As someone new to this community, I wanted to chime in because I just went through something very similar with my stepson last year. He inherited about $35,000 from his biological father, and we were completely lost on how to handle it for FAFSA purposes. What I learned (the hard way) is that you absolutely must report it as your son's asset - there's no getting around that. But here's what helped us navigate the situation: we scheduled a consultation with a fee-only financial planner who specializes in college funding strategies. It cost us about $300, but it was worth every penny because they helped us understand not just the FAFSA implications, but also how to strategically plan for all four years of college. One thing they pointed out that I hadn't considered is that while the inheritance will impact his first year of aid, if he uses those funds for college expenses, the asset balance will decrease each year, which means the FAFSA impact decreases too. So it's not like you're stuck with the same penalty for all four years. Also, don't forget to look into merit-based scholarships that aren't need-based. With an inheritance like this, your son might not qualify for as much need-based aid, but merit scholarships don't care about assets - just grades, test scores, and achievements. Hang in there - this community has been incredibly helpful for me, and it sounds like you're getting great advice here!

As a newcomer to this community, I wanted to add my voice to thank everyone for such detailed and helpful responses! I'm in a somewhat similar situation with my daughter who recently received a settlement from an accident that happened when she was a minor, and reading through all these comments has been incredibly educational. What really stands out to me is how everyone emphasizes honesty and transparency in the FAFSA process - it's clear that trying to "game the system" can backfire badly. The breakdown of the actual math (especially the asset protection allowance that @Liv Park mentioned) really helps put this in perspective. Knowing that it's not the full inheritance amount being assessed, but rather the amount above $7,600 at the 20% rate, makes the financial impact feel much more manageable. I'm definitely going to follow the advice about reaching out to financial aid offices directly and exploring merit-based scholarships as well. It's encouraging to see that while this does complicate the financial aid picture, it doesn't necessarily close all doors. The suggestion about consulting with a college funding specialist also sounds like a wise investment. Thank you all for creating such a supportive space where families can get real, practical guidance on these complex situations!

Welcome to the community! This is such a comprehensive discussion and I'm learning so much from everyone's experiences. I wanted to add something that might be helpful for both your niece's planning and your own graduate school considerations - the new FAFSA Simplification that went into effect has changed some of the requirements and timing. The Student Aid Index (SAI) replaced the Expected Family Contribution (EFC), and there are some changes to how family income and assets are calculated. For your niece's gap year planning, one strategy some families use is timing when parents realize investment gains or bonuses, since the FAFSA looks at income from two years prior (so for 2027-2028 aid, it would look at 2025 tax year income). This is called "base year planning" and might be worth discussing with a financial advisor. For graduate school in public policy, I'd also suggest looking into the Public Service Loan Forgiveness (PSLF) program if you're planning to work in government or qualifying nonprofits after graduation. While you'd still need to take loans initially, knowing you have a path to forgiveness can make those federal loans more palatable than private alternatives. Also, many public policy programs have partnerships with local government agencies that offer internships with stipends or even tuition assistance - definitely worth asking about during the application process!

Welcome to the community, Yara! Your gap year question is a great one that doesn't get asked enough. As Evan mentioned, the gap year itself doesn't hurt FAFSA eligibility, but there are a few additional things to consider: If your niece works during her gap year, any income over $7,600 (for 2024-25) will count toward her Student Aid Index calculation at 20%, which is actually a much higher rate than parent income. So if she earns $15,000, about $1,480 would be expected to go toward college costs. That said, having some savings and work experience often more than makes up for this! Also, some scholarships are specifically for "traditional" students entering directly from high school, so she'd want to research whether any scholarships she's interested in have timing requirements. For your graduate funding timeline - definitely start a full year early! I'd recommend creating a spreadsheet with all the deadlines because they vary so much. Some prestigious fellowships like the NSF Graduate Research Fellowship have deadlines as early as October, while others are in January/February. The key is to start researching in summer before your application year. One tip: reach out to current graduate students in programs you're interested in. They often know about funding opportunities that aren't well-publicized and can give you the inside scoop on which assistantships are most competitive versus which ones usually have openings.

I'm so sorry you're dealing with this - it's absolutely maddening! I'm having the exact same issue with my FAFSA. My estimator showed an SAI of around $3,800 with decent Pell Grant eligibility, but my processed application came back with an SAI of $5,900. That's over $2,000 higher! What's really frustrating is that I used the estimator multiple times to double-check my numbers before applying to schools, and I was so careful to enter everything exactly as it appeared on my tax forms. Now I'm questioning whether I can afford some of the schools I was accepted to. I also noticed missing tax information on my processed form, so I'm really hoping that's contributing to the inflated SAI. I'll definitely be submitting corrections on March 30th as soon as the window opens. Has anyone found it helpful to contact their schools' financial aid offices about this discrepancy before submitting corrections? I'm wondering if I should give them a heads up about the situation or wait until after I've corrected the missing data. This whole process has been such a stressful mess!

