<p>My daughter has some Israeli bonds that will be worth $2600 when they mature, BUT she has already used them in advance to buy a used car (borrowed from us). How do we treat these on her fafsa form? They really are not an asset to her anymore.</p>
<p>I would think that as they are still actually an asset held in her name that for FAFSA they would be a reportable student asset at their current value. Assets can be reduced in value by debt against them, such as a mortgage against real estate or a margin account against stock. But those are legal agreements where if the asset is sold the owner will only actually receive the value less loan. This asset is still in your daughter’s name and will be paid to her in full even if she then pays it to you. I don’t think a parent loan would be allowable to reduce the asset value for FAFSA.</p>
<p>When will the bonds mature? You only need to report their current value if you were to sell them at the time you fill out FAFSA, not the face value at maturity.</p>
<p>I agree that this is a student asset. Student debt is not reportable on FAFSA.</p>