What is FAFSA dependency status?

• A. Dependent status considers family circumstances
• B. Independent status always increases aid
• C. It affects how aid is calculated and eligibility for some programs
• D. Dependency status is unrelated to aid

Answer: (C)

Dependency status on the FAFSA determines whose financial information is used to figure your aid and which programs you can qualify for. If you’re a dependent student, you include your parents’ information, and that parental income helps calculate your expected family contribution (EFC), which in turn affects how much need-based aid you might receive. If you’re independent, you report only your own (and your spouse’s, if applicable) income and assets, and you’re often evaluated against a different set of rules for aid eligibility. Because of that split, dependency status directly changes both how aid is calculated and which programs you’re eligible for.

The other options don’t capture this impact as accurately: while dependent status does involve family circumstances, that alone doesn’t explain how aid is calculated; independent status does not guarantee more aid; and dependency status is indeed related to aid.