Yes, document any non-taxable income like disability benefits. For FAFSA purposes, this still counts as income even though it's not taxed. However, the good news is that with only disability income, your student will likely still qualify for significant need-based aid. When completing the FAFSA, the application will ask if the parent receives certain federal benefits like SNAP, Medicaid, or SSI - answering yes to any of these can qualify the student for an automatic zero EFC (now called 0 SAI - Student Aid Index), which maximizes their aid eligibility.

As someone who's helped multiple students through unusual FAFSA situations, I want to emphasize a few key points: 1) You're absolutely right that only the biological father should be listed as the parent, regardless of who claims her on taxes. 2) His SSDI income actually needs to be reported on the FAFSA, but since he likely qualifies for means-tested benefits, she should get automatic maximum aid eligibility. 3) Start the application early because verification is almost guaranteed with a single-parent household with only disability income. 4) Have documentation ready: custody papers, proof of benefits, and a signed statement explaining the mother's absence. The silver lining is that her aid package will likely be very generous! Make sure the father completes and signs the FAFSA himself using his own FSA ID.

I had no idea about the origination fee difference! That's significant. It seems like the subsidized loans really are the better deal all around. I'll need to have my daughter check exactly what types of loans are in her financial aid package.

As someone who just went through this process last year, I can confirm what others have said - there's absolutely no requirement for your daughter to take loans before you can apply for Parent PLUS. The misinformation from financial aid offices is unfortunately common. I'd recommend going directly to studentaid.gov and applying yourself rather than relying on the school's guidance. Also, definitely have your daughter accept any subsidized loans she's eligible for first since they don't accrue interest while she's in school. The interest rate difference alone makes it worth prioritizing student loans over Parent PLUS when possible. Good luck with your decision before the May 1st deadline!

Thank you everyone for all this helpful advice! I'm feeling a lot less panicked now that I understand the process. Going to start collecting all our documentation right away and make that spreadsheet showing our income change. Still not looking forward to the process but at least I know what to expect now!

One thing I'd add that hasn't been mentioned yet - when you're documenting your income change, also include any documentation about changes to your assets from the house sale and relocation. Since you mentioned you sold your house and moved 7 states away, that could significantly impact your asset calculation on the FAFSA too. The financial aid office might want to see the closing statement from your house sale, any moving expenses, and documentation of your new living situation (rent vs. mortgage, etc.). Asset changes can sometimes be just as important as income changes in these professional judgment reviews!

Glad to hear you've submitted the FAFSA! One more thing to be aware of: since your son is transferring from a community college to a 4-year institution, he'll need to ensure that his financial aid is properly transferred. This means: 1. Having his community college remove him from their system after the current term ends 2. Making sure his new school is listed as his primary institution on the FAFSA 3. Checking if there are any transfer-specific scholarships he can still apply for (many schools have these!) Also, once he decides which school he'll attend, have him accept his financial aid package promptly. This is especially important for work-study opportunities, which can be limited for transfer students.

Just wanted to add that since your son is transferring mid-degree, make sure he understands how his Pell Grant eligibility works. The lifetime limit is 600% of a full award (equivalent to about 6 years of full-time enrollment), and his community college years count toward this total. It shouldn't be an issue for most students, but it's something to keep in mind for planning purposes. Also, if he's been receiving any state grants at the community college level, those programs sometimes have different rules for 4-year institutions. In my state, the grant amount actually increases when you transfer to a university, but the GPA requirements are stricter. Each state is different, so definitely check with your state's higher education agency about continuing eligibility.

That's a fantastic suggestion about co-ops! I just checked the school's website and they do have a co-op program for engineering students starting sophomore year. That could definitely help with years 2-4. We'll keep looking for outside scholarships too - haven't tried checking with my employer yet. Thank you!

Hey Levi! I'm new to this community but wanted to share something that might help. My family went through almost the exact same situation two years ago - our aid package was about $9K higher than expected. What really made the difference for us was being super organized with our appeal. We created a detailed spreadsheet showing the original estimate vs. actual costs, included copies of all our medical bills (we had some unexpected expenses too), and wrote a formal letter explaining our situation. The key was being factual and respectful, not emotional. We also scheduled an in-person meeting rather than just submitting paperwork. It took about 3 weeks, but they ended up increasing our aid by $6K per year! Don't give up - persistence really pays off in these situations. Your daughter's engineering program is worth fighting for!