Is Parental Support For a Homeless Student Considered Untaxed Income Or In-Kind Support, Or Is It Disregarded?

It is disregarded. Starting with the 2024-25 award year under the FAFSA Simplification Act, cash 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. The same is true for in-kind support, which was already the case prior to 2024-25.

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.