The College Fix

A study released today by the Center for American Progress says the federal financial aid system is biased against children of same sex couples — although sometimes that bias means they receive more financial aid than they should.

To receive federal financial aid (Pell Grants or qualifying for Federal Work Study, for example), college applicants must fill out the FAFSA (Free Application for Federal Student Aid), which assesses family financial need. In part because of the Defense of Marriage Act, there are no clear ways for the child of a gay couple to apply including both parents — who, depending on their state of residency, may not both be legal parents of the applicant.

The way financial need for aid is then determined causes the discrepancies in financial aid for children of gay couples vs. the children of straight couples.

FAFSA accounts for student need in two ways: income and family size. Because of federal restrictions on family definitions, a gay couple could be considered less well-off than they actually are (one income, rather than two); or more well-off (fewer family members on that income). From the study:

In this way, DOMA can result in an understatement or an overstatement of financial need for children pursuing higher education who have two parents of the same sex. If the FAFSA understates financial need, then DOMA will unfairly deliver less aid to children with gay parents than they would have otherwise received if their parents were straight. If FAFSA overestimates financial need, then DOMA will unnecessarily grant more money to children based on their parents’ sexual orientation—and not their family’s actual financial need.

In the latter case, DOMA—a law that intends to deny government benefits based on an individual’s sexual orientation—paradoxically gives a financial advantage to families headed by same-sex couples that is offset by increased costs to the taxpayer.

[Center for American Progress: Unequal Aid]

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