Wow, this thread has been incredibly enlightening! I'm just starting the FAFSA process for my daughter and was completely overwhelmed by the asset reporting requirements. The detailed explanations everyone has provided here have been a lifesaver. I'm particularly grateful for the clarification on 529 plans always being parent assets for dependent students - we have about $15,000 saved up and I was worried it would be assessed at the 20% student rate. Learning it's actually assessed at the much lower parent rate (up to 5.64%) is such a relief! The advice about calling banks to ask specifically about UTMA/UGMA designation rather than accepting generic terms like "custodial account" is brilliant. I have a similar situation with a savings account we opened for my daughter when she was 14, and I definitely need to verify the actual legal structure before reporting it. One question for the group - my daughter also has a small investment account (about $2,800) that her grandmother set up for her a few years ago. I believe it's in my daughter's name but I'm not certain about the legal structure. Would this follow the same principles as the bank accounts discussed here, or are there different rules for investment accounts on the FAFSA? Thanks to everyone for sharing such practical, detailed advice. This community has made what seemed like an impossible task feel much more manageable!

@Arjun Kurti - Great question about investment accounts! Investment accounts generally follow the same ownership principles as bank accounts for FAFSA reporting. If the account is legally in your daughter's name (like a UTMA/UGMA investment account), it would be reported as a student asset at the 20% assessment rate. If it's a custodial account where your daughter is the beneficiary but legally owned by the grandmother, it might not need to be reported at all since it wouldn't be considered your daughter's asset. The key is determining the actual legal ownership structure, just like with bank accounts. I'd recommend calling the investment company (or whoever manages the account) and asking specifically: 1. Is this account established under UTMA/UGMA laws? 2. Who is the legal owner of the assets? 3. Who has control over distributions? If your daughter is the legal owner and has (or will have) control over the funds, it's her asset. If the grandmother retains control and your daughter is just the beneficiary, it might not be reportable. Investment accounts can be trickier than bank accounts because there are more types of structures available, but the same principle applies - actual legal ownership determines FAFSA reporting, not just whose name appears on statements. Definitely worth a phone call to get clarity before submitting your FAFSA!

As a newcomer to this community, I'm so grateful to have found this thread! My son's SAI jumped from $6,400 to $13,200 for 2025-2026 despite our financial situation being virtually identical to last year. After reading through everyone's experiences here, I'm now convinced I also fell into the retirement account reporting trap that seems to be affecting countless families. What's both alarming and oddly reassuring is seeing how systematic this issue appears to be. When this many families make the exact same mistake on identical questions, it's undeniable proof of a major form design flaw rather than user error. The way the new FAFSA disguised retirement account exclusions within that confusing "investments" terminology has clearly cost thousands of families significant aid eligibility. I'm going to follow the correction roadmap everyone has outlined: document everything meticulously, wait for processing to complete (currently at "submitted" status for 7 days), then submit corrections once fully processed. The 3-7 business day correction timeline that others have shared gives me hope we can resolve this before critical aid offer deadlines. Beyond fixing my own situation, I'm absolutely planning to file a formal complaint with the Department of Education about this widespread form design failure. With this many documented cases showing identical systematic problems, we need to demand accountability and ensure future families don't face this financial aid nightmare. Thank you all for creating such an incredibly supportive and informative community during this stressful process. This thread has provided more concrete solutions and reassurance than weeks of trying to reach federal support channels!

As a newcomer to this community, I'm both devastated and relieved to find this thread! My daughter's SAI skyrocketed from $4,800 to $10,400 for 2025-2026 despite our income actually decreasing by about $3,000 this year due to my husband's reduced hours. Reading through everyone's experiences has been incredibly eye-opening - I was convinced there had to be some kind of system error when I first saw that more-than-doubled number. Like virtually everyone else here, I'm now certain I accidentally included our retirement accounts as assets because of that misleading "investments" language on the new form. Looking back at last year's FAFSA, the retirement exclusions were crystal clear, but this year's version buried that critical information in confusing terminology that led so many of us astray. What's most striking is the sheer scale of this systematic issue - when dozens of families in a single thread make identical reporting errors on the same questions, it's irrefutable evidence of a major form design failure by the Department of Education, not individual user mistakes. This level of widespread confusion is completely unacceptable when families are losing thousands in potential aid eligibility. I'm planning to follow the correction process everyone has outlined: document everything thoroughly, wait for processing to complete (currently showing "submitted" for 4 days), then submit corrections once it's fully processed. The 3-7 business day timeline for corrections that others have shared is really helpful for planning ahead of aid offer deadlines. Beyond resolving my own family's situation, I'm definitely filing a formal complaint with the Department of Education about this widespread form design disaster. When this many families face identical aid losses due to the same misleading questions, it demands systemic accountability and immediate fixes to prevent future applicants from experiencing this nightmare. Thank you all for sharing your experiences and creating such a supportive community during this incredibly stressful time. This thread has provided more actionable solutions and reassurance than weeks of failed attempts to reach federal support. It's both heartbreaking and comforting to know we're not alone in this battle!

