Federal financial aid for foster youth | Quick Guide

Considerations for foster youth as they complete their FAFSA applications

Sacramento State students line up to pay bills and receive financial aid information.
Larry Gordon/EdSource Today

Foster youth in California and nationwide have historically enrolled in college at lower rates than non-foster youth, a difference that researchers have found affects employment and income prospects long into adulthood.

In recent years, foster youth advocates have led a significant push to support students in filing the Free Application for Federal Student Aid, also known as FAFSA, as a way of increasing foster youth college graduation rates and connecting them with support programs.

In 2020, the rate at which California high school seniors who have been in the foster care system applied for the FAFSA surpassed that of their non-foster peers for the first time. While this group of students has made strides in submitting applications, many students continue to struggle with completing the form year after year.

Financial aid makes a significant difference for current and former foster youth, as they experience many upheavals in their early adulthood that create barriers in the college application process. In fact, nearly half of all California foster youth experience homelessness between the ages of 18 and 21, according to John Burton Advocates for Youth, a nonprofit that works to improve the lives of California foster and homeless youth. It’s a time when many are no longer receiving the same level of basic needs support, including financial support, they may have been accessing before age 18.

This quick guide answers questions that often come up for foster youth as they complete the FAFSA, along with information on additional financial assistance for students attending postsecondary institutions.

Why do foster youth need additional support in filing the FAFSA?

“Fosters — they’re more likely to fall through the cracks of the systems that are available,” said Debbie Raucher, project director for education initiatives at John Burton Advocates for Youth.

There are several reasons, which include but are not limited to:

  • Foster youth may not have the family support that non-foster youth may have access to. This can lead to filling out the form improperly, which can mean receiving less financial aid than they may be eligible for.
  • There are often few foster youth enrolled in any given school. Even if they attend a workshop on completing the FAFSA, it may not be tailored to the specific needs of a foster youth.
  • There are specific considerations for foster youth that may change the amount of financial assistance they receive.

For example, the FAFSA asks students if they plan to live on-campus or off-campus during the school year. If a student who has been in the foster care system plans to live with a foster parent, a relative caregiver, or a legal guardian, they should select “off campus.”

For the purposes of this question, a foster parent, a relative caregiver, or a legal guardian would not qualify as a parent, and selecting “With a parent” on this question when they’ll be living with someone else, such as a foster parent, could mean potentially losing out financial aid to cover their living expenses.

What does it mean when a foster youth is eligible for “independent status” on the FAFSA?

Being eligible for “independent status” on the FAFSA indicates that a student does not need to provide any information about parents on the application, including income details, and this may increase the financial aid amount that a student receives. For this question, “parents” include biological, adoptive, foster parents or legal guardians.

The first step in determining whether a student qualifies for “independent status” is answering the following two questions:

  • “At any time since you turned age 13, were both your parents deceased, were you in foster care, or were you a dependent or ward of the court?”
  • “Does someone other than your parent or stepparent have legal guardianship of you, as determined by a court in your state of residence?”

If the student answers yes to any part of either of the two questions, they likely qualify for “independent status.”

But confirming eligibility is tricky, as it depends on a few details, such as the age the student was considered “a ward of the court” and whether their parents retained legal custody.

Raucher provided an example. “Let’s say they were removed from the home of their parent and went to live with their aunt. What their actual legal status was is not necessarily going to be obvious to the student. Were they in foster care? Was it a guardianship? Was it some kind of probate situation? They don’t necessarily know.”

A resource for determining eligibility is California’s Office of the Foster Care Ombudsman. Students can call this office and get access to specific details regarding their foster care case. This is also the office that can provide a foster youth verification letter.

What is a foster youth verification letter, and when is it needed?

This letter confirms if and when the student was in the foster care system.

Foster youth advocates recommend that students keep a copy of this letter for easy access when it is needed. It may be requested whenever a student applies for services specific to foster youth, such as the “Independent Status” on the FAFSA. A student’s college may also request this letter to verify eligibility for foster-specific services such as priority registration for on-campus housing and course enrollment.

To get a copy, current foster youth can contact their county social worker or their Independent Living Program, which is a housing program specifically for foster youth. Former foster youth can get a copy by contacting the state’s Foster Care Ombudsman’s
Office.

Is there additional financial aid support for foster youth?

The California Chafee Grant for Foster Youth, often referred to as the Chafee Grant, provides up to $5,000 for eligible foster youth. Students must fill out an application specifically for this grant, which is entirely separate and in addition to the FAFSA.

There is both an age and a term limit to this grant. Eligibility for a grant ends at age 26, and it is only available for a maximum of five years. If a student is awarded their first Chafee Grant at age 25, for example, they will lose eligibility once they turn 26 years old.

Raucher said it’s important that foster youth update their WebGrants for Students account to monitor their state-awarded financial aid and to show which school they ultimately enrolled in. If they do not update their account, they may not receive their Chafee Grant.

After updating their WebGrants for Students account, students should also directly contact the California Student Aid Commission and let them know which school they enrolled in. This will ensure that California’s financial aid office is fully aware of which school the student is attending so there is no delay in financial aid deposits.

How will upcoming FAFSA changes affect foster youth?

The federal Department of Education is in the middle of updating the FAFSA process, and this includes updating the actual application form that students submit every year.

The new FAFSA changes will go into effect for the 2024-25 academic year, and it’s expected that the new FAFSA form will be released later this year.

To learn what the FAFSA changes will mean for students affected by the foster care system, check for an updated financial aid guide for California foster youth from the John Burton organization. According to Raucher, a version updated with new FAFSA information will likely be available early next year, once the federal Department of Education has finalized the new FAFSA form. The current guide is at this link.

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