FAFSA: How do grandparents report contributions without affecting eligibility?

This is actually good news - the 2024-2025 FAFSA simplification removed the reporting requirement for grandparent contributions! Previously, money from grandparents could significantly reduce aid eligibility when reported as student income the following year. Under the new FAFSA, grandparent gifts no longer need to be reported at all. Your parents can give directly to your son or pay the school without affecting his SAI (Student Aid Index, which replaced the old EFC).

The previous reply is correct, but with one important clarification. While grandparent contributions no longer directly impact the FAFSA calculation, the money does still matter if your son deposits large amounts in his bank account BEFORE completing the FAFSA. Student assets are still counted (though at a lower rate than before). Recommendation: Have your parents either: 1) Pay the college directly 2) Wait until after the FAFSA is submitted to give any cash gifts 3) Use a 529 plan in their name (grandparent-owned 529s no longer count against aid eligibility

@perfectlyimperfect Yes, you'll need to report whatever is left in your accounts when you file the FAFSA. The date that matters is the day you submit the application - that's when they take the "snapshot" of your financial situation.

Everybody keeps talking about the FAFSA but don't forget about CSS Profile schools!!! Many private colleges still use the CSS Profile and THEY DO count grandparent support differently. My daughter lost almost $7000 in aid from her dream school because my parents were helping. The CSS Profile asks about expected family support from ALL sources!

Here's a link to schools that use CSS Profile: https://profile.collegeboard.org/profile/ppi/participatingInstitutions.aspx But even with CSS Profile schools, there are smart strategies for grandparent support. The best is usually having grandparents pay the school directly AFTER financial aid is finalized. This way it's not counted as expected support on the front end.

I spent HOURS trying to figure this out last year for my twins. Called the Federal Student Aid hotline 8 times and kept getting disconnected or put on endless holds. Finally used Claimyr (claimyr.com) to get through to an actual human at FSA who confirmed everything said above. The rep explained that grandparent contributions are no longer reportable on the FAFSA but still matter for CSS Profile schools. They have a quick video showing how it works: https://youtu.be/TbC8dZQWYNQ - totally worth it when you're stuck on these complicated questions!

Yes, it worked great for me after wasting days trying to get through. Just to clarify though - you still have to pay for the service, but it was worth it for the peace of mind knowing exactly how to handle our situation.

TERRIBLE ADVICE ABOVE ABOUT 529 PLANS!!!! Grandparent 529s ABSOLUTELY DO still impact financial aid!!! The "simplified" FAFSA is a MESS of contradictions. My son lost THOUSANDS in grants because my parents had a 529 for him. Don't listen to these people who clearly haven't actually gone through the process yet!!!

Thanks everyone for the helpful information! From what I'm gathering: 1. For FAFSA schools: Grandparent contributions won't affect the calculation as long as they either pay the school directly or give money after the FAFSA is submitted 2. For CSS Profile schools: Need to be more careful since they do count expected family contributions from all sources I'll check which of my son's schools use CSS Profile and then talk to my parents about the best timing for their gifts. Definitely want to maximize his aid eligibility!

My parents helped with my daughters college too! What we did was they paid her tuition bill directly to the school after we got all the financial aid stuff settled. The financial aid office told us that was the best way to do it. Worked out great and she still got her full pell grant amount.

As someone new to navigating this whole financial aid process, this thread has been incredibly helpful! I'm in a similar situation where my in-laws want to contribute to my daughter's education, and I was completely confused about how to handle it. Based on what everyone's shared, it sounds like the key is timing - either having them pay the school directly after aid is awarded, or waiting until after the FAFSA is submitted to give any cash gifts. One question I still have - if they set up a 529 plan in their name for my daughter, when would be the best time to do that? Before or after we submit the FAFSA? I want to make sure we don't accidentally mess up her aid eligibility by doing things in the wrong order. Thanks again to everyone who shared their experiences - it's so much easier to understand when real families explain what actually worked for them!

This is such a timely discussion for me! I'm helping my nephew navigate his FAFSA for the first time, and his grandparents (my parents) have been asking the exact same questions. It's reassuring to hear that the new FAFSA rules have simplified things for grandparent contributions. One thing I wanted to add based on our experience - make sure to keep good records of any direct payments to the school. We learned this the hard way when my parents paid my older daughter's tuition directly, but the school's billing system was confusing and we couldn't easily track what came from financial aid vs. family contributions when tax time rolled around. Also, for anyone dealing with multiple grandchildren in college at the same time, it might be worth having the grandparents consult with a financial advisor about the most tax-efficient way to structure their educational gifts. The annual gift tax exclusion and educational expense exemptions can get complicated when you're helping multiple kids. Thanks to everyone who's shared their real-world experiences here - it's so much more helpful than trying to decode the official government websites!

