The fact that the parents don’t claim the student as a dependent on their tax return is irrelevant for FAFSA. The parents can still use the IRS Data Retrieval Tool to import their tax information into the FAFSA. If their income is low enough, they won’t be asked to provide asset information on the FAFSA. Profile schools may very well want asset information, though, so the parents need to be prepared with a value for the overseas property. I doubt that schools will allow it to be ignored even if the parents say that ownership is in dispute (but you can always ask your top school that question so you can complete Profile properly). Support provided by others to the parent is not required to be reported on the FAFSA - for example, if the relative gives the family money to help with food, rent or other things, that is not reported on FAFSA.
Thank you for the clarification about the IRS Data Retrieval Tool.
@KINGSTER123 your parents can (and should) use the IRS DRT when they complete the FAFSA form. I’m assuming they live and work in this country and file a U.S. tax return. Do they?
So when I did CSS Profile and IDOC - it was based on thing listed on my tax return. So bank accounts, brokerages, etc.
If there’s no income from the property or it’s not referenced on the tax return, where will it come up that he’s even asked?
My bigger concern is - he said he’s low income and now we have an outside source helping. On top of that, he looked up two schools - Rice and USC - one was covered and the other if I remember correctly was like $15K.
I’ve been pushing QB - just as a - he wants a top school and best I can tell it gives you far more ED chances.
But how would he “really” calculate his need. Perhaps the #s he’s gotten - thinking Rice and USC will meet need - are flawed. Maybe he needs to chase the full ride merit scholarships out there??
How would the schools know to ask for this info - if it’s not requested on CSS? Maybe there’s a question about outside assets - I forget.
One thing I know for sure - he’s mentioned numerous times top schools and loans if needed - his parents will take.
That scares me - when worst case he’s got in-state Washington State or UW Bothell - and best case UW.
Just seeking to better understand - you have a great handle on all this.
Thanks
It’s called being honest. The equity in real estate is not listed on your tax return. But if your family owns real estate other than your primary residence…it MUST be listed as an asset on the Profile…and on the FAFSA IF the parents are required to list assets.
You must be honest when completing these forms. Not optional…MUST be honest.
I’m asking because I don’t know if there’s a value - if it’s in dispute or if there’s a lien - or if it’s perhaps in a foreign country and it’s being confiscated, etc.
Can’t tell - not suggesting dishonety.
When I read about what the colleges require, it’s always “parents” - and not who’s claiming you and it’s usually income related.
While I did the CSS, I have no additional outside interests - so no property other than my home.
Hence the nature of my question…not to promote dishonesty.
@KINGSTER123 - can you describe the property situation better for everyone? Value, status, where it’s located, what might be the dispute?
@kelsmom can clarify…but if assets are required, it doesn’t matter if they are located on the moon…they MUST be listed.
When I worked at a large urban public university, I dealt with many families who were low income and received financial help from their families. In particular, I saw a lot of adult sons assisting their immigrant mothers. Financial aid officers see these situations and understand. If the family is asked to explain how they live on such a low income, they will just provide an explanation. If the explanation includes relatives providing financial help, the relative’s financial assistance will not be considered in determining the family’s ability to pay for college.
Yes, that is correct. The value of the asset will need to be reported, with the value converted to US dollars.
Yeah they do work and live in the US.
@KINGSTER123 thats good. Then assuming they filed their taxes, they can use the IRS Data Retrieval Tool when they complete your FAFSA form. They will need their tax return and also any real estate, and asset information for completion of the Profile if you have any colleges requiring that.
This is a bit off topic to this thread, except that finances do impact college choices.
I do think that looking at schools where you would garner significant merit aid is a worthy idea.
uhh, the property is worth more than 5 million dollars, but my family kind of gave up on it because it’s been disputed since the past like 20 years. Honestly, my parents consider the property to be “lost” (Located in Asia) and it provides no income to my family (if I haven’t said that before).
Your family gave up on a $5 million dollar property? Could it be sold?
But this is why I was asking - if you have a $5 million asset, you will not receive need aid from any college in the country - so your plan of applying to top 100% need and need blind schools won’t have merit. You may get in to one - but you’ll also get the $80K+ annual price tag that comes with it.
And no no no you should not take out $300K+ in loans.
You have UW, WSU, WWU. You have schools like Arizona with huge merit; Alabama and UAH, MS State, Arkansas, Mizzou, etc. Fine schools. Of course, you’d want to check the diversity stats if that’s an issue for you, etc. There’s the WUE schools, etc.
Lots of great choices!! Lots of great merit!!! You even have a school like Troy - again, not saying you should go there but you’d get free tuition and room. There are others like that.
It’s not the name…so you’ll just work harder to get your foot in the door.
You might try calling a school or two and talking to an aid officer - but this is my fear.
Nope, it can’t be sold. It was illegally occupied and we can’t do anything about it. There is a lot of politics and corruption which made my parents move to the US.
I would not considered it as asset. It sounds iffy at best.
If they legally relinquish ownership it won’t be considered an asset. If they are really giving up on it then if will financially benefit them to formally do so. Would they be willing?
Honestly, they probably would. I could see my parents do that.
Worth a discussion with them. If not as others have mentioned it will need to be disclosed and will likely materially impact your ability to receive financial aid.
If they keep this, it could affect your ability to get need based aid.
5.6% of $5 million dollars is way more than the cost of attendance at any college….right? That’s about the %age that this asset would add to your family contribution.
OTOH, if your family really had this asset at its value, you would be able to sell it and more than be able to live and fully fund any college.
But merit aid…usually that does not take family finances into consideration.
If the parents are unwilling or unable to legally relinquish the property: For FAFSA purposes, if the income is low enough, the asset wouldn’t be reportable no matter how much it’s worth. If the income is high enough that it must be reported, and also for the Profile, the student can file a special circumstances appeal for professional judgment from each school.