Last year my family had low income ($40000) but high assets. The assets include $1 million in properties, other investments, the primary home, car, 401(k), IRA and pension plan. How are the assets counted for determining need-based financial aid? — S.S. read more
Other investments are reported on the FAFSA, including bank accounts, brokerage accounts and investment real estate other than the primary home. A family can qualify for the simplified needs test, if the parents have an adjusted gross income under $50,000 and are eligible to file a simplified federal income tax return, such as an IRS Form 1040A or 1040EZ. read more
A home equity line of credit is not reported as an asset on the FAFSA or the PROFILE unless the borrower has pulled money from the line of credit and has not spent this cash at the time the financial aid applications are completed. read more