I went through this exact situation with my daughter two years ago. Her father refused to provide tax information because he felt she should "earn her own way." Here's what worked for us: 1. We got his refusal in writing via email (saved screenshots of texts too) 2. Filed the FAFSA as "Will not provide" for parent information 3. Met with THREE different colleges' financial aid offices - each handled it slightly differently 4. One school was able to provide a "Parent Non-filer Statement" that allowed her to get unsubsidized loans plus some institutional aid The key was being persistent and applying to multiple schools. One financial aid counselor told us that while they can't override dependency status easily, they have more flexibility with institutional funds for students in these situations. Also - and this might sound harsh - but consider having a family member or friend talk to your sister about the long-term impact. Sometimes hearing from someone outside the immediate situation can help parents realize they're hurting their child's future over a principle. My daughter's grandmother finally got through to her father, and he provided the info for her sophomore year. Don't give up! There are paths forward even if they're not straightforward.

I'm dealing with a very similar situation right now with my own daughter. What's helped us so far is creating a comprehensive "paper trail" of everything - not just the parent refusal, but also documentation of your niece's living situation with you, any communication attempts with her mother, and evidence of her financial independence efforts. One thing that hasn't been mentioned yet is the appeal process. If the initial financial aid office says no to special circumstances consideration, ask about their formal appeals process. Many schools have a secondary review committee that might view the case differently, especially if you can demonstrate that your niece has been functionally independent. Also, consider having your niece write a personal statement explaining her situation. Financial aid officers are human beings, and sometimes a well-written letter explaining the family dynamics and her commitment to education can make a real difference in how they exercise their professional judgment. The most important thing is to start this process early - don't wait until right before school starts. The earlier you begin working with financial aid offices, the more options they typically have available to help.

ok so im gonna go against wht everyone else said... keep the money where it is!!! colleges look at ur kids combined profiles and if u start moving money around they notice. my sister tried moving stuff to 529s and the financial aid office literally asked for 3 years of bank statements during verification!!! they saw all the transfers and counted it anyway. waste of time.

This is such a timely question! I'm dealing with something similar with my kids who are 3 years apart. One thing I learned from our financial advisor is to also consider the timing of when you make these changes. Since your younger child is still in 7th grade, you have several years before their assets would impact your older child's aid eligibility. The 529 strategy mentioned by Diego is solid, but also remember that FAFSA looks at assets as of the date you file, not when you earned or saved the money. So if you do move to a parent-owned 529, you might want to time it strategically around when you'll be filing your older child's FAFSA renewals. Also worth noting - some states offer tax deductions for 529 contributions, which could provide an additional benefit beyond just the FAFSA treatment. Definitely check what your state offers since that could make the decision even more worthwhile. Has your older child's school been helpful with explaining their specific aid policies? Some schools are more generous with aid renewals than others, which might influence how aggressively you want to pursue these strategies.

As someone new to this community, I'm blown away by all the helpful advice here! I'm not in this exact situation yet, but my younger daughter is doing online school and moves at her own pace, so I'm definitely bookmarking this thread for future reference. One thing I wanted to add that I learned from a friend who went through something similar - when you do get those Penn Foster transcripts, make sure to request extra copies to keep on file. She ended up needing transcripts again later for scholarship applications, internship programs, and even study abroad applications, and having extras on hand saved her from dealing with Penn Foster's customer service multiple times. Also, @Miguel Diaz, don't beat yourself up about not being prepared - your daughter's independence and drive clearly didn't come from nowhere! The fact that she was motivated enough to finish a year early shows she's got the skills to succeed in college regardless of the timing hiccups with financial aid. This whole thread is proof that there are always solutions, even when things don't go according to plan.

Welcome to the community! As someone who's been helping families navigate financial aid for years, I want to echo what others have said - you're absolutely not too late and your daughter's early graduation is actually a fantastic accomplishment! One additional tip I haven't seen mentioned yet: when you call the colleges' financial aid offices, ask specifically if they participate in any "priority review" programs for exceptional students. Some schools have special tracks for academically accelerated students that can actually result in better aid packages. Also, make sure to ask each school about their appeals process timeline - if you need to appeal an initial aid decision, knowing their deadlines upfront will save you stress later. Your daughter's self-direction in completing her education early shows exactly the kind of initiative colleges love to support. Don't let the paperwork stress overshadow what an amazing achievement this is!

