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I am a full-time student who is making $10,000 a year, while my husband earns an average of $45,000 annually. Therefore, I was deemed ineligible for a Pell Grant even though I pay for school on my own.
I’ve currently accumulated over $20,000 in federal student loans and have two more years to go for my bachelor’s degree. Should I divorce my husband (just on paper), then file for professional judgment with the school to be eligible for a Pell Grant? Otherwise, I will owe double the debt by the time I graduate.
Also, I have my health insurance through my husband’s employer. Will I be still eligible for the insurance as a domestic partner?
-K.
Dear K.,
It’s possible that you’d qualify for a Pell Grant if you got divorced, but I’m not sure that it’s practical. A paper divorce is occasionally used by the extremely wealthy to save money on taxes, as well as people with lower incomes who need to qualify for government benefits or more financial aid. Some people have strong aversion to this strategy, but I’ll avoid delving into the morality or the potential legal ramifications and stick to the financial issues.
Pell Grants are reserved for undergraduate students who demonstrate the highest level of financial need. They’ve gotten a lot of attention lately because President Joe Biden’s student loan forgiveness plan will eliminate $20,000 of federal loans for recipients of the needs-based grants versus $10,000 for all other borrowers.
There’s no neat formula for determining your Pell Grant eligibility. The formula is based on your school’s cost of attendance, your expected family contribution as determined by FAFSA, and whether you’re a full-time student. Most Pell Grants go to students whose families make less than $30,000.
Since you’re married, you meet the federal government’s criteria for an independent student, which means that your parents’ income isn’t used to determine your financial…
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