home equity vs savings on CSS profile

mom2012and14
Sun, 25 Dec 2011 23:44:31 +0000

Parents savings are capped anyways via the FAFSA model.

It’s too late to move all your money for 2011, as you earned interest and that will show on your 1040.

When you say home equity -are you suggesting taking all your liquid assets and paying down your mortgage? Most financial planners would tell you that’s risky and you should keep 6-18 months of cash reserves.

In any event only 5% of parental savings are the max that would feed into your EFC via FAFSA. That said, if you are sitting on a million dollars and paid off your house-- it’s still in your net worth.
CSS Profile looks at net worth -not just liquid assets .