As a newcomer to both this community and the college financial aid process, I want to express my sincere appreciation for this incredibly comprehensive discussion! My son will be starting college in fall 2025, and his grandparents have been discussing ways to help with his education expenses. This thread has been absolutely invaluable in helping me understand the new FAFSA Simplification Act rules and how they've changed the landscape for families like ours. The key takeaways I'm gathering are: 1) Direct grandparent payments to schools no longer negatively impact federal aid eligibility, 2) Timing is crucial - wait until all aid packages are finalized, 3) CSS Profile schools may have different considerations, and 4) Always have payments go directly to the institution rather than through the student. I'm also taking note of the 529 plan suggestion as a potential long-term strategy. One aspect I'm curious about - for families where grandparents live in different states, are there any state-specific considerations or tax implications we should be aware of when they make direct payments to out-of-state colleges? I want to make sure we're covering all our bases as we plan this out. Thank you all for creating such a supportive and informative environment for families navigating this complex process!

As a newcomer to this community, I'm incredibly grateful for this detailed discussion! My daughter will also be starting college in fall 2025, and her grandparents have been asking about contributing to her education. This thread has cleared up so much confusion I had about the FAFSA Simplification Act changes. It's reassuring to know that direct payments to schools won't hurt federal aid eligibility anymore. I'm taking careful notes on the timing strategy - waiting until all aid packages are finalized before any payments are made seems like the golden rule here. I also appreciate the distinction between FAFSA rules and CSS Profile considerations for private schools. One quick question: if grandparents want to contribute but the total amount would exceed the annual gift tax limit, is it better to have them spread contributions across multiple family members (like contributing to both my daughter and my son who will start college the following year), or stick with one beneficiary and handle the gift tax implications? Thanks for such a welcoming and informative community!

As someone who just went through this process with my twin daughters, I can definitely confirm what everyone else is saying - the order doesn't matter at all! I was initially confused too because I thought there might be some strategic advantage to putting the higher or lower earner first, but after speaking with multiple financial aid officers at different schools, they all confirmed that the FAFSA algorithm treats both parents' information equally regardless of the order. We ended up listing my wife as Parent 1 just because she had her tax documents more organized, but it truly could have been either of us. The key thing is just making sure all the information you enter is accurate - SSNs, income figures, asset values, etc. Don't let the confusing terminology stress you out too much - you're definitely on the right track by asking for clarification!

I'm a college junior who went through this same confusion a few years ago! The FAFSA wording is definitely counterintuitive when your parents are married to each other. What helped me understand it was realizing that the form is essentially asking "Who is the primary contact parent?" and "Who is their spouse?" rather than trying to rank your parents in importance. I ended up choosing whichever parent had their Social Security card handy at the time (my dad), and listed my mom as the spouse. Three years later, I can confirm it made zero difference in my aid calculations. The system just needs to know both parents' information and doesn't care about the order. You're definitely not overthinking it - the terminology really is unnecessarily confusing for traditional two-parent households!

I'm so sorry for your loss, Yara. I can't imagine how difficult this must be while you're also trying to navigate these complex financial aid processes. Based on what everyone has shared, it sounds like you have a clear path forward, but I wanted to add one more resource that might help: many colleges have emergency financial aid funds specifically for students whose families have experienced unexpected hardship like this. When you contact the financial aid offices for the professional judgment reviews, ask if they have any emergency grants or hardship funds your son might qualify for while you're waiting for the FAFSA adjustments to be processed. These funds can sometimes provide immediate relief for tuition, housing, or other expenses. Also, don't forget to check if your husband had any life insurance benefits through his employer that might include educational benefits for dependents - some policies have provisions specifically for college expenses that families don't always know about. You're handling this incredibly well given the circumstances.

I'm so sorry for your loss, Yara. This thread has been incredibly helpful - I'm saving it because my family might face a similar situation with my dad's health issues. One thing I wanted to add that I learned from a financial aid workshop: when you're gathering documentation for the professional judgment review, make sure to include any expenses that have changed too, not just income. For example, if you had to take on new costs like daycare, transportation, or medical bills, or if you lost benefits like health insurance coverage, include documentation of those changes as well. Schools can factor in both decreased income AND increased expenses when they recalculate your aid eligibility. Also, some schools will expedite the review process if you explain that you're facing immediate financial hardship, so don't hesitate to emphasize the urgency of your situation. You're being so strong through all of this.

This thread is such a lifesaver! I've been pulling my hair out over this exact issue for the past two days. The FAFSA interface is so confusing - it's like they designed it to be as unclear as possible. I'm a first-generation college student and my parents have never dealt with this before, so we had no idea what to do when the system kept asking for tax info we don't have. Reading through everyone's solutions here gives me hope that I can actually get this done. Going to try the "Will not file" option with my W-2 info tonight. Fingers crossed!

As someone who works in financial aid, I want to emphasize something important that hasn't been mentioned yet: make sure you're consistent with whatever option you choose! If you select "Will not file," don't accidentally submit a tax return later without updating your FAFSA. This can trigger verification issues. Also, keep copies of all the W-2s and income documents you use for your estimates - you'll likely need them if your school selects you for verification. The key is being accurate with whatever information you do have, even if you don't have a completed tax return.

I went through this exact situation two years ago when my son inherited money from his grandfather's Roth IRA. The key thing to remember is that the FAFSA timing matters a lot here. Since you're filing the 2025-26 FAFSA, you'll be using 2023 tax information for income reporting, so that 2022 distribution won't show up in the income section at all. For the asset reporting, you'll need to include whatever amount your daughter still has from that inheritance as of the day you file the FAFSA. The $14k mentioned in the comments would add about $2,800 to her Student Aid Index, which could reduce her aid eligibility. One strategy that worked for us was using some of the inherited funds for legitimate college expenses before filing - things like a laptop, textbooks, dorm supplies, or even paying the enrollment deposit. This reduced the reportable asset amount while still using the money for its intended purpose. Just make sure to keep all receipts in case you need to document the expenses later. Also, if any of her schools require the CSS Profile, double-check their specific requirements since they sometimes have different rules than the FAFSA for inherited assets.

As a financial aid advisor, I can confirm the advice given here is mostly accurate. For the 2025-26 FAFSA using 2023 tax data, that 2022 Roth IRA distribution won't appear in the income section. However, I want to emphasize a few key points: 1. Any remaining funds ($14k mentioned) will be assessed as student assets at 20%, potentially reducing aid by about $2,800 2. Using funds for legitimate educational expenses before filing is a valid strategy - this includes tuition deposits, required technology, textbooks, and even reasonable transportation needs 3. Keep detailed records of all purchases in case schools request verification 4. For schools requiring CSS Profile, contact their financial aid offices directly as they may have additional reporting requirements One thing I haven't seen mentioned: if your daughter qualifies for the simplified needs test (family AGI under $60,000 and eligible to file 1040EZ or meeting other criteria), assets aren't counted at all on the FAFSA. This could make the entire asset question moot depending on your family's income situation. The key is being honest and accurate while understanding the rules to make informed decisions about timing your FAFSA filing.