<p>We have some gold coins, which we have no intention of selling. Do they count as a commodity?</p>
<p>Also, I understand that consumer debt and car loans don’t count against your net worth. What kind of debt does? </p>
<p>Thanks!</p>
<p>Only debt directly against a reportable asset is taken into account in FAFSA. For instance a mortgage against a property other than the primary home (the primary home is not a reportable asset so the mortgage against it is also not reportable), or a margin loan against a stock account. These types of loans actually reduce the value you own of a reportable asset so you report the net value. Other than that no debt is considered by FAFSA.</p>
<p>Thanks swimcatsmom. So as far as debt is concerned, we’ve got nuttin’.
Now as soon as I find out about the gold, and about how many shares we have in our younger kids’ UGMA accounts I can wrap this thing up.</p>
<p>I don’t think you report the value of your younger kids UGMA accounts on FAFSA. Only those belonging to the student who’s FAFSA is being completed.</p>
<p>[What</a> is your parents’ net worth of current investments?](<a href=“http://www.fafsa.ed.gov/fotw0910/help/fotw43e.htm]What”>http://www.fafsa.ed.gov/fotw0910/help/fotw43e.htm)</p>
<p>Just a few gold coins sounds more like a personal possession (non reportable) rather than reportable commodities.</p>
<p>Gold itself is generally considered a commodity. It has industrial uses, although it is mainly used in jewelry. But you have gold coins. When gold is turned into a coin it moves away from being a commodity as it has taken on a specific use: a coin. However, gold coins are still gold and can be easily converted into other uses. I guess it depends upon how you yourself think of or use the coins.</p>
<p>optional reading:
A coin can have fiat value, commodity value, and collectible value. Consider a 1961 quarter that contains silver. It’s fiat value is 25 cents. In 1979, the price of silver skyrocketed to over $30/oz. Millions of silver quarters were sold to dealers who sold them to smelters because their commodity value was far greater 25 cents. However, an uncirculated 1961 silver quarter that had a collectible value greater than its commodity value would not have been sold to a smelter. Typically, but not always, the value of gold coins is governed by the its value as a commodity.</p>
<p>Thanks for the info about the gold. We were going back and forth about that. </p>
<p>About the younger kids’ UGMA accounts, I thought we needed to include them because of this in the instructions: For a student who must report parental information, the accounts are reported as parental investments in question 92, including all accounts owned by the student and all accounts owned by the parents for any member of the household.</p>
<p>So I guess now the question is, who “owns” the accounts? The parents, or the kids?</p>
<p>I believe UGMA accounts are owned by the kids. If they were doing their own FAFSAs they would have to report the UGMA as a student asset (you may want to think about that in advance as 20% of student assets go to the EFC).</p>
<p>OK, I just got the final answer from FAFSA. She says that since we are listed as the CUSTODIAN that the kids are the owners so it doesn’t count as an asset for us. swimcatsmom, you’re awesome. Thanks!</p>
<p>If your student is dependent and has a UGMA 529 plan or owns a 529 plan directly, it gets reported along with parent assets for FAFSA this year. The student’s other UGMA accounts are reported as student assets. UGMA accounts for sibs are not included. At least that’s how I’ve been reading these instructions.</p>
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