<p>There are two issues here that need to resolved with a possible third issue: One is how to ensure any gift or payment does not affect next years EFC or this year’s school grants. The other issue is to ensure that none of the gift is taxed either to the giver or the receiver/s as that would mean the student will not get the full amount.</p>
<p>I think the OP or the person the OP is posting has a variety of options and need to explore it with the giver</p>
<p>The third possible issue is how can gift giver get a tax break. The only way I could see is if the giver gives to a 529 plan and the state gives a break. Here is a list of states that give breaks for 529 contributions.</p>
<p>[FinAid</a> | Saving for College | State Tax Deductions for 529 Contributions](<a href=“Your Guide for College Financial Aid - Finaid”>State Section 529 Deductions - Finaid)</p>