As a newcomer to this community, I'm finding this discussion incredibly valuable! My situation is similar - my parents want to help with my daughter's college costs, and I've been totally overwhelmed trying to figure out the best approach. From reading through everyone's experiences, it sounds like the key takeaways are: 1. FAFSA-only schools: Grandparent contributions no longer hurt aid eligibility 2. CSS Profile schools: Still need to be strategic about timing 3. Direct payments to schools after aid is awarded seems to be the safest approach 4. Keep detailed records for tax purposes One question I haven't seen addressed - does anyone know if there are limits on how much grandparents can pay directly to schools without tax implications? I know there's the annual gift tax exclusion, but I've heard that direct educational payments might be treated differently. Also, for those who've gone through this process, how far in advance did you start planning with the grandparents? My parents are eager to help but I want to make sure we have a solid strategy before my daughter starts applying to schools next year. Thanks to everyone for sharing your real experiences - it's so much more helpful than trying to navigate the official websites alone!

As a newcomer to this community, I'm so grateful for all the detailed information shared here! My parents have been asking about helping with my son's college expenses too, and this thread has cleared up so much confusion. I wanted to share what I learned from calling my son's target schools directly - some of their financial aid offices were surprisingly helpful in explaining their specific policies. One school told me that even though they use CSS Profile, they don't penalize families as heavily for grandparent support as they used to, especially if it's structured as direct tuition payments after aid is awarded. For anyone else just starting this process, I'd recommend making a simple spreadsheet with each school your child is considering, whether they use FAFSA only or CSS Profile, and any specific grandparent contribution policies they mention. It's helped me keep track of which strategies will work best for each school. One thing I'm still figuring out - if grandparents want to help with expenses beyond tuition (like room and board), what's the best timing for those contributions? Should they wait until after each year's FAFSA is submitted, or is there a better approach? Thanks again to everyone for sharing your real experiences - it makes navigating this whole process feel much more manageable!

As someone completely new to the FAFSA process, this entire discussion has been a lifesaver! My mother-in-law keeps asking how she can help with my daughter's college costs without hurting her financial aid, and I had no idea where to even start looking for answers. From everything I've read here, it sounds like the timing and method of grandparent contributions makes all the difference. I'm planning to follow the advice about checking which schools use CSS Profile first, then coordinating with my mother-in-law on the best approach for each school. One quick question for the group - when you say "after the FAFSA is submitted," do you mean after it's submitted for that academic year, or after all four years are complete? I want to make sure I understand the timing correctly since my mother-in-law is thinking about helping throughout all four years of college. Also, has anyone dealt with a situation where grandparents live in a different state? I'm wondering if there are any additional considerations for out-of-state gift tax rules or if everything follows federal guidelines. Thank you all for being so generous with sharing your experiences - this community is exactly what confused parents like me need!

As a newcomer to this community, I'm incredibly grateful for all the detailed information everyone has shared! My parents have been asking about helping with my daughter's college expenses, and this thread has answered so many questions I didn't even know I should be asking. I'm particularly appreciating the practical advice about creating a spreadsheet to track each school's policies and the tip about calling financial aid offices directly. It's reassuring to know that the new FAFSA rules have simplified things for grandparent contributions, though I can see I'll need to be more strategic with CSS Profile schools. One thing I'm curious about - for families where grandparents want to help multiple grandchildren who might be in college at overlapping times, are there any special considerations? My parents have three grandkids who will likely be in college within a few years of each other, and I want to make sure we coordinate properly so everyone maximizes their aid eligibility. Also, I noticed someone mentioned keeping detailed records for tax purposes - does anyone have recommendations for specific documentation we should maintain? I want to make sure we're organized from the start rather than scrambling later. Thank you all for creating such a supportive and informative community. It's making this whole process feel much more manageable knowing there are experienced families willing to share their knowledge!

As a newcomer to this community, I'm so thankful I found this thread! My parents have been wanting to help with my son's college costs, and I've been completely overwhelmed trying to figure out the rules. Reading through everyone's experiences has been incredibly helpful. I'm particularly grateful for the clarification about the 2024-2025 FAFSA changes - I had no idea that grandparent contributions were no longer reportable. That's a huge relief! I'm also taking note of the advice about CSS Profile schools and the importance of timing contributions carefully. One question I haven't seen addressed yet - what happens if grandparents want to help with costs that aren't tuition, like textbooks, supplies, or a laptop? I know direct tuition payments have special tax advantages, but do those other educational expenses get treated differently on the FAFSA or CSS Profile? Also, my parents are retired and on a fixed income, so they're thinking about making smaller contributions over time rather than large lump sums. Would it be better for them to save up and make bigger payments directly to the school, or are smaller regular contributions just as effective? Thanks to everyone for sharing such practical, real-world advice. This community is exactly what stressed parents like me need when trying to navigate this complex process!

