Will My Husband’s Retirement Ruin Our Daughter’s College Plans?

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Dear Penny,

My husband and I have an age gap of 15 years between us. We have an 18-year-old daughter getting ready to head off to college come September 2022.

My husband will be 63 in that same month and was hoping to retire at 65 like the rest of his siblings, but we just won’t be able to afford the expected family contribution (EFC) dictated by the FAFSA if he stops working before she graduates in four years.

This has caused many arguments between us. He is adamant he will not work beyond 65. What advice do you have for us?

-A.

Dear A.,

For what it’s worth, I agree that your husband is being unreasonable. When you have children later than your peers, that often means you have to work longer. The federal financial aid system expects parents to contribute to their child’s college education. Of course, what I think isn’t going to matter to your husband, though.

Since you’re at an impasse, your daughter needs to plan for the worst. Under no circumstances should she choose a college and then hope her dad has a change of heart in the next two years. She should make college plans assuming your family’s income will drop significantly around the halfway mark.

What isn’t an option — and this is important because misinformation abounds on this topic — is for your daughter to secure more financial aid by establishing herself as an independent student. Independent student status is only available in limited circumstances, like if you’re at least 24, you’re married or have children, or you were an emancipated minor.

A student won’t be considered independent just because their parents don’t claim them as a dependent on their tax returns or the student is self-supporting. So ignore anyone who tells you that there’s a simple way for you, as parents, to avoid paying for part of your daughter’s college.

The good news is that the expected family contribution (EFC) you saw after submitting the FAFSA isn’t…

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