Roth IRA distributions can be tricky on the FAFSA. For the 2025-2026 FAFSA, they're using your 2023 tax information, so that $7,000 distribution will be relevant. The good news is that if you only withdrew your original contributions (not earnings) from your Roth IRA, it won't count as income on the FAFSA. The FAFSA follows tax rules here - qualified Roth IRA distributions aren't taxable income. However, if any portion was earnings and wasn't a qualified distribution, that part would have been reported as income on your 2023 tax return and would therefore be included in your AGI on the FAFSA. The FAFSA doesn't have a specific line for Roth IRA distributions - they're captured through your AGI and other income questions. If your distribution was properly reported on your taxes, it should automatically be accounted for correctly when you enter your tax information. Just make sure you don't count this distribution twice by also reporting it separately as untaxed income, which is a common mistake.

Great explanation from Mei-Ling! Just to add a bit more clarity - since you mentioned this was a $7,000 Roth distribution in 2023, you'll want to check your 2023 Form 1099-R that you should have received from your IRA custodian. This form will show the distribution amount and importantly, the distribution code in box 7. If the code is "J" or "T", it typically means it was a qualified distribution of contributions only, which won't affect your FAFSA. But if you see other codes, some portion might have been taxable. Also, remember that while the distribution itself may not count as income for FAFSA purposes, any remaining balance in your Roth IRA is still considered a parent asset on the FAFSA and will be assessed at the 5.64% rate in the Expected Family Contribution calculation. If you're unsure about how your specific distribution was treated tax-wise, it might be worth consulting with a tax professional, especially since FAFSA accuracy is so important for financial aid eligibility.

UPDATE: We finally got through! Following the advice from several of you, we: 1. Used Claimyr to hold our place in line (thank you for that suggestion!) 2. Called right at 8am ET 3. Made sure my son was available to speak directly to the agent 4. Specifically requested the account verification specialist After about an hour on the phone, they were able to unlock his account. We've already submitted the FAFSA and called his school to let them know it was finally processed. Thank you all for your help - this forum literally saved us thousands in potential lost aid!

This is exactly why I joined this community - stories like yours give me hope that there's actually a way through this mess! I'm dealing with a similar lockout situation with my daughter's account (going on 3 weeks now) and the advice in this thread is gold. Definitely going to try the Claimyr service and the 8am calling strategy. It's absolutely ridiculous that families have to become customer service experts just to access financial aid, but I'm so grateful you shared what actually worked. Bookmarking this entire thread!

As someone new to this community and the college financial aid process, I can't express how valuable this discussion has been! My family is just starting to research colleges for my junior daughter, and honestly, I was terrified about the financial aspect until I found this thread. The real-world examples everyone has shared are incredibly reassuring - especially hearing that actual out-of-pocket costs can be significantly lower than the SAI. @Andre Moreau's experience of paying $28k with a $45k SAI and @Sasha Ivanov's story about the $18k cost at a more expensive school really help illustrate that we shouldn't judge affordability by sticker price alone. I'm taking notes on all the practical advice here: applying to a diverse mix of schools, focusing on gift aid vs. loans, looking into merit scholarships early, and being prepared to appeal if needed. @QuantumQuester's explanation of the demonstrated need calculation was particularly enlightening. For families just starting this journey like mine, this thread is proof that while the process is stressful, there are real strategies and reasons for hope. Thank you to everyone who shared their experiences - you're helping so many of us navigate what initially feels like an impossible situation!

As a newcomer to both this community and the college financial aid world, I just wanted to say thank you to everyone who has shared their experiences in this thread! My son is a high school senior and we just got our FAFSA results back with a $41,000 SAI - I literally had the same panic reaction as the original poster. Reading through all these real examples has been incredibly reassuring. @Andre Moreau, your story about paying $28k with a $45k SAI gives me so much hope! And @Sasha Ivanov, thank you for sharing how the most expensive school actually ended up being the most affordable option - that's exactly the kind of perspective I needed. The practical advice here is invaluable: focusing on gift aid vs loans, applying to a diverse mix of schools, understanding that SAI ≠ actual cost, and being prepared to appeal if necessary. @QuantumQuester's explanation of demonstrated need calculation really helped me understand how this all works. We're now waiting for financial aid packages from 7 schools, and while it's nerve-wracking, I feel so much more prepared thanks to this community. It's amazing how much better you feel when you realize you're not alone and that there are real success stories out there. Thank you all for being so generous with sharing your knowledge and experiences!

As a newcomer to this community and Parent PLUS loans, this thread has been incredibly helpful! My son is starting his junior year and we just got approved for our first Parent PLUS loan after his academic scholarships didn't fully cover the increased tuition costs. Like Jason, I was completely confused about where to find my loan details after approval. Following everyone's advice, I created my own FSA ID (separate from my son's) and logged into studentaid.gov. Found everything under "My Aid" → "Loans" just like Christian mentioned. The interface took some getting used to, but at least I can see all the loan terms now. That 8.05% interest rate combined with the 4.228% origination fee is definitely a shock to the system! I'm already planning to set up those small monthly interest payments during the school year based on GalaxyGuardian's excellent advice. Even $60-80 per month should help prevent that interest capitalization. One thing I'm curious about - for those who have used multiple Parent PLUS loans across different academic years, do you find it better to consolidate them later or keep them separate? My son will likely need loans for his senior year too, so I'm trying to plan ahead for the best long-term strategy. Thanks to everyone who shared their experiences here - this community knowledge is so much more practical than anything I got from the financial aid office!

As someone brand new to Parent PLUS loans, this entire thread has been a lifesaver! My daughter is starting college this fall and we just applied for our first Parent PLUS loan yesterday. I was having the exact same issue as Jason - got the approval letter but had no clue where to actually view the loan details. Thanks to everyone's advice here, I now know I need to create my own FSA ID (not use my daughter's) and log into studentaid.gov to find everything under "My Aid." I had no idea about the 4.228% origination fee being deducted upfront - that's going to completely change how much I need to borrow to actually cover her expenses! The 8.05% interest rate is definitely scary, but the tip about making small monthly payments during school to prevent interest capitalization is brilliant. I'm planning to set up automatic payments of maybe $75-100/month as soon as the loan disburses. One question for the group: I've seen mentions of the Master Promissory Note - is this something I should have already received, or does it come later in the process? I want to make sure I'm not missing any important paperwork. This community has been infinitely more helpful than the financial aid office at my daughter's school. Thank you all for sharing your real-world experiences!

I went through this same situation last year and want to emphasize how important it is to keep good records! Since you mentioned having 60% custody, you're clearly the custodial parent for FAFSA purposes, but some schools do ask for verification especially when it's not obviously one-sided. I actually created a simple spreadsheet tracking overnight stays for the full 12 months before filing - just dates and which parent's house. It ended up being super helpful when the financial aid office had questions. Also, don't stress too much about the exact percentage - as long as it's more than 50% with you, you're good to go. The new FAFSA really did simplify things compared to the old system!

As someone who just went through this process with my daughter, I can confirm everything everyone has said is correct! Since your daughter lives with you 60% of the time, you're definitely the custodial parent for FAFSA purposes. One thing I'd add is to make sure you have your 2023 tax return handy when you start filling it out - the new FAFSA can actually pull a lot of the financial info directly from the IRS now, which makes it much faster than the old version. Also, don't panic if the form seems glitchy at first - there were some technical issues early in the year but they've mostly been resolved. You've got this!