As a newcomer to this community, I'm so grateful for all the comprehensive information shared in this thread! My in-laws have been asking about contributing to my daughter's college expenses, and I was completely lost about how to handle it without affecting her financial aid eligibility. The clarification about the 2024-2025 FAFSA changes removing the reporting requirement for grandparent contributions is such a relief - I had been dreading having to turn down their generous offer to help. I'm also taking careful notes about the CSS Profile differences and the importance of timing any cash gifts after FAFSA submission. One scenario I'm curious about - what if grandparents want to help with study abroad costs or summer programs that might not be part of the regular academic year billing? Would those expenses be treated the same way as regular tuition for gift tax purposes, or do they fall into a different category? Also, I noticed several people mentioned consulting financial advisors. For families where grandparents aren't contributing huge amounts (maybe $3,000-5,000 per year), is professional advice still worth the cost, or are the strategies discussed here sufficient for smaller contribution amounts? Thank you all for creating such a supportive environment where families can learn from each other's real experiences. This thread has transformed my anxiety about this process into confidence that we can navigate it successfully!

As a newcomer to this community, this thread has been incredibly enlightening! I'm in a similar boat where my parents want to help with my daughter's college expenses, but I was terrified we'd accidentally mess up her financial aid eligibility. The explanation about the 2024-2025 FAFSA simplification removing grandparent contribution reporting requirements is amazing news - I had no idea about this change! I'm definitely going to check which of her target schools use CSS Profile since that seems to be the main complication now. One thing I'm wondering about - if grandparents set up a 529 plan but then want to also make additional direct payments to the school, is there any limit to combining these approaches? Or any advantage to choosing one method over the other? My parents are financially comfortable but want to structure their help in the most beneficial way possible. Also, I really appreciate everyone sharing their real experiences rather than just pointing to confusing government websites. The practical advice about timing, record-keeping, and coordinating between multiple family members is exactly what I needed to hear. This community is such a valuable resource for navigating these complex financial aid waters!

As a newcomer to this community, I'm so relieved to have found this comprehensive discussion! My elderly parents have been insisting they want to help with my son's college costs, but I've been paralyzed with worry about accidentally sabotaging his financial aid eligibility. The information about the 2024-2025 FAFSA changes is such a game-changer - I had no idea grandparent contributions were no longer reportable! This completely changes our family's approach. I'm definitely going to create that spreadsheet someone mentioned to track which schools use CSS Profile versus FAFSA-only. One question I haven't seen addressed - my parents are in their 80s and sometimes forget details about financial transactions. For families dealing with elderly grandparents who want to help, are there any strategies to ensure contributions are properly coordinated and documented? I want to make sure we don't miss any important timing or reporting requirements because of miscommunication. Also, given their age, they're concerned about what happens to any 529 plan they might set up if something happens to them before my son graduates. Does anyone have experience with succession planning for grandparent-owned educational accounts? Thank you all for sharing such detailed, real-world experiences. This community has turned what felt like an impossible puzzle into a manageable plan!

As a newcomer to this community, your concerns about coordinating with elderly grandparents are so important and often overlooked! I dealt with a similar situation with my 82-year-old father-in-law who wanted to help but sometimes got confused about the timing and amounts. Here are some strategies that worked for us: 1. **Create a simple written plan** - We made a one-page document outlining when and how much he would contribute each year, with specific dates tied to our FAFSA filing schedule. We kept copies and reviewed it together every few months. 2. **Set up automatic reminders** - We used his calendar app to set reminders about optimal timing for contributions, and I would call him a week before any planned payments. 3. **Involve their financial advisor or bank** - His bank helped coordinate the direct payments to the school, which took the burden off him to remember details and ensured proper documentation. For the 529 succession planning question - most 529 plans allow you to name successor owners, so your parents could designate you or your spouse to take over the account if needed. The beneficiary (your son) would remain the same, but control would transfer to someone who can continue managing distributions properly. I'd strongly recommend having your parents meet with their financial advisor or estate attorney to set up these protections now while they're still able to make clear decisions. It gives everyone peace of mind! The documentation aspect is crucial too - we created a shared Google doc that tracks all contributions, dates, and purposes so nothing gets lost or forgotten.