Just wanted to add that timing really matters here! The FAFSA uses a "snapshot" of assets on the day you file, so even if your friend's son had $10K in January but spent $8K on legitimate college expenses by March and then files in March, only the remaining $2K would count. Also, don't forget about sibling assets if there are other kids in the family - each student's assets are assessed separately at that 20% rate. We learned this the hard way when our twins both had graduation money sitting in their accounts. The silver lining is that once they start college and use that money for tuition/expenses, it won't be there for subsequent FAFSA renewals!

One thing that hasn't been mentioned yet is the Student Aid Index (SAI) protection allowance changes. With the 2024-25 FAFSA updates, they eliminated the student income protection allowance but kept the harsh 20% assessment rate on student assets. This makes having money in the student's name even more painful than before! Your friend should also know that if her son receives any scholarships that exceed tuition/fees/books, that "excess" scholarship money could be considered taxable income AND might count as student income on next year's FAFSA. It's like a double whammy. The whole system really does seem designed to discourage kids from saving, which sends such a backwards message about financial responsibility. If they do move the money to parent accounts, make sure it's done as a legitimate transfer for educational purposes, not as a "gift" which could have other tax implications if it's over certain thresholds.

I'm just starting to research college funding options for my own family and this entire discussion has been incredibly enlightening! The level of practical, real-world advice here is exactly what I needed to see. One thing that really stands out to me is how important the coordination and communication aspect seems to be. It sounds like the actual loan application process is fairly straightforward once you understand the rules, but managing the relationship dynamics and logistics with an ex-spouse adds a whole other layer of complexity. @Jessica Nguyen - I'm so glad you got clarity from your financial aid office! Your follow-up posts really helped show how this can work in practice. @Jacob Smithson and @Noah Irving - the coordination document and same-day application strategies you both mentioned seem brilliant for avoiding the kind of disasters that @Alexander Evans experienced. For anyone else reading this who might be in a similar situation, it seems like the key takeaways are: 1. Both divorced parents CAN apply for separate Parent PLUS loans 2. Coordinate timing and amounts beforehand 3. Get everything in writing 4. Work directly with your school's financial aid office 5. Remember each parent is individually responsible for their loan This thread is a perfect example of how valuable shared experiences can be for navigating these complex financial aid situations. Thank you all for being so generous with your knowledge!

This has been such an incredibly valuable thread to read through! I'm currently facing a similar situation with my ex-spouse and our son's college expenses, and honestly, I was feeling pretty overwhelmed before finding this discussion. What really strikes me is how the practical coordination seems to be just as important as understanding the loan mechanics themselves. The stories shared here - both the successes like @Jacob Smithson and @Noah Irving described, and the cautionary tale from @Alexander Evans - really highlight why communication and documentation are so critical. I'm particularly interested in the coordination document approach that several people have mentioned. It seems like having everything spelled out in writing beforehand could save so much stress and potential conflict down the road. @Jacob Smithson, if you're still willing to share that template, I'd be incredibly grateful! One question I haven't seen addressed yet: has anyone dealt with this when there are significant income differences between the divorced parents? I'm wondering if there are any strategies for fairly dividing the loan amounts when one parent earns considerably more than the other, beyond just splitting based on raw ability to qualify for credit. Thank you all for sharing your real experiences - it's made what seemed like an impossible situation feel much more manageable!

I'm dealing with this exact same issue right now! Been stuck on that confirmation page for 2 days with the same "unknown error" message. After reading through everyone's experiences here, it's such a relief to know I'm not alone and that there are actual solutions that work. The birthdate mismatch seems to be the most common culprit based on what everyone's shared. I'm going to contact my daughter immediately to double-check what she entered for my birthdate - mine has numbers that could easily be transposed. Thank you all for sharing your troubleshooting steps and solutions! This thread is incredibly helpful for those of us stuck in FAFSA parent portal hell. Will definitely come back to update if I get it resolved!

