So BM claims this kid for tax purposes? Keep in mind, FAFSA is now expected in October of Senior Year (even though most Colleges apps are due in November of Senior Year). That means BM has to claim the kid Junior and Senior Year, during HS and then throughout College. Not worth it.

Many schools have a separate form on top of the FAFSA, which DOES take into account both parents, and things like home equity.  Pays to investigate that before making the short list of schools.

You still need parents information for 2 years after you are "self supporting"

asks for parents income until your child turns 25, has a child or gets married. DS had a child at 20 and got married at 22. We still have to do DD20s paperwork for her. My husband is on VA comp so only my income counts but we do have to mark down how much he gets in compensation. The kids are mine not his. Our daughters together will have to do the same. DD hasn't lived at home for almost two years. 

Unfortunately they look at the parents' income even if they are not contributing, until the kid ages out (24 I think), gets married, or joins the military. Or has a kid. Sux, but there it is.

LIterally EVERY year in college I had to provide my parents' income. I thought it was ridiculous too. Especially since I was self-supporting, moved out at 18, and didn't see a penny from them for college. But their income disqualified me for a lot of aide and pell grants I otherwise could have used.

I think they need to limit financial aid/loans to amounts that can "reasonably" be repaid.  They should require that the loans that people take on can't be more than X amount of their projected income the first 5 years they graduate... and it should be based on the ACTUAL earnings of graduates of that school's program.. and it should be program specific.  So, if the graduates earn 30K avg the first 5 years.. then perhaps they say.. you can't borrow more than 20% of the avg 5 year... 30K for that program.  If it is a program that has graduates who make 45K/yr avg then you could borrow 45K etc...

This would be a start at preventing people from running up their loans because there would be a natural limit placed upon them.. they may need to work to make up the difference.. or perhaps some schools will need to learn to offer a more reasonably priced curriculum?  It also might discourage people from spending a gazillion dollars in loans in areas of study that don't have much opportunity for earnings.  I mean, sure.. go ahead and go to college for sculpting... but be prepared to pay your way.. because you are going to have a hard time repaying that loan on barista salary.

They make it easy for families/kids to obligate themselves to loans.. when the area of study isn't going to net them any kind of decent salary.. the kids don't understand what it will mean to have that pmt obligation.. it's just "free" money at the time to them... a future obligation.

In a way, higher education has kind of gotten like medical expenses.  Because we have insurance.. they can charge more right?  Because kids can get loans.. schools aren't incentivized to keep costs affordable for their students.  They add fancy student commons.. gyms... etc.. to lure kids and their parents into paying inflated tuition.. only to be taught by low cost graduate assistants...  Perhaps a lot more kids would be better off entering the workforce.. getting a skill like electrician.. HVAC.. or maybe get their education while working.. like my YSD is doing.. 2-3 classes a semester.. paid for in full by her employer.  It will take her 2x as long to get a degree.. but she is earning money and gaining work experience.  Shoot, she earned 50K last year between her 2 jobs... and also got free tuition through her employer.. that's a lot better than us taking on tens of thousands in loans!