<p>Swarthmore is a member of the 568 Group <a href=“Website”>http://568group.org/index.html</a>. Do read up a bit on these colleges. However, even with this attempt for consistency, things like a family business can be interpreted very differently, since some situations are taken on a case by case basis. The kind of business you have can make a huge difference in how it is assessed. </p>
<p>Most PROFILE school will use the value of non qualified annuities, many do not ask about the cash value of insurance polices but some do in supplemental questions. 529s are reported, and it depends upon the school as to whether a child owned one gets hit harder for that specific child over those owned by parents. None of these things other than the 529 are counted on the FAFSA, and the 529s are counted as parental assets regardless of child/parent ownership on FAFSA, and those owned by another sibling are not counted in federal methodology. </p>
<p>Sometimes for small business income, any depreciation and write offs are added to the business, and the net value of your business is counted as an asset. Many who feel that a business has no value because it is totally driven effort and has no sale have found that a value is assessed using some formula based on the income it generates. I do not know what that formula is and it can vary widely.</p>
<p>A student last year did not get much from Swarthmore because of a family business situation. Though he appealed, the school stood firm, and he was all set to go to UW instead because merit money and FAFSA EFC gave him a far favorable package. So he was pleasantly surprised when Carlton, a school not in the 568 group came up with a more favorable interpretation of the family financial situation and came up with more money that made it doable.</p>
<p>So no one can give you any answers about your business, likely not even Swarthmore’s fin aid employees because such businesses are assessed individually once all info is received with more questions forthcoming. I have also heard that Villanove has looked at small business income/value more favorably than peer schools in the fin aid process, but frankly, all of this is on individual anecdote. Until the schools have your info and have done their analyses, no one can predict the outcome. </p>
<p>You can play around with the NPC formula and see how differently a 529 is treated if it is in your student’s name vs in your name or siblings name. </p>
<p>Most of the time, from what I understand, cash values of insurance, like 401K and other qualified plan assets, are not taken into the formula even by those schools who ask for that info. </p>