Rental home

[Luis_Lopez]

I own a house in another city but I also rent a house in the city where my kids are going to high school. I plan to move back into my rental house next year before my child starts college. Can I claim as primary residence for financial aid?

[thumper1]

@Luis_Lopez

I also rent a house in the city where my kids are going to high school. I plan to move back into my rental house next year before my child starts college

The key is…where do your kids live? That is usually the place of residence for the student. And your kids are already living where the rental place is, right? This would give them instate status assuming they live in that state for whatever is required prior to starting college.

If you are a divorced parent, some states do allow the residency of the second parent to count as instate for tuition purposes.

I guess I’m confused what you are actually asking.

[Momofthree24]

Or are you asking if renting will allow you to hide the home you own as an asset when financial aid is being calculated?

[jym626]

And if your screen name is your real name, it would be advisable to reach out to the admins to see if you can change it, especially as there is some concern about exactly what you are asking.

[thumper1]

Here is how to change your screen name. You can do it yourself.

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[thumper1]

@Luis_Lopez

I plan to move back into my rental house next year before my child starts college.

If you want this rental home to be your primary residence, you will need to move BEFORE the financial aid forms are submitted. Otherwise, where you live will be your primary residence, and the rental one will be an asset…and you will need to list the equity plus any rental income received. Actually…for the academic year 2026-2027, you will be using tax year info from 2024…so that rental income will already be on your taxes, right?

@kelsmom

[kelsmom]

I won’t tackle the residency question, because that’s best discussed with the school. I will discuss the two-houses issue, from the standpoint of financial aid.

I am not certain that I have this right, but … the home in the city where your kids are currently living is a home you are renting to someone else, correct? If do, that is an asset, and you are required to report the value of that home (market value less any mortgage owed on it) for financial aid purposes. Any rental income would be included in your AGI, so that will also be part of the financial aid reporting (it will be automatically provided by the IRS when you do the FAFSA). Next year, if you have sold the house in which you currently live & take up residence in what is currently your rental home, you won’t report that home as an asset … but if you choose to retain the house you currently live in, that house will become an asset for financial aid purposes.

Basically, you report what is now, and if it changes in the future, you report what is at that time.

Your kids’ residency is completely separate from this, and as indicated previously, speaking to the school is your best bet.