Your FAFSA dependency status as either an independent student or a dependent student is determined by the Free Application for Federal Student Aid (FAFSA application). The difference between the two depends on the level of access that the student in question has to the financial support of their parents. It is very important to fill out the FAFSA and to recognize your dependence status since it decides how the financial assistance is measured and how you will borrow the full amount of direct loans.