How Does the Student Report Tuition Which Was Paid On Their Behalf From a Friend's Trust Fund?
Award Year: 2024-25 KA-36697 Helpfulness Rating 25 page viewsThis guidance is specific to the 2024-25 award year and later. For 2023-24* award year guidance see AskRegs Q&A, How Does the Student Report Tuition Which Was Paid On Their Behalf From a Friend's Trust Fund?
Starting with the 2024-25 award year under the FAFSA Simplification Act, such funds are not reported on the FAFSA and are not included in the student aid index (SAI) calculation. However, because such funds paid tuition, the amount would be treated as other financial assistance (OFA) when packaging the student with Title IV aid. Reference 34 CFR 685.102(b)(2), Estimated financial assistance, and 673.5(c).
Since the trust fund is not in the student's or the parent's name, the student or parent cannot report the trust fund as part of their assets.
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