<p>My daughter will be going to college hopefully this fall. So far I have been renting. </p>
<p>But I have been considering getting a mortgage. To pre-approved, I had to increase my part-time work. This is where it gets interesting. </p>
<p>My mortgage advisor is advising that the increased income will help with the DTI (debt to income ratio). Such an increase in income reduces our eligibility for need-based aid. At some point, it seems to me that I am burning the candle from both ends…</p>
<p>So is it advisable to try to get a mortgage while planning for college? </p>
<p>It really only matters on the day you apply for FAFSA. If you have money you are saving for the down payment in an account, yes, it will go against you for financial aid. If you just started working the part time job, it’s your 2014 income that will be up and only your 2013 income is on the first FAFSA for fall 2014.</p>
<p>If you buy before filing the Jan 2015 FAFSA, I think you’ll be fine. Your income will be up a little, but I assume all the money you’ve saved will be invested in the house, and that won’t be on your FAFSA.</p>
<p>Well, increasing your earnings will be reflected in an increased Expected Family Contribution. But, many colleges don’t meet full need anyway – depending on the colleges you’re considering, it may or may not actually affect your financial aid.</p>
<p>Are the colleges your student is considering affordable for your family using the Net Price Calculators on the college websites? Try running the calculators with the new higher income and see if it changes at all.</p>