Assets for CSS Profile

Paying for College
1

On CSS I’m wondering how this is handled:

$750,000 house
$2500 mortgage
$450,000 owed

vs

$300k house paid off

Is it seen as only $300k equity on the house with the mortgage? Do they calculate the impact of the mortgage at all?
Is it the same as having a $300k house that’s paid off?

For financial aid purposes I’m trying to decide if it will help to buy another house. We have a paid off house around $300k. Would our fin aid picture change if we bought a $750k house and had a mortgage? The cash flow per month is very different.

Would it be like $300k in equity, but $450k owed? Therefore you are -$100k? Or does the equity only matter?

I’m really looking at buying a rental property but the concept stays the same in my mind.

Thanks

2

What college? Colleges treat PRIMARY home equity in a variety of ways.

Rental property? The equity is an asset, PLUS the rents are income.

Some schools will view rental properties as a choice, and might weigh their value more heavily.

Are you hoping to get need based financial aid for one of your kids?

I hate to ask this…but if you can afford the down payment for a rental property…do you really qualify for need based aid?