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<p>For FAFSA purposes, if your income is that low AND you have one of the other qualifying things (dislocated worker, file 1040A or EZ, qualify for a means tested benefit)…I think you might qualify for the simplified needs test as your income is below $50K. (Swimcats…is that the right number?). If that is the case, your assets would not be reported.</p>
<p>BUT if not…timing is everything. If you are required to report this asset, you would be better served to buy the house BEFORE you submit your kiddo’s financial aid applications…or wait to sell the house until AFTER you submit the financial aid applications.</p>
<p>The simplified needs test applys ONLY to FAFSA…not to the CSS Profile which will likely consider that $150K as an asset. </p>
<p>Simply put…you “plan” to use it to buy a house. BUT until you do, the reality is you could use it for any purpose or just save it. It would therefore be considered as a financial asset available for college tuitions purposes.</p>
<p>P.S…for CSS Profile schools your home equity (must be at least $150K) could be counted at least in part as an asset anyway.</p>