the incarcerated parent does not have internet access, the student and both parents should complete a paper FAFSA. It's all or nothing in these circumstances--that is, the student and non-incarcerated parent cannot file the online FAFSA while the incarcerated parent files the paper FAFSA.

This is due to requirements under the Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act), which requires consent from each FAFSA contributor (student, spouse, parent as applicable) to obtain federal tax information (FTI) from the Internal Revenue Service (IRS), as well as to protect the confidentiality of that FTI. This means the financial aid administrator (FAA) will no longer be able to file an original or a renewal FAFSA on the student's (or parent's) behalf. This means the FAA will no longer be able to file a FAFSA on the student's behalf using the online FAFSA, the FAFSA Processing System (FPS), EDExpress, or any other method. There are no exceptions, not even for incarcerated students or parents.

See the May 12, 2023 Electronic Announcement (GENERAL-23-34) and AskRegs Knowledgebase Q&A, Is Parental Incarceration By Itself a Sufficient Reason For a Dependency Override?