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Will having a lot of debt hurt my financial aid eligibility?

ichweisesnichtichweisesnicht 0 replies1 threads New Member
So, my mother's income is around $12600 a year, and she's the only person working in my family of five. All the food, electricity, mortgage, debt and other expenses make up around $15800, which is way more than my mom's income. Will this look suspicious?
She has two houses to pay for, and we do not rent the second house. The first one, in which we live, is in $9500 debt. the second one is in $19000 debt. Maybe I should just exclude the second house?
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Replies to: Will having a lot of debt hurt my financial aid eligibility?

  • thumper1thumper1 75487 replies3310 threads Senior Member
    edited November 12
    You can’t just “exclude” a second house on the FAFSA. How much is that house worth? How much is the balance of the mortgage? Those are the important questions bout that second house.

    If you owe $19,000 on that second house...but it’s worth $50,000, then your equity in the house would be $31,000.

    How IS your mom paying her bills if her income is less than her actual expenses?

    It is possible that you might qualify for an auto $0 EFC if you meet the requirements. Your family income seems low enough there are other qualifiers you must meet as well. Do you get food stamps or any other government assistance? Free or reduced lunch?
    edited November 12
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  • mom2collegekidsmom2collegekids 84191 replies1035 threadsForum Champion Financial Aid, Forum Champion Alabama Forum Champion
    Your income is low enough that assets probably won’t count on FAFSA.

    Your expenses won’t be considered or known, so nothing will be “suspicious”.

    If assets aren’t ignored, then the 2nd house will have to be included. Your mom’s name is on the title so it can’t be just left off.

    Why not rent out the other house to bring in some income?

    If your expenses are more than income, how are you managing?
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  • c3memedc3memed 26 replies3 threads Junior Member
    super helpful
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