When Should Monetary Support For an Independent Student Be Included On the FAFSA?

It isn't. Starting with the 2024-25 award year under the FAFSA Simplification Act, cash support (monetary support) is not reported on the FAFSA, is not included in need analysis, and is not treated as other financial assistance (OFA) when packaging the student with Title IV aid.

However, the financial aid administrator (FAA) could choose to exercise their discretion to perform a professional judgment (PJ) adjustment to the student's income or cost of attendance (COA) to account for any money received or paid on the student's behalf (cash support), such as assistance with:

• Health or car insurance bills;
• Cell phone bills;
• Rent or housing bills; and
• Higher education expenses.

Any PJ decision must be based on special circumstances, exercised on a case-by-case basis, and thoroughly documented in the student’s file.

Cash support includes money and gifts and housing, food, clothing, car payments or expenses, medical and dental care, college costs, and money paid to someone else or paid for on the student's behalf (such as a friend or relative paying the student's electric bill or part of the student's rent). The basic rule is: if someone pays a cost the student is obligated to pay, the amount counts as cash support. On the other hand, in-kind support is support other than money, such as when friends or relatives give the student food or allow the student to live with them rent-free.

P&P Builder: NASFAA’s Policies & Procedures (P&P) Builder guides you step-by-step through the creation of a centralized, accessible policies and procedures manual. This is included in the cost of NASFAA Value Plus membership. There is an additional cost for other membership levels.