<p>Friedokra, I think that you make some very good points. How about the kid who gets more in tuition bc the younger sibling is going to a "private prep". The parents might benifit from the tuition that the profile school believes mom and dad are paying the younger child's private school, but the grandparents or other relatives could be paying that tuition as well!</p>
<p>Northeast mom: Yep. I agree. FAFSA is based on ability to pay, not requirement to pay. Colleges typically adjust that with their own formula. I am not telling them what to do, but only asking that the complete and TRUTHFUL picture be disclosed. Or put another way, if some kid has wealthy grandparents who are willing and able (and indeed in the past have ALWAYS paid the tuition for private school), then what is their real financial aid need?</p>
<p>I have not filled out a FAFSA yet, that will be this year, but I attended a financial aid meeting at a college fair last night. The presenter made the statement that, if grandparents or others (friends, relatives, etc) are going to help pay for your college, they should send the money directly to the college or university, rather that give the money to you. Then, that money won't count as a gift to you and hurt you on the next year's FAFSA. What do you all think of this? I still see that this might need to be declared under "bills paid on your behalf".</p>
<p>I guess it's all a matter of one's own belief. After all, in plain language, what does "need-based aid" mean? Duh. Aid you get because you NEED it. If you don't need it, you shouldn't get it, whatever the reason. If you already know your millionaire GP's are going to pay you obviously don't NEED need-based aid. To me there is a matter of one's own ethics and integrity. Do you realize you may be taking money from someone who really does need it? do you care? Now, of course, FAFSA is just a form. It does not think, and, as such there are probably any number of ways to fool it. Just like the IRS. Financial aid that is not purely merit-based is based on need. I guess there are many who could take advantage of Harvard's "below 60K is free" while GP's give the kids thousands. Wonder if anyone has noticed need-based-aid kids carrying Prada bags and driving Beamers? I'll bet there are many. but doing anything about it? Probably futile.</p>
<p>I never occured to me that "bills paid on your behalf" wouldn't include grandparents paying tuition whether directly to the school or not. Of course it does. It sounds pretty clear to me, so I don't see what the loophole is -- I do see that this may be a place people often cheat, but that's what it is, cheating (or stealing to put a finer point to it).</p>
<p>I think the advantage of paying directly to the school is not to avoid putting it on your FAFSA (whoever told you that is just plain wrong!) but to avoid gift tax if the contribution is over $11000. I think there is an exemption in the gift tax laws for paying tuition.</p>