Thanks everyone for the helpful responses. Based on all your advice, since this is definitely a custodial UTMA account, I'll report it as my daughter's asset on the FAFSA. I'm also considering using some of the funds to purchase a laptop for her before filing, since she'll need one for college anyway. This community has been incredibly helpful - navigating financial aid is so confusing!

Just wanted to add one more thing that might help others - if you're dealing with custodial accounts and worried about the FAFSA impact, you might want to consult with a fee-only financial planner who specializes in college planning. They can help you understand strategies like the timing of asset liquidation or even whether it makes sense to transfer custodial assets back to parent ownership in some cases (though there are tax implications). I learned this the hard way after already filing, but it's worth the consultation fee to get personalized advice based on your specific situation and timeline.

i got an error when i tried to do mine and had to call the fafsa ppl. waited TWO HOURS and then got disconnected!!! had to start over the next day. SUCH a pain

Just wanted to chime in as someone who went through this process recently! The 90-day window is accurate, but I'd recommend completing your portion within a week or two of returning from your trip if possible. While the technical deadline is generous, some schools process aid applications in batches, and you don't want to miss an early processing cycle that could affect your son's aid package. Also, since you're traveling for work, you might want to download the myStudentAid app before you leave. Even if you don't plan to complete the form on your phone, having the app can be helpful for checking the status of your invitation or accessing your FSA ID info if needed. Safe travels!

I'm a transfer student who just went through this exact situation last semester! My dad's PLUS loan got denied (credit score around 580 due to business closure during COVID), and I was panicking because I thought it meant I wouldn't be able to afford school. Turns out the additional unsubsidized loan amount was a lifesaver - I got the extra $5,000 since I'm a junior, and like everyone mentioned, the 5.50% interest rate is so much better than what the PLUS loan would have been at 8.05%. One thing I want to add that I haven't seen mentioned - if you're at a community college like Charlotte, some have emergency grant funds specifically for students facing unexpected financial gaps. My CC had a "student success fund" that provided up to $1,500 in emergency aid per semester for situations exactly like this. I only found out about it because my advisor mentioned it during our meeting about the PLUS denial. Definitely worth asking about! Also, consider reaching out to local organizations, churches, or community foundations - sometimes they have small scholarship funds for students in crisis that don't get a lot of applications because people don't know about them. The whole process is stressful but you'll get through it!

I'm currently a junior dealing with a similar situation and wanted to share some additional resources that helped me! After my parent's PLUS denial, I discovered that some employers (including part-time retail jobs) offer tuition assistance programs that many students don't know about. I work at Starbucks and they have a program that covers a portion of tuition for ASU online courses, but other companies like Target, Amazon, and even some local businesses have education benefits. Also, if you're considering taking fewer credits to manage costs, make sure you understand how that affects your financial aid - dropping below full-time can sometimes reduce your aid package. One more tip: some textbook rental companies and campus bookstores offer payment plans for books/supplies, which can free up cash for tuition. The PLUS denial really does end up being better financially with those lower interest rates on the additional unsubsidized loans. You're handling this really well by researching all your options ahead of time!

I'm jumping in as someone who works at a college financial aid office and wanted to add some reassurance from the institutional perspective! We've been seeing a lot of families with similar SAI drops this year, and in almost every case, students are qualifying for more aid than they would have under the old EFC system. The 4,000 point drop you mentioned is actually quite common for families with two students in college. The new SAI formula handles multiple enrollments differently than the old system, and it's generally working in families' favor. We've had several cases where students who barely qualified for any need-based aid last year are now eligible for substantial grant packages. One thing to keep in mind: while federal aid eligibility is directly tied to your SAI, many schools are also revising their institutional aid formulas to be more generous alongside the new system. At our institution, we've increased our need-based grant funding by about 15% this year specifically to take advantage of the new calculations. My advice would be to wait for the actual aid offers before worrying too much. Based on what I'm seeing across our applicant pool, families are generally very pleasantly surprised by their aid packages this year!

As a newcomer to this community, I want to say how incredibly helpful this thread has been! I'm going through the exact same situation with my son - his SAI dropped about 3,800 points this year and I was completely panicking, thinking something was wrong with our FAFSA or that it would somehow hurt his aid eligibility. Reading through everyone's real experiences here has been such a relief. It's clear that the lower SAI numbers are generally working in families' favor, especially for those with multiple kids in college. The insights from @Connor Murphy working at a financial aid office are particularly reassuring - knowing that schools are actually increasing their need-based funding to work with the new system makes me feel so much more optimistic. I think I'll take the advice several people mentioned about scheduling an SAI interpretation meeting with the financial aid offices once we start getting aid packages back. The waiting is definitely stressful, but this thread has given me hope that we might actually be in better shape than last year. Thanks everyone for sharing your experiences - it makes such a difference to hear from real families going through this transition!

When I was in school I had a similar issue with divorced parents. Ended up having to take out more loans than I wanted, but I also applied for like 50 scholarships each year and that helped a lot. Don't forget to look for scholarships specifically for students from divorced families - they exist!

Just want to add that you should also look into your state's financial aid programs! Some states have their own aid formulas that might be more favorable than federal aid, and they sometimes have different rules about parent income. Also, if you end up at a community college for your first two years, many have much more flexible financial aid policies and lower costs overall - could be worth considering if your dad's income is making federal aid difficult to get. You can always transfer to a four-year school later when you have more options at 24.