We have one in college and received no financial aid. Getting ready to launch S25 in about a year and a half. I know that having 2 in college may help a little bit in getting a some financial aid, but I have another question. Our house will be paid off in 2.5 years. Would taking out a 2nd mortgage for needed home improvements improve our chances of getting more aid? Just wondering if a higher home debt and not having the house paid off while S25 is still in college would increase the possibility of universities throwing just a little $$$ our way. Thanks.
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Fafsa changes no longer provides a boost for those with more than one in college (we’ve had three for several years and have yet to receive anything, we also still have a mortgage that we could easily pay off with money we set aside for home improvements that were paused during COVID). Many families are in the donut hole of not being eligible for FA and having to take out loans. So many.
FAFSA does not consider debt nor does it consider housing value, so a second mortgage is irrelevant for FAFSA purposes.
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Just take out a heloc and pay for college. It sounds like more mortgage debt won’t help with FA.
Also, watch the timing on any equity you take out of your house to pay for college or home improvements. If that cash is in your possession when you fill out your FAFSA, voila! more $$ you need to report & a higher SAI for that year than if you had done nothing and left it in the house.
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You can hunt for merit - lots of universities offer scholarships for rigor&GAP, for test scores, talents, etc…
Also, CSS colleges do take number of children in college into account.
Thanks all for the information. Very helpful.