You're absolutely making the right decision by filing accurately as a dependent! I wanted to add one more resource that might help - many colleges have emergency aid funds or special circumstances appeals processes that can provide additional assistance beyond what the FAFSA shows. Once you receive her initial aid packages, don't hesitate to schedule a meeting with each school's financial aid office to discuss your family's situation in detail. They often have institutional grants or work-study opportunities that aren't automatically awarded but can make a huge difference. Also, encourage your daughter to maintain good grades once enrolled - many schools offer retention scholarships for students who perform well academically. Best of luck with the process!

As someone who went through this process with three kids, I want to emphasize something that hasn't been mentioned yet - make sure to submit your FAFSA as early as possible after October 1st! Some state aid and institutional aid is awarded on a first-come, first-served basis, so timing really matters. Also, don't forget to check if your state has additional financial aid programs for low-income families. Many states have need-based grant programs that work alongside federal aid. In our state, my youngest qualified for an additional $3,000 state grant that we almost missed because we didn't know to apply separately. Your daughter's $7,800 in earnings actually works in her favor since student income up to about $7,400 is protected anyway, and it shows she's willing to work to contribute to her education costs. Colleges often view that positively when considering aid packages!

Thank you all for the incredible advice! After making several calls today, I confirmed that FIL is indeed the owner of the 529 accounts (phew!). I also learned that our specific state's 529 plan allows for a limited proxy authorization form that will let us request withdrawals without bothering him each time. I'm now shifting focus to other aspects of FAFSA optimization - timing any asset adjustments, understanding how our home equity factors in, and helping the kids target schools where they might qualify for merit scholarships too. This community has been SO helpful - I was seriously losing sleep over this 529 ownership issue!

This is such a great example of why it's worth double-checking all the details before panicking! I'm so glad you called and found out your FIL is already the owner - that's honestly the best-case scenario for FAFSA purposes. Since you mentioned you're now focusing on other FAFSA optimization strategies, here are a few things that helped us when my daughter was applying: 1. If you have any flexibility with retirement contributions (401k, IRA), maxing those out in the base year can help reduce your adjusted gross income 2. Consider timing any major purchases or home improvements before filing - reducing cash on hand can sometimes help with the asset assessment 3. Look into whether your state has any additional aid programs that might have different filing deadlines or requirements Also, don't overlook the CSS Profile if any of your kids' target schools require it - the strategies can be quite different from FAFSA optimization. You're being so proactive with this planning while they're still juniors - that's going to make such a difference!

As a newcomer to this community and the FAFSA process, I just want to say thank you to everyone who has shared their experiences with VA disability and the new FAFSA system. My husband is a veteran receiving disability compensation, and I've been completely overwhelmed trying to figure out how this new automatic system works compared to what I've heard about previous years. Reading through all these detailed step-by-step instructions has been incredibly reassuring. The "submit first, correct later" approach definitely feels backwards to me, but now I understand that's just how the system is designed. I'm particularly grateful for the specific details like where to find the "Special Circumstances" section (apparently it's easy to miss at the bottom!), what documentation to have ready (VA award letter), and realistic expectations about processing times (3-5 business days). This is our first time doing FAFSA for our daughter, and I was honestly panicking that we might mess up her financial aid eligibility. But seeing how many other families have successfully navigated this VA disability exclusion process gives me confidence that we can figure it out too. The community support here is amazing - thank you all for taking the time to help newcomers like me!

As someone completely new to both this community and the FAFSA process, I can't express how grateful I am for all the detailed guidance shared here! My spouse receives VA disability benefits and I've been absolutely lost trying to understand how the new automatic system handles this. The step-by-step breakdowns from everyone who has successfully navigated this process are incredibly valuable. What really stands out to me is how counterintuitive the "submit first, correct later" approach is - I would have naturally wanted to get everything perfect before submitting. But understanding that the system is designed to pull all income data first and then allow for corrections afterward makes so much more sense now. The specific tips about finding that easily-missed "Special Circumstances" link at the bottom of the page, having the VA award letter ready, and being patient with the 3-5 day processing time are exactly what I needed to hear. This community is amazing for helping newcomers understand a process that feels incredibly overwhelming at first. Thank you all for taking the time to share your experiences and help families like mine ensure we don't accidentally impact our children's financial aid eligibility!

