Just to bring this full circle - the bottom line is that VA education benefits don't count against your FAFSA eligibility. Your daughter could potentially receive full federal financial aid (including Pell Grants if your income qualifies) PLUS her VA benefits. Just be transparent with schools about all sources of funding to avoid complications later. And congratulations to your daughter on her college journey!

I'm so glad you found helpful answers here! As someone who works with veteran families navigating financial aid, I just want to emphasize one more important point: make sure your daughter applies for her Certificate of Eligibility (COE) through the VA well before her first semester starts. Even though the financial aid processes are separate, having that COE ready helps streamline everything with the school's veteran services office. Also, many schools have dedicated veteran coordinators who can be incredibly helpful - they often know the ins and outs of how VA benefits work with other aid better than general financial aid staff. Best of luck to your daughter!

As a parent who's been researching this extensively, I want to echo what Tami shared about the importance of understanding the new FAFSA rules. I've been diving deep into this topic and found that many online resources still reference the old formula where 529 assets were assessed at 5.64%. One additional consideration I haven't seen mentioned yet: if your daughter qualifies for work-study, that income is excluded from the FAFSA calculation, unlike 529 withdrawals which count as student income. So it might be worth factoring in potential work-study earnings when deciding how much 529 money to use each year. Also, for families in similar situations, I'd suggest creating a 4-year cash flow projection that includes estimated aid packages, loan limits, and 529 withdrawal timing. It's tedious but helps visualize the true cost impact of different strategies. The financial aid landscape has gotten so complex that what seems logical (use savings first) often isn't optimal anymore.

This thread has been incredibly enlightening! As a newcomer to this community, I'm amazed by the depth of knowledge everyone has shared about 529 strategies under the new FAFSA rules. I'm in a similar situation with my son starting college in fall 2025, and honestly, I was completely unaware that the formula had changed so dramatically this year. Reading through everyone's experiences, especially Tami's cautionary tale about front-loading and losing $6,000 in aid, has been a real wake-up call. I was actually leaning toward using most of our 529 funds upfront based on older advice I'd found online. Now I realize I need to completely rethink our approach. A few questions for the group: Has anyone here successfully used the Federal Student Aid phone service (or that Claimyr service QuantumQueen mentioned) to get official confirmation on how the 2-year lookback for 529 withdrawals works? And for those who've implemented the "use less early, more later" strategy - are you finding that schools' aid offices are helpful in modeling different scenarios? Thanks to everyone who's shared their real experiences here. It's saving families like mine from making costly mistakes!

my sister had twins last year and she said one got more aid than the other even with identical parent info. depends on what schools they apply to and their own merit scholarships etc

Just wanted to add another perspective as someone currently going through this process with twins this year! One thing I discovered is that it's helpful to create a simple spreadsheet with all your financial information before starting either application. This way, when you're completing the second parent portion, you can just copy the exact same numbers and avoid any typos that might trigger verification issues. Also, make sure both twins use consistent naming conventions when they list you as their contributor - use your full legal name exactly as it appears on your tax return for both applications. This small detail can prevent headaches later!

One additional option to consider: If your son will be applying to selective private colleges, many of them also require the CSS Profile in addition to the FAFSA. While the CSS Profile also counts stepparent income, it allows for more nuanced financial reporting and some schools using it offer more flexibility in how they evaluate blended family situations. The CSS Profile costs money to submit (unlike the FAFSA), but fee waivers are available based on family income. If any schools on your son's list require the CSS Profile, this might actually work in your favor since you can explain the family dynamic in more detail than the FAFSA allows.

Thank you all SO much for your helpful responses! I'm disappointed that we do have to include my husband's income, but at least now I understand the rules correctly and won't make mistakes on the application. I really appreciate the tips about reaching out to financial aid offices for professional judgment reviews and looking into scholarships specifically for students who have lost a parent. I had no idea those existed! One last question - if my husband and I have a joint savings account that we both contribute to, is that considered a parent asset that needs to be reported? Or only my portion of it?

As a newcomer to this community, I just wanted to say thank you to everyone who has shared their experiences here! I'm in a very similar situation to Javier - my parents are divorced and both want to help with college costs, but I've been getting conflicting information about whether they can both apply for Parent PLUS loans separately. Reading through all these responses has been incredibly helpful, especially hearing from people who actually went through this process successfully. The breakdown of specific dollar amounts, timeline expectations, and practical tips about FSA IDs and loan servicers is exactly what I needed to understand. I'm definitely going to bookmark this thread to reference as my family works through our own PLUS loan applications. It's reassuring to know that this type of situation is more common than I thought and that there are clear steps to follow. Thanks again to everyone who took the time to share their knowledge and experiences!

Welcome to the community, and I'm so glad this thread has been helpful for your situation too! It really shows how common this confusion is - I think the financial aid system could do a much better job of clearly explaining these options to families. One thing I've learned from reading everyone's experiences here is that having a clear communication plan between parents is just as important as understanding the technical requirements. It sounds like families who took the time to sit down together and map out exactly who would apply for what amount, when, and how they'd coordinate with the school had the smoothest experience. For anyone else reading this thread in the future, I'd also recommend printing out or saving some of these detailed responses - especially the ones from the financial aid counselor and people who work in the industry. Having that reference material handy when you're actually filling out applications could be really valuable. Thanks again to everyone who shared their real-world experiences. This kind of peer support makes navigating these complex processes so much less stressful!