<p>I have twin daughters who will be freshman this fall. Each girl has received scholarship, grants, and a Stafford loan to cover tuition. The girls are each planning to live off-campus in an apartment. Originally we thought one would commute and the other would live off-campus, so it was stated on the FAFSA that one would be at home, however, the school figured the COA the same for both girls. We can either take out a loan for the rent or accept money from the girls grandparents. Is there any reason the grandparents can't just write a check to each landlord for rent instead of gifting the money to us for the rent? One apartment is totally separate from the school and the other shared apartment is a "school sanctioned" apartment. (Also, I would appreciate it (after seeing some other posts) if no one would assume that because the grandparents are willing to help that we don't deserve financial aid. My husband has had prostate and lung cancer in the past 8 years and he's self employed so our medical bills are astonomical.) Should the grandparents write the check to the landlord - or should they gift us, the parents, the money? The amount would be well under the yearly gift tax amount. I would appreciate any input. The rent checks are due in a couple of days. My accountant has no experience with this and the only posts I've seen on this issue had to do with tuition.</p>
<p>It would probably be easiest just to have the grandparents write the check to the landlord, simply as a matter of convenience (why waste time and energy sending money through you?).</p>
<p>Don’t forget though, that the grandparents’ assistance needs to be reported on the girls’ 2014 FAFSA.</p>
<p>If the the money the grandparents are contributing for housing is gifted to you (and then you use it to pay for housing… or anything else for that matter) then it does not need to be reported on the students’ FAFSA next year. If the grandparents pay it on behalf of the students to the landlord, or the school or anyone other than you, then it is supposed to be reported on the FAFSA and will count as “unearned income” to the students. That can seriously ding their financial aid. Make sure those nice grandparents gift you with the money… and they don’t send it to anyone else. That counts for any assistance they give, whether it’s to pay the students’ utility bills, for medical appointments, for health insurance, for books… for anything that is on the students’ behalf.</p>
<p>Thanks for the quick responses. So, if the grandparents write the check to us directly, then we need to claim it as unearned income on the FAFSA next year? Will that directly impact our aid, even though our need for housing wasn’t met? Or does it just not effect our assets as much as it would impact the grandchildrens? I’m learning more about this than I ever wanted to know…</p>
<p>Have the grands gift the money to you so it’s not reported to FAFSA.</p>
<p>Then, no, you do not report it as unearned income. You’d only do that if the money is paid directly to the landlords.</p>
<p>I thought parents had to report gifts also.</p>
<p>Gifts TO THE parents of dependent students are NOT reported on FAFSA.</p>
<p>Well that solves that problem. I knew I’d find the answer if I asked actual parents of college students. Thanks so much.</p>
<p>The FAFSA does not ask about gifts to parents, only gifts to students and for money paid by anyone other than the parents on the student’s behalf.</p>
<p>Hi - one other question. On the FAFSA is 92i for gifts?..or is that to report some other untaxed income? Just covering all my bases. Thanks.</p>
<p>I think there would be a “j” like there is in the student section if it were to be included.</p>
<p>Thanks again - I’ll take a look at the FAFSA form again. I never noticed the “j”…but then again I’ve only filled it out once so far. My brain is over “FAFSA-d” about now.</p>
<p>There’s no equivalent question in the parents’ section.</p>