I'm so frustrated reading all these comments because I'm dealing with the exact same issue! My FAFSA estimator showed an SAI of $4,200 with about $3,500 in Pell Grant eligibility, but when my processed application finally came through, my SAI jumped to $6,400 and my Pell dropped to just $2,100. That's a difference of over $1,400 in aid! Like everyone else here, I also have missing tax information on my processed form - it's like the IRS data retrieval tool just didn't work properly. I've been accepted to several schools and received preliminary aid packages, but they're all based on this inflated SAI number which is making some of my top choices unaffordable. The most frustrating part is that I specifically used the estimator to help decide which schools to apply to and how much debt I could reasonably take on. Now all of that planning feels worthless because the numbers were so wrong. I'm definitely submitting corrections on March 30th and I've already reached out to a couple financial aid offices to explain the situation. Most have been understanding and said they can work with students affected by these calculation issues. This whole FAFSA rollout has been such a disaster - we shouldn't have to be dealing with unreliable planning tools and missing data when making such important decisions about our education and financial future!

I'm new to this community but dealing with the exact same broken contributor link problem! My daughter sent me the invitation three days ago and every time I click the link, it either goes to a blank page or shows some generic error message. What's really frustrating is that I have an existing FSA ID from when I took out parent PLUS loans for my older son, but the system doesn't seem to recognize that I should have contributor access. Reading through all these responses has been so helpful - I had no idea this was such a widespread issue with the new FAFSA system! I'm definitely going to try the approach that several people mentioned about having my daughter delete my current invitation and resend it so I can create a brand new FSA ID specifically for contributor purposes. It seems counterintuitive to have multiple FSA IDs, but if that's what works with this broken system, I'm willing to try anything. Thanks to everyone who shared their experiences and workarounds - it's reassuring to know I'm not the only parent struggling with this technical nightmare!

I'm new to this community but experiencing the exact same frustrating issue! My son invited me as a contributor last week, but every time I click the link in the email, it either goes nowhere or shows an error page. Like many others here, I have an existing FSA ID from my own student loans years ago, and it seems like the system just can't handle linking that to the new contributor role. I've been reading through all these helpful responses and I'm definitely going to try the delete-and-recreate approach that @Marcus Patterson and others have mentioned. It's crazy that we have to work around the system like this, but if creating a separate FSA ID specifically for contributor purposes is what works, I'm willing to try it. Has anyone who successfully used this workaround run into any issues later with having multiple FSA IDs, or does everything work smoothly once the new contributor ID is set up? Really appreciate everyone sharing their experiences - it's such a relief to know this isn't just happening to my family!

Don't get too discouraged! While the previous comment has some truth about the system's problems, there are definitely strategies to maximize your aid: 1. Apply to schools known for meeting high percentages of demonstrated need (many private colleges) 2. Look for schools where your academic profile is above their average - you may get merit scholarships on top of need-based aid 3. Apply for as many private scholarships as possible 4. If your family's financial situation has changed since the tax year used for FAFSA, file an appeal with each financial aid office (professional judgment review) 5. Consider starting at a community college for gen-ed courses, then transferring With an SAI of 1500, you're in a better position than many students. Focus on schools with strong aid programs and be strategic in your applications.

Your SAI of 1500 puts you in a really good position for financial aid! As others mentioned, the lower the SAI, the better for aid eligibility. Here's what you can realistically expect: **Federal Aid:** - You'll likely qualify for a substantial Pell Grant (probably around $6,000-7,000 since the max is about $7,900 for SAI under 3000) - Subsidized federal loans where the government pays interest while you're enrolled - Possible work-study opportunities **The key thing to remember:** Your actual out-of-pocket cost will vary DRAMATICALLY between schools. I've seen students with similar SAIs get offers ranging from $5,000/year to $25,000+/year depending on the institution. **Pro tip:** When you get your aid packages, look at the "net price" (total cost minus grants/scholarships) rather than just the aid amount. Sometimes a more expensive private school ends up being cheaper than a state school after aid is factored in. Don't let your parents panic yet - wait for the actual packages to arrive before making any decisions. Your SAI gives you a good foundation for substantial aid!