<p>Home equity = fair market value minus mortgage. FAFSA does not consider home equity an asset, but that is only for Federal funds. Institutional funds are distributed using information on the Profile. I can’t think of any Profile school that don’t count home equity as part of assets (in addition to savings, checking and investments); although some schools do cap home equity, for instance, S:</p>
<p>[FAQ</a> : Stanford University](<a href=“http://www.stanford.edu/dept/finaid/site/faq/index.html#faq_2]FAQ”>http://www.stanford.edu/dept/finaid/site/faq/index.html#faq_2)</p>
<p>There is no such wording in the new Y FA initiative:</p>
<p>[Yale</a> University Financial Aid > Our Philosophy and Policies](<a href=“Welcome | Student Financial and Administrative Services”>Welcome | Student Financial and Administrative Services)</p>
<p>However, it is possible that they cap it, I’ve just never seen anything in writing one way or the other.</p>