FourOaks Posted March 8, 2012 Share Posted March 8, 2012 A comment in that thread regarding home mortgages has really piqued my interest. We were told that on the FAFSA home ownership does not count. Therefore, if one has money in an account and a mortgage, one should put the money into the mortgaged because the FAFSA will be better since the home does not count against you as the money in the account does. Is this NOT true? Since we heard that, we've been planning based on that information, so if it is incorrect, could someone please tell me what IS correct? TIA Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted March 8, 2012 Share Posted March 8, 2012 FAFSA does not ask about mortgages or home equity, but individual colleges may require additional financial information that does. A number of private schools require the CSS Profile which asks not only about mortgage and home equity but retirement accounts. Quote Link to comment Share on other sites More sharing options...
FourOaks Posted March 8, 2012 Author Share Posted March 8, 2012 Wow, that definitely does change things. I had no idea about the private schools asking for additional information and taking that into account. Thanks. Quote Link to comment Share on other sites More sharing options...
FaithManor Posted March 8, 2012 Share Posted March 8, 2012 FAFSA does not ask about mortgages or home equity, but individual colleges may require additional financial information that does. A number of private schools require the CSS Profile which asks not only about mortgage and home equity but retirement accounts. This is why the mortgage situation counts against us in the private U or LAC situation. We might do better with one that doesn't require the CSS, but we will likely fair very poorly or the ones that do. Faith Quote Link to comment Share on other sites More sharing options...
In The Great White North Posted March 8, 2012 Share Posted March 8, 2012 Here's Harvard's Net Price Calculator: http://npc.fas.harvard.edu/ Notice it includes all assets. If you play around with it a bit, you can see the effect of your home equity (or other assets) on your estimated pricetag. Quote Link to comment Share on other sites More sharing options...
FourOaks Posted March 8, 2012 Author Share Posted March 8, 2012 I'm really upset now because my kids will be seeking private schools. I've been under the impression this last year that our house and any retirement would not count because the financial college planning man said it doesn't count on the FAFSA. Never did he mention that private schools would require something different. Back to not being able to pay for college. :sad: Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted March 8, 2012 Share Posted March 8, 2012 I'm really upset now because my kids will be seeking private schools. I've been under the impression this last year that our house and any retirement would not count because the financial college planning man said it doesn't count on the FAFSA. Never did he mention that private schools would require something different. Back to not being able to pay for college. :sad: Well, let's calm down. It may turn out that the private schools to which your students apply will not even use the Profile or consider home value. You may luck out. But--it is worth mentioning that one reason some people find the FAFSA EFC (Expected Family Contribution) to be so shocking is that it assumes parents have been saving for college since birth whether or not the assets are apparent. This is why some people reel when the view the EFC as a percent of family income. FAFSA assumes that parents have had a wage pattern based on current income and that allocations for college were made or should have been made. One regular poster on these boards mentioned that her college savings strategy included paying off her mortgage early to have more cash available later to pay for her sons' tuition. Given that savings accounts are paying low interest and the stock market is volatile, it seems like that was a good plan. About those "free rides". Someone has to pay. As tax payers, we contribute to the budgets of state schools. As alumni, my husband and I contribute to the annual fund at the private colleges which educated us. I am happy that financial aid is available to the deserving. The problem is that some parents feel they don't have to contribute anything. Is that fair? Another thing: look for schools that give merit aid. Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted March 8, 2012 Share Posted March 8, 2012 I guess I'm wondering how the retirement comes in.My gov't employee friends have their pension essentially hidden from this Harvard Calculator; my private industry friends have the entire 401K assumed available as part of the assets. So essentially, if you work for the gov't, spent every penny, you get more assistance than a person who worked for private industry and put away an amt for retirement equal to what the gov't worker will be getting. Am I reading that wrong?? I'm missing something here. Is your point that anyone with an old fashioned pension (as opposed to a 401K) gets a break? Some companies offer Cash Balance accounts as opposed to the old school pension. I don't think that these accounts go into the calculator either. Quote Link to comment Share on other sites More sharing options...
creekland Posted March 8, 2012 Share Posted March 8, 2012 Whether or not a school uses the Profile varies. Out of 7 private schools my guys have applied to, 2 used the Profile, 1 had their own (or we could have used the profile), and 4 just went with the FAFSA. Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted March 8, 2012 Share Posted March 8, 2012 (edited) I guess I'm wondering how the retirement comes in.My gov't employee friends have their pension essentially hidden from this Harvard Calculator; my private industry friends have the entire 401K assumed available as part of the assets. So essentially, if you work for the gov't, spent every penny, you get more assistance than a person who worked for private industry and put away an amt for retirement equal to what the gov't worker will be getting. Am I reading that wrong?? Clarification: I pulled out the CSS Profile that we previously filed. It does ask if the parent has a civil service, state sponsored or military retirement plan. It asks about other tax-deferred retirement plans including IRAs, Keoghs, 401-Ks, 403-Bs, etc. Parents provide current balances as well as the amount that will be paid into the plan for the current year. For general information I'll also note that the Profile asks for the current market value of the parent's home, the amount owed on it, and the purchase price. We filled out twelve pages of specific financial information. I thank the Lord that I only had to do this once. Some people get to experience the joy annually. But back to Heigh Ho's question: I do not think that government employees get a break. The Harvard calculator is a highly simplified version of the financial form that one must file. Edited March 8, 2012 by Jane in NC Quote Link to comment Share on other sites More sharing options...
Barbara H Posted March 8, 2012 Share Posted March 8, 2012 https://profileonline.collegeboard.com/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv Here is a list of colleges that require the CSS/Profile. Keep in mind that they don't all look at the same information in the same way, but this will give you an idea if you will need to fill it out. Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted March 8, 2012 Share Posted March 8, 2012 https://profileonline.collegeboard.com/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv Here is a list of colleges that require the CSS/Profile. Keep in mind that they don't all look at the same information in the same way, but this will give you an idea if you will need to fill it out. My son's college is on the list but they do not require it of all students, only Early Decision. As Creekland mentioned, others have their own alternative or allow applicants to use the Profile. Quote Link to comment Share on other sites More sharing options...
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