FAFSA: Property Investments

Paying for College
1

<p>I just completed my first year of college away from home as an out-of-state student in California. I applied for the FAFSA but at the time, my EFC was $46,000, and my tuition/fees came out to $43,000.</p>

<p>I figured what had made my EFC so high were the “investments”. I understand that included in investments are rental properties. My family owns the home we live in, which I know is not included into the FAFSA, and a second property which is rented out. However, my parents do not earn a lot from their own jobs and the rents are just enough to pay off mortgage for that home.</p>

<p>Is there any way around this “loop hole”? What does the FAFSA label as the “equity” of a home?</p>

2

<p>there is no loophole for that. If you have investment property, equity is the amount it’s valued at - the amount you owe.</p>

<p>[Questions</a> About Your Finances](<a href=“http://www.fafsa.ed.gov/help/fftoc01o.htm]Questions”>http://www.fafsa.ed.gov/help/fftoc01o.htm) Look near the bottom.</p>

<p>here are the formulas for this years fafsa </p>

<p><a href=“http://ifap.ed.gov/eannouncements/attachments/0809EFCFormulaGuide.pdf[/url]”>http://ifap.ed.gov/eannouncements/attachments/0809EFCFormulaGuide.pdf&lt;/a&gt;&lt;/p&gt;

<p>to have an EFC of 43000, your parents must have a lot of rental income or alot of equity.</p>

3

<p>Even if you do get that waived about the only aid and OOS student would receive in CA is the Pell, ACG, SMART grants. There is not really much need based aid for OOS, CA kids can also get the Cal Grant</p>