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How Extended Foster Care Payments Affect Financial Aid

On July 3, 2013, the DOE provided a “Dear Colleague letter” that describes the treatment of extended foster care payments that are made directly to the student when determining Title IV federal student aid eligibility.

This determination states:

‘Extended foster care payments paid under the authority of Title IV – Part E of the Social Security Act are excluded from income for purposes of the calculation of a student's Expected Family Contribution (EFC) and thus not reported on the FAFSA.'

To view the complete letter, click on the 'Extended Foster Care Payments Letter' link below.

To gain further insight on this topic, view the blog written by Annie Blackledge by clicking on the link below.


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Fostering Success Michigan is a statewide initiative that aims to increase access and success in higher education and post-college careers for youth with experience in foster care. Learn how you can contribute to building a holistic network that insulates (i.e., strengthens protective factors and reduces risks) the education to career "pipeline." 

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