If you have various debts that are unpaid, will it effect financial aid?

Paying for College
1

I have thousands of dollars in debt and I was wondering, does this effect my financial aid reward?

2

Schools do not take personal debt (credit card, mortgages, etc) into consideration when awarding financial aid. If you have unreimbursed medical expenses, they may take that into consideration, but it will not be $1 for $1.

3

Consumer debt is not factored into the financial aid equation. This includes your mortgage, car loans, credit card debt, department store credit cards, just about all consumer debt.

The only debt that might be considered…MIGHT…is unreimbursed medical expenses incurred in 2015 (if your stusent is applying now).

You may have noticed…the FAFSA and Profile do NOT have line items for consumer debt.

Neither do the college net price calculators.

This is because consumer debt is a personal choice…and is not factored into the financial aid equation.