This thread has been incredibly helpful as a parent new to the college financial aid process! My daughter just received her aid package and there's a $5,500 Direct Subsidized Loan that we don't need since her merit scholarships cover everything. I was initially planning to just ignore it, but after reading everyone's experiences with account holds and registration issues, I'm definitely going to be proactive about declining it. The insight from the financial aid counselor and bursar's office employee really helped me understand why schools require formal declination - it makes sense that their systems calculate balances based on "offered" aid status. I'm going to call our school's financial aid office this week to get their specific declination form and ask for email confirmation once it's processed. Thanks especially to those who shared the painful lessons learned from ignoring offered loans - those cautionary tales are exactly what us newcomers need to hear! Better to spend 15 minutes on a phone call now than deal with weeks of headaches during registration time.

As someone who just went through this process with my twin daughters, I can't stress enough how important it is to formally decline! We had scholarships covering both girls' expenses, but I made the mistake of ignoring the offered loans for one daughter while properly declining for the other. Guess which one had a registration hold placed on her account two weeks before classes started? The financial aid office told me their system flagged her account as having "unresolved aid" even though she never signed any loan documents. It took multiple calls and a trip to campus to sort it out. What really surprised me was how different the declination process was between their two schools - one had a simple online form, the other required a signed paper form submitted in person or by mail. So definitely call ahead to understand your school's specific requirements. Pro tip: If you do decide to accept a partial amount for emergencies as some suggested, make sure you understand the minimum disbursement amounts. Some schools won't process loans under $500, so accepting a tiny "just in case" amount might not even be possible.

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.

As someone completely new to the FAFSA process, this entire discussion has been incredibly eye-opening! I had no idea about the FAFSA Simplification Act and the direct IRS data sharing - honestly, I was dreading having to manually enter all our tax information based on what I'd heard from other parents. It's such a relief to learn that they've streamlined this process! I do have a question that I haven't seen fully addressed - what happens if you're self-employed or have a more complex tax situation with multiple income sources, rental properties, etc.? Does the direct IRS data sharing still work smoothly, or are there additional complications for people who don't have straightforward W-2 employment? My spouse and I both have some freelance income along with our regular jobs, and I want to make sure we're prepared for any potential hiccups when we start this process next year. Also, thank you to everyone who's shared their experiences here - it's so helpful to hear real-world feedback about how this new system actually works in practice!

As a newcomer to this community and someone just starting to navigate the FAFSA process for the first time, I can't thank everyone enough for sharing their experiences with these new changes! Reading through this thread has been incredibly reassuring - I was honestly overwhelmed at the thought of tackling the FAFSA based on all the horror stories I'd heard from other parents about verification issues and manual data entry errors. The direct IRS data sharing really does sound like a game-changer. I'm curious though - for those who have completed the new process, did you encounter any issues with the FSA ID setup or linking process? I've heard that's been a common stumbling block, and I want to make sure my daughter and I get that part right from the start. Also, is there a recommended order for setting up the FSA IDs - should the student create theirs first, or does it matter? Thanks again to everyone who's contributed to this discussion - it's been incredibly helpful for those of us just beginning this journey!

This thread has been absolutely amazing! As someone who just found out I'm eligible for a Pell Grant for the first time, I had the exact same question about what happens to leftover money. I was honestly worried the school would just keep it or that I'd somehow lose it if I didn't use every penny for tuition. Reading through everyone's experiences has been so educational and reassuring. The fact that schools are legally required to refund credit balances within 14 days is huge - I had no idea that was a federal requirement. I'm definitely going to set up direct deposit right away and make sure I understand my school's specific disbursement timeline. The warnings about third-party "fast refund" services are really valuable too - I probably would have been tempted by those during the stress of starting college. And the tip about checking for account holds is brilliant - I never would have thought about a small library fine or parking ticket potentially blocking my refund. I'm planning to create a simple tracking system for my refund money based on the suggestions here, and I'll definitely be more proactive about contacting my financial aid office with questions. This community is such an incredible resource for navigating all the confusing parts of financial aid. Thank you everyone for sharing your knowledge and experiences - it's made this whole process feel so much less overwhelming!

This thread has been incredibly informative! As another first-time Pell Grant recipient, I was really stressed about this exact situation. I'm getting about $3,200 in Pell Grant funds but my tuition is only around $2,800, so I was worried about what would happen to that extra $400. Reading through everyone's experiences has been so reassuring - especially learning that the refund process is actually federally mandated and not just up to the school's discretion. I had no idea about the 14-day requirement or that schools could face penalties for delays. One thing I'm curious about - has anyone had experience with how the refund process works if you're taking classes at multiple campuses or through different programs at the same school? I'm taking most of my classes at the main campus but one online course through their continuing education division, and I'm wondering if that complicates the disbursement at all. Also, thanks for all the practical tips about setting up direct deposit and checking for account holds. I'm definitely going to call my financial aid office this week to make sure everything is set up correctly. This community is such a lifesaver for navigating all these financial aid mysteries!

As someone new to the grad school funding world, I've been doing a ton of research lately and wanted to add a few things that might help! First, don't forget about state-specific graduate aid programs - many states have need-based grants for graduate students that aren't well-publicized. Also, if you're open to it, some graduate programs offer reduced tuition rates in exchange for research assistance, which is different from traditional TA positions. Another thing I learned is that some professional associations in public policy offer scholarships specifically for graduate students - the amounts vary but every bit helps! Finally, consider looking into graduate programs at institutions that participate in tuition exchange programs if you're willing to study out of state - sometimes the savings can be significant even without traditional financial aid.

As someone just starting to navigate grad school funding myself, I wanted to share what I've discovered about income-driven repayment that might help your situation! Even though your $24,700 income won't qualify you for grants as a grad student, it could actually work in your favor for loan repayment later. With income-driven plans like IBR or PAYE, your monthly payments would be calculated based on your current low income, potentially making them very manageable (sometimes even $0 if your income stays low enough). Also, I recently learned that some graduate programs have "hidden" funding opportunities that aren't advertised - things like paid positions helping with faculty research, writing center tutoring, or administrative work within the department. These aren't always posted publicly, so it's worth asking directly during interviews or contacting current students in programs you're interested in. Your nonprofit experience might actually be a selling point for public policy programs looking for students with real-world experience!