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That’s what we were told, too, which is why we all need to create as wide a paper trail as possible so that if something ever comes up (ever) we can provide contemporaneous documentation from a variety of sources because, apparently, there are all sorts of unexpected ways that this can pop up. It definitely removes tax liability, but can also provide further protection from creditors and in the event of being denied loans or something. My D is a senior and has her sights on grad school next year. Unfortunately, we can’t pay for that without some loans, so I want to make sure we have a leg to stand on if there is a problem. I am so disheartened by all of this.</p>