As a newcomer to this whole college financial aid process, I just wanted to say thank you to everyone who's shared their experiences here! My daughter is starting college next fall and we're already trying to understand how her scholarship package will work tax-wise. Reading through this thread has been incredibly educational - I had no idea that scholarship money used for housing could be taxable income. The distinction between qualified vs non-qualified educational expenses is something I definitely need to discuss with our tax preparer. @Dmitri Volkov and @Eli Butler, thank you especially for the detailed explanations about reporting requirements and the new FAFSA rules. It's reassuring to know that the impact on future aid eligibility isn't as severe as I initially feared. I'm definitely going to start that tracking system early like several of you suggested, and I'll make sure to contact the financial aid office about any restrictions on specific scholarships. Better to be over-prepared than scrambling come tax time! This community has been such a valuable resource - it's amazing how much clearer everything becomes when you can learn from people who've actually been through the process.

As another newcomer to this community, I just wanted to echo Aaron's thanks to everyone who's shared their experiences! This thread has been incredibly helpful. My son will be starting his sophomore year and we completely missed the scholarship tax implications his freshman year - reading through all these responses, I think we need to file an amended return. One thing I haven't seen mentioned yet: does anyone know if there are different rules for athletic scholarships vs academic scholarships when it comes to the taxable portion? My son has a partial athletic scholarship that covers tuition plus some living expenses, and I'm wondering if that changes anything. Also, for those who've been through the process of filing amended returns for scholarship income - how complicated was it? I'm feeling pretty overwhelmed about having to go back and fix last year's taxes, but it sounds like it's better to correct it proactively rather than wait for the IRS to catch it. Thanks again to everyone for making this complex topic so much clearer!

As a newcomer to this community, I've been reading through this incredibly detailed and reassuring discussion! My daughter is in almost the exact same boat - she's saved about $9,300 from working at a local grocery store since her junior year, and I've been absolutely terrified about how this might affect her Pell Grant eligibility. This thread has been a complete game-changer for my understanding of the FAFSA process. I had absolutely no idea about the automatic zero SAI provision before finding this discussion - it sounds like it could be exactly what families like ours need! Given that our income is low enough that we qualified for full Pell this year, I'm really hopeful we might be eligible for this protection. What strikes me most about all these responses is how the community has consistently emphasized getting accurate information from official sources rather than panicking based on incomplete knowledge. The advice to contact financial aid offices directly before making any major decisions is spot-on - why stress over hypothetical scenarios when you can get definitive answers? I'm also incredibly encouraged by all the real success stories shared here. It's clear that the FAFSA system, while complex, does have meaningful protections for low-income families and considers the whole financial picture rather than just penalizing students for being responsible savers. My daughter definitely needs a laptop for college anyway, so if the timing strategy makes sense after speaking with a financial aid counselor, we'll consider that approach. But first, I'm calling the financial aid office this week to check our automatic zero SAI eligibility. Thank you all for creating such a supportive, knowledgeable community. You've transformed what felt like a financial aid crisis into a manageable situation with clear, actionable steps!

As a newcomer to this community, I've been reading through this entire discussion with such relief and gratitude! My son is in practically the identical situation - he's saved about $10,200 from working at a local restaurant throughout high school, and I've been absolutely panicking about how this might impact his financial aid for next year. This thread has been incredibly educational and reassuring. Like so many others here, I had never heard of the automatic zero SAI provision before reading everyone's experiences. Given that our family income is low enough that we received maximum Pell Grant this year, learning about this potential protection has given me tremendous hope! What I appreciate most about this discussion is how it's transformed from initial panic (exactly where I started) into practical, actionable solutions. The consistent advice to contact the financial aid office directly before making any decisions is so logical - why stress over hypothetical scenarios when you can get concrete answers about your specific situation? I'm also really encouraged by all the real success stories people have shared. It's clear that hardworking students with savings can still receive substantial aid when their complete financial picture is considered. The strategic timing advice for legitimate educational expenses makes perfect sense too - my son definitely needs a laptop and we'll be buying textbooks anyway. Thank you all for creating such a supportive and knowledgeable community. I'll be calling our financial aid office this week to check on our automatic zero SAI eligibility. This discussion has completely changed my perspective from crisis mode to confident planning!