I'm so grateful I found this thread! I'm a parent filling out my first FAFSA for my daughter and was completely stumped by this question. I did a 401k rollover last year when I retired from my previous job, and like so many others here, I got thrown off by the word "pension" when I knew it was a 401k. Reading through everyone's explanations, especially from Connor about how marking "yes" actually prevents the rollover from being counted as income, makes so much sense now. I was terrified of checking the wrong box and accidentally inflating our income or making it look like we had more available funds than we actually do. I'm going to go back and check my 1099-R for that "G" code that was mentioned, and I'll make sure to keep all my rollover paperwork organized. It's such a relief to know that being honest about the rollover actually helps rather than hurts our aid calculation. Thank you to everyone who shared their experiences - this community has been invaluable for a nervous first-time FAFSA parent!

I just want to echo what everyone else has said - this thread literally saved me from making a huge mistake! I was about to mark "no" on the pension rollover question because I kept thinking "it's not a pension, it's a 401k transfer." But now I understand that the FAFSA uses "pension" as a broad category that includes 401k plans. What really clicked for me was the explanation about how marking "yes" actually PROTECTS your financial aid by preventing that rollover amount from being counted as available income. I had it completely backwards - I thought saying "yes" would somehow make our financial situation look better than it really is. For anyone else reading this who's still unsure: if you moved money from one 401k to another, that IS a pension rollover for FAFSA purposes, and you should definitely mark "yes." The system is designed to be fair and accurate, not to trick you into the wrong answer. Thank you to everyone who shared their experiences and expertise - this community is incredible!

Congratulations on getting your discharge! This is huge! I'm a financial aid counselor and I've helped several students navigate this exact situation. A few important points to add to the great advice already shared: **Immediate steps:** - Download and save multiple copies of your discharge letter (as others mentioned) - Check your credit reports in 60-90 days to ensure the discharged loans are properly removed - Consider setting up credit monitoring to track the positive changes **FAFSA application tips:** - You can start your 2025-2026 FAFSA application now, but wait to submit until you confirm your loans show as discharged in the system - When you apply, you'll be treated as a "new" borrower for aggregate loan limits, which is fantastic - Make sure to complete the FAFSA early - community colleges often have limited aid funds that are awarded first-come, first-served **One thing most people don't know:** If you had any federal work-study earnings or other aid from your time at Corinthian that was later deemed fraudulent, those amounts may also be restored to your lifetime eligibility limits. You're about to get a fresh start on your educational journey - that's incredible after 8 years of struggle! Community college is an excellent choice for completing your degree affordably. Best of luck! 🌟

This is such wonderful news - congratulations on finally getting justice after all these years! 🎉 I went through something similar with my Art Institute loans that got discharged last year, and I can tell you that getting your FAFSA eligibility back is truly life-changing. A few things from my experience that might help: **System timing**: Like others mentioned, there can be delays between your discharge letter and the systems updating. Mine took about 5 weeks to show properly on studentaid.gov, but don't worry if it takes a bit longer. **PELL Grant restoration**: Since you mentioned PELL grants in your follow-up comment - those should be automatically restored to your lifetime eligibility when the discharge processes. You won't need to do anything special on the FAFSA application for that. **Community college tip**: When you're ready to apply, reach out to the financial aid office at your community college directly. Many of them have experience helping students with restored eligibility and can guide you through any quirks in the application process. **Credit score**: In my case, my score jumped about 85 points over 3 months as the negative marks were removed. It was incredible to see! You've been through so much - you deserve this fresh start. Community college is perfect for getting back into the swing of things academically, and with your FAFSA eligibility restored, you'll actually be able to afford it. Wishing you all the best on this new chapter! 📚✨