I'm completely new to this community and just stumbled across this thread while researching the exact same TAP vs FAFSA confusion! As someone who's about to start applications with unmarried parents, reading through Connor's entire journey from panic to resolution has been incredibly reassuring. What I love most about this thread is how everyone explained the WHY behind the different requirements - understanding that TAP uses older methodology while FAFSA updated their rules makes what seemed like a contradictory mess actually make perfect sense. The documentation tips from @Ava Johnson are so valuable, and Connor's follow-up about potentially getting higher TAP aid with one parent's income is encouraging news I never would have found elsewhere. For other newcomers feeling overwhelmed by these financial aid inconsistencies, this thread proves there are always clear answers when you have a supportive community willing to share real experiences. Thanks to everyone who contributed - you've turned what felt like an impossible puzzle into a completely manageable process!

I'm new to this community and just wanted to add my thanks to everyone who made this thread so comprehensive! I'm starting my FAFSA and TAP applications in a few weeks and was already stressed about the unmarried parents situation, but reading through Connor's full journey and everyone's detailed responses has completely transformed my anxiety into confidence. What really helped me was understanding that this isn't a mistake or oversight - TAP and FAFSA just use different methodologies on purpose. The "parent you lived with most" rule for TAP makes perfect sense once you know that state programs haven't updated to match federal rules yet. I'm definitely going to follow @Ava Johnson's advice about gathering documentation proactively, and Connor's update about potentially getting higher TAP aid with one parent's income is such encouraging news! It's amazing how what initially seemed like a frustrating inconsistency might actually work in students' favor. For any other newcomers feeling overwhelmed by these financial aid discrepancies, this thread is proof that even the most confusing situations have clear solutions when you have access to a community willing to share real experiences. Thank you Connor for asking the question we all needed answered and for following up with your counselor's insights!

I'm new to this community but wanted to share what we learned when appealing for medical expenses last year. One thing that really helped our case was organizing our documentation chronologically and creating a one-page executive summary that clearly outlined: 1) Total annual medical expenses, 2) Percentage of our income this represents, 3) Expected duration of treatment, and 4) How this has impacted our college savings. The financial aid officers appreciated having the key information upfront rather than having to dig through dozens of medical bills. Also, when you call the schools, ask specifically to speak with someone who handles professional judgment appeals - not just the general financial aid line. These specialists understand the process better and can give you more detailed guidance about their school's specific requirements. Don't lose hope! We ended up with a significant adjustment that made our son's education possible. The medical expense appeals process exists for exactly these situations, and schools do want to help families facing genuine hardship.

I'm a recent college graduate whose family went through almost the exact same situation! My mom had a chronic autoimmune condition that required expensive biologic treatments throughout my college years. A few additional tips that made a huge difference for us: 1) When you submit your appeal, include a letter from your husband's doctor that specifically states the treatments are "medically necessary and ongoing" - this helps counter any perception that these might be elective expenses. 2) Ask each school about their institutional aid beyond federal programs. Some have specific emergency grants or medical hardship funds that aren't widely advertised. 3) Consider asking for a meeting (phone or in-person) with the financial aid director, not just submitting paperwork. Personal conversations can be more impactful than forms. 4) If one school offers a better adjustment than the other, you can use that as leverage to ask the other school to match or come closer to that offer. The appeals process can feel overwhelming, but it really does work! We got our EFC reduced by almost $9,000 at my school, which covered most of my remaining costs. Your 40% income figure is definitely compelling - that's exactly the kind of exceptional circumstance these appeals are designed for. Wishing your family the best of luck!

As someone who's been helping students navigate financial aid for several years, I want to emphasize something that's been touched on but is really crucial: when you're evaluating those aid packages, don't just look at the total dollar amount - look at the composition. Pay special attention to how much is in grants/scholarships (free money) versus loans (money you have to pay back). Some schools might offer a higher total aid package but with more loans, while another school's smaller package might have more grants. Also, when you're asking schools about aid consistency across four years, specifically ask about their "satisfactory academic progress" requirements. Most aid (both federal and institutional) requires you to maintain a certain GPA and complete a minimum number of credit hours each semester. If you struggle academically and fall below these thresholds, you could lose aid eligibility even if your financial situation hasn't changed. Understanding these academic requirements upfront can help you choose a school where you're likely to succeed and maintain your aid throughout all four years!

As a newcomer to this community and currently going through the college application process myself, this thread has been incredibly valuable! I had the same exact confusion about whether financial aid packages were for all four years or just one year. Reading through everyone's experiences and advice has really opened my eyes to how complex this process is. I'm definitely going to start setting those calendar reminders for FAFSA reapplication dates and begin asking financial aid offices the tough questions about aid consistency and front-loading practices. One thing I'm curious about - has anyone found that certain types of schools (public vs private, large vs small) tend to be more transparent or consistent with their aid practices across all four years? I'm trying to figure out if there are any patterns I should be aware of when comparing my options.