<p>Tuition paid by anyone directly to a college is exempt from the annual $13,000 tax-free gift allowance. Has anyone stated otherwise here (maybe I missed it)?</p>
<p>The main issue that gifts of tuition paid by extended family are reported as untaxed income to the student on FAFSA, which has the potential to raise EFC. Any student income over the $5250 student income protection allowance is assessed at the rate of 50% and added to the family’s EFC.</p>