<p>Does CMU use a cap either on home equity or home value for financial aid purposes?
Thanks.</p>
<p>YES. THIS IS A GREAT QUESTION.
Does CMU account for where you live?
How <em>DOES</em> CMU use home equity?</p>
<p>Fantastic question.</p>
<p>CMU uses the FAFSA model-- of which home equity is not a factor in 2011.</p>
<p>However, if you have several homes – those other than your primary residence are considered assets and would be factored into your EFC.</p>
<p>You can run the FAFSA model at the fafsa website and see how things play out.</p>
<p>Some schools using the CSS Profile (Of which CMU does NOT do) ask about home value and in fact it does play a role.</p>
<p>Thanks. What concerns me is that CMU also requires the CSS Profile, which does ask about home equity. Do they not consider it, even with the Profile?</p>
<p>CMU is indeed now using the Profile? !!
Wow, didn’t do so in the past. This is absolutely new to the process and so there’s no experience to share on how home equity factors into CMU’s model (which was quite transparent the past few years).</p>
<p>Their model could have changed but in the past this was not a direct part of the the process. </p>
<p>You can submit a cmu financial aid estimate.
Reality- unless the answer is going to change your mind on applying, you’re going to have to wait it out to end of March and then you can share with us how home equity was a factor. Most interesting !</p>
<p>I spoke with admissions, and they do use home equity with no caps. It is treated no differently than checking, savings, mutual funds, etc.
So, submitting a financial aid estimate would not be accurate if you have significant home equity, as they don’t ask about it on the estimator.</p>
<p>well it’s still “new” in their modelling-- so anything is possible.</p>
<p>If they compared it to “checking/savings”, then the cap is 5% of parents assets into the EFC and 1/3 of student’s assets, and 50% of student earnings-- that’s the standard FAFSA model.
That said— how does one even post an accurate and verifiable home equity value-- no one could accuse you of under reporting-- the only objective data is the mortgage balance-- but “value” is subjective until a sale occurs. If your home may be worth $400k, write $300k – is that fair in today’s market…who knows?</p>
<p>An interesting change to the process.</p>
<p>I’m less familiar with the CSS profile of home equity and perhaps others who have applied elsewhere can discuss how much different the CSS EFC is to that of a FAFSA EFC-- all I know is that CSS is higher on the EFC in general.</p>
<p>Try posting this ? on the general financial aid threads to see how home equity impacts an EFC in the CSS model.</p>
<p>Let us know what you learn.</p>