<p>Just a quick question if anyone knows. DD is borrowing some money from her uncle (interest free!) for tuition. We're not sure what impact this will have on her financial aid for a profile school. Will this now count as income for her? Should he give it to her directly or pay the tuition bill to the school? The profile doesn't ask for any figures for loans or debts so we're not sure how this would be looked at next year. Thanks!!</p>
<p>Good question!</p>
<p>Elsewhere I've read that family members should write their checks directly to the college, but I don't remember where I saw that. Maybe at <a href="http://www.finaid.org?%5B/url%5D">www.finaid.org?</a></p>
<p>If it is a loan from a relative, with a note written for it, then wouldn't you treat it just like a home equity loan or a student loan or any other loan? Not income?</p>
<p>I certainly wouldn't think that it would be income, just as a loan is out income. If he writes her a check, that is then sitting in her bank account when you fill out your FA forms, I would think the money would be an asset. Might be better for him just to write the check to the school. I f part of it is to be book money and living expenses, that would most likely be better off in her bank account.</p>
<p>If he writes a check to her, and it is above a certain amount, gift taxes are involved. He can write it directly to the school to avoid those. I would not consider it income. If it is not a written legal agreement, I would not report it at all.</p>
<p>just have him give it to her in cash and keep it under the table ;)</p>
<p>No cheating, I think it can be a loan, with a note written and signed and legitimately not be income, but people are right, it would be an asset. If it is a loan not a gift, then no gift taxes</p>
<p>Probably not a good idea to suggest fraud, even in jest, on a board like this ;)</p>
<p>So long as the money is not in hand when you are filing FAFSA it is not an asset. Is profile the same?</p>