I'm experiencing this exact same issue and so relieved to find this thread! I've been stuck on that "confirm your information" page for 6 days now with the same "unknown error" message, and I was starting to panic about missing the deadline. After reading through everyone's experiences, it's clear the birthdate mismatch is the most common cause. I'm going to call my son right away to verify what he entered - my birthday is in December and I know people sometimes mix up 12/15 vs 12/05. Thank you all for sharing your solutions, especially those who came back with updates! This gives me so much hope that there's an actual fix instead of just endlessly refreshing the page. Will definitely report back once I (hopefully) get this resolved!

UPDATE: You all have been so helpful! I took several of your suggestions and finally have some progress to report. I downloaded my SAR report and scheduled an in-person meeting with a senior financial aid counselor (not just the front desk). I showed them the report which clearly showed all parent information was complete. The counselor dug deeper and found that the specific error was related to my parents' contribution calculation. Apparently, when my school's system tried to import the SAI score, there was some kind of mismatch with how specific parent asset data was being categorized. The counselor manually reviewed the data in both systems and found that my school's system was incorrectly flagging my mom's retirement account as missing documentation, even though it was properly recorded in the FSA system. The counselor submitted an override request, and my Pell Grant has been provisionally restored while they fix the technical issue on their end! I'm still going to follow up daily until everything is 100% confirmed, but this is such a relief. Thank you to everyone who shared advice - having that SAR report and speaking to a senior counselor in person made all the difference!

That's such great news! I'm so glad you got it resolved. Your update gives me hope for my own similar situation. I've been dealing with a "parent tax information incomplete" error for weeks even though FSA shows everything as processed correctly. I'm definitely going to follow your approach - get my SAR report and schedule an in-person meeting with a senior counselor instead of just calling the general number. Thanks for taking the time to update us on what worked!

As a newcomer to this community, I can't express how timely and helpful this entire discussion has been! I'm currently working through my FAFSA for my daughter's college applications, and we had the exact same experience - we received Medicaid benefits during part of 2023 under the COVID continuous enrollment policy, and when I answered "yes" to the federal benefits question, the asset questions completely disappeared. Like everyone else here, my immediate reaction was panic. I thought I had somehow broken the system or misunderstood the question. It's such a relief to read through all these similar experiences and see that this is actually how the new FAFSA is designed to work with the Simplified Needs Test. The key insight from @Hunter Edmunds about the contributing parent's individual income versus household income for SNT qualification is particularly valuable - that detail isn't explained anywhere in the FAFSA interface itself. And the broader point that several people have made about answering honestly regarding benefits received in 2023, regardless of the underlying circumstances, really helps clarify the right approach. This thread is a perfect example of why online communities like this are so essential for navigating complex processes. The official FAFSA guidance doesn't adequately explain why certain questions get skipped, leaving families to wonder if they've made errors. Having real people share their experiences and official confirmations makes all the difference. Thank you to everyone who contributed to this discussion - you've probably saved countless families from unnecessary stress and potentially incorrect submissions!

As a newcomer to this community, I want to add my heartfelt thanks to everyone who has shared their experiences in this thread! I'm currently navigating the FAFSA process for my son's college applications, and we found ourselves in the exact same situation - we received WIC and Medicaid benefits during 2023 due to extended COVID eligibility policies, even though our income would normally disqualify us. When I answered "yes" to the federal benefits question and watched all the asset questions completely disappear, I was convinced I had somehow broken the system. The relief I felt reading through everyone's nearly identical experiences cannot be overstated! What's been most valuable to me is seeing the pattern emerge across so many families: pandemic-era benefits → honest "yes" answer → missing asset questions → initial panic → eventual confirmation that this is correct. It really demonstrates how the new FAFSA system was designed to handle the unique circumstances that many families faced during 2023. The official FSA confirmation that @Hunter Edmunds shared about the Simplified Needs Test and contributing parent income thresholds was the final piece I needed to feel confident about submitting. It's clear that the system is working as intended, even if it feels completely different from what we expected based on previous years. This community has provided exactly the kind of real-world guidance that the official FAFSA documentation lacks. Thank you to everyone who took the time to share their experiences and especially to those who went the extra mile to get official clarification!