Divorced and remarried. My daughter from my first marriage is starting college. My wife and I have contributed some to a 529 plan. I'm listed as the owner of the 529 plan and since I'm the non-custodial parent the 529 did not have to be reported on FAFSA. Since the balance is not enough to cover 1 year, we're simply saving that money for her senior year since a distribution would have to be reported on her FAFSA.
Trying to determine a way to assist her with the first 3 years of college that would not impact her financial aid. Don't have enough to just cut her a check, so considering a loan. Seems as a non-custodial parent, I can apply for a Parent Plus Loan. However, it's not clear to me if that would have to be reported next time she fills out FAFSA. Does appear that if I just cut her a check as a non-custodial parent, she would have to report that amount next time she fills out FAFSA as non-taxed income. Does that also apply if the money comes from a Parent Plus loan?