I'm so sorry for your loss, and I really admire how you're thinking ahead about your son's financial aid despite everything you're going through. Everyone here has given you excellent advice about keeping it as a parent asset - that 20% vs 5.64% assessment rate difference is absolutely crucial at your income level. One thing I wanted to add that I learned the hard way: if you do decide to put some of this toward your IRA (which is a great strategy since retirement accounts don't count on FAFSA), make sure you understand the contribution limits and deadlines. For 2024, you can still contribute up to $7,000 to an IRA until April 15, 2025. If you're over 50, it's $8,000. That could be a perfect way to shelter most of this inheritance while still keeping some accessible for emergencies. Also, don't forget that the FAFSA will need to be renewed every year your son is in college, so this strategic thinking about assets will be relevant for multiple years, not just his freshman year. You're being really smart to get this right from the start.

I'm sorry for your loss, and I want to echo what everyone has said about keeping this as a parent asset - the assessment rate difference is significant enough that it could impact your son's aid package by over $1,000. One additional strategy to consider: if you have any high-interest debt (credit cards, personal loans), using part of this inheritance to pay that down before filing FAFSA could be financially beneficial in multiple ways. You'd reduce your reportable assets while also saving on interest payments, which effectively gives you more money available for college expenses. Just make sure to keep documentation of any debt payments in case financial aid offices have questions about asset changes. The retirement account strategy others mentioned is excellent too, especially since you're in the age range where catch-up contributions are allowed. Whatever you decide, you're asking the right questions and clearly thinking strategically about your son's future despite dealing with a difficult time.

Just to clarify a few points: 1) Only the custodial parent completes the FAFSA (you, in this case), 2) Child support received DOES count as untaxed income on the FAFSA, but money your ex pays directly to the school is handled differently, 3) If you've remarried, your current spouse's information must be included regardless of their relationship to your son. The Direct2Student section of the FAFSA has a great worksheet specifically for divorced/separated parents that might help you organize the information before you start filling out the actual form.

I went through this exact situation two years ago! Since your son lives with you primarily and you're covering most expenses, you're definitely the custodial parent who should complete the FAFSA. One thing that helped me was keeping detailed records of all expenses I paid vs. what my ex contributed - made it much easier to determine the 50%+ support requirement and accurately report everything. The new FAFSA is actually much clearer about divorced parent situations than the old one was. Don't stress too much about it - sounds like you have a straightforward case where you're clearly the custodial parent.

btw make sure u tell ur son to check his email from those new schools. sometimes they send important financial aid follow-up stuff right away and if u miss those emails it can mess up getting aid packages

Just wanted to add that you can also track the transmission status through your FSA ID account dashboard. There's a section that shows when your FAFSA data was last sent to each school and the transmission date. This gives you peace of mind that the system actually processed the school additions correctly. I found this really helpful when I was in a similar situation last year - it clearly showed the dates when each school received the updated information, which was about 4 days after I added them to the list.

Verification happens to about 25% of FAFSA filers, chosen either randomly or due to discrepancies in your application. It's not necessarily bad luck - just part of the process for some. If selected, you'll need to provide additional documentation to verify your financial information. Just keep all your tax documents organized so you can easily upload them if needed. The most important thing right now is getting the application started correctly with your daughter as the applicant.

Just wanted to add a helpful tip for when you're filling it out - have your 2023 tax returns ready along with bank statements and investment account info. The new FAFSA can auto-populate some tax info using the IRS Data Retrieval Tool, but you'll still need other financial documents handy. Also, don't panic if the system seems slow or kicks you out - it's been having issues this year. Just save frequently and be patient. Good luck with your daughter's application!

YES!!! happens to me all the time. try using a different browser, that fixed it for me. chrome seems to work better than safari for the studentaid site.

I'm in the exact same situation! Submitted mine on January 18th and still stuck in review. This is so stressful with all the scholarship deadlines approaching. I've been checking my status obsessively every day hoping something will change. It's reassuring to know I'm not alone in this but also concerning that so many of us are experiencing these delays. Really hoping the system catches up soon because I can't afford to miss out on aid opportunities due to processing delays that are completely out of our control.