<p>I was hoping someone on here could help me out with this situation..</p>
<p>I will be transferring in the fall and will qualify for the blue and gold program because my family income is less than $80,000. I believe that means that I will be awarded enough money in grants and/or scholarships to pay for tuition and other school fees.</p>
<p>Recently, my grandma mentioned that she wants to give me some money to help pay for the rest of the costs (rent, utilities, food, etc) that won't be covered by the blue and gold plan. I don't know how much she plans to give me, but for the sake of my question let's say $10,000.</p>
<p>If she were to give me that $10,000 once I transfer, how would it affect my financial aid for the next year? Would I still qualify for the blue and gold program? Any insight into this would be greatly appreciated. Thanks for reading.</p>
<p>Have her gift the money to your parents, and then have them give the money to you. Then you don’t have to report it.</p>
<p>Yes, definitely do NOT report it if you know what’s best for you. </p>
<p>Mom2 is correct. Have grandma gift the money to your parents. Then have your parents pay your college bills with the money.</p>
<p>So if my grandma gives the money to my mom and then my mom puts it into my account, I won’t have to report it on next years fafsa and it won’t affect the amount of my financial aid?</p>
<p>Thank you so much for your help! </p>
<p>You will have to report ANY of that money from grandma that remains IN your accounts when you file your FAFSA next year. </p>
<p>To be honest, I think it is much cleaner for your grandma to gift the money to your parents and have them pay your COLLEGE bills with the money. </p>
<p>If there is money in your parents account next year when you file the FAFSA, it is assessed at 5.6% AFTER an asset protection allowance. Any money in YOUR account would be 20%…no asset protection allowance.</p>
<p>Thank you @thumper1. That really clears things up. </p>