Make sure the child meets the U.S. Government standards for independence. The child must be married, a veteran of the armed services, receive less than half of their support from a parent or have a dependent. In other words, the child must be mostly self-sufficient. Read the Student Loan Network Web site for more details.
Remove your child from your IRS tax forms as a dependent. You may not claim the child for tax benefits. The child should start completing their own tax return based on their income. This helps to establish independent status when done a year prior to enrollment.
Emancipate your child, if he or she is under 18 years old. Obtain a court order declaring that your child is independent. It is prudent for parents to contact an attorney to ensure all the proper measures are taken before doing this, since the process is similar to a divorce. Otherwise, the Free Application for Federal Student Aid (FAFSA) will require parental involvement. The expected family contribution can decrease any aid amounts granted.