<p>My parents are insisting that I state their credit card debt in an "additional information" box on the CSS (?) financial aid form. Yes or no? I have a bad feeling about this - their credit score is fine, I know, but they still have a lot of credit card debt. Will this make it harder for me to get a loan if I put this in the information, or is it necessary?</p>
<p>Bah, finances are embarassing.</p>
<p>The financial aid people do not generally care about credit card debt unless there are extenuating circumstnaces- i.e. $100k on credit cards to pay unusual medical bills, etc.</p>
<p>If it is just basic consumer debt I don't believe they will consider it at all.</p>
<p>Credit card/ consumer debt does not matter in the financial aid process. and will have no impact on your EFC, I think the CSS profile even mentions it.</p>
<p>however- they could take out a homeequity/refinance mortgage and pay off their credit cards- and it would also lower their equity in their house and more accurately reflect available income for tuition.</p>
<p>But yes I agree with above posters- income is looked at- and assets are looked at somewhat- but debt, especially consumer debt- is not going to sway the finaid office.
( you still should be eligible for a stafford loan - I don't recommend taking out over the maximum)</p>
<p>Unusual medical expenses and educational expenses are considered, but regular consumer debt is NOT, as everyone has already stated. As was mentioned, they could roll their credit card debt into a home equity/refinance mortgage, which could reduce their equity for Profile consideration (tho FAFSA does not pay attention to home equity at all, as far as I know).</p>
<p>I checked with some colleges and they said they dont care about credit card debt. However when i told them the amount of debt my family has they told me to put it on. We have like 200k in credit card debt. My mom is SUCH a shopaholic :P</p>
<p>jk, in reality it is more like my father took out the 200k from 0% credit cards (a billion of em lol) and then put the money into a bank. Free interest on the 200k pretty much and we have an extra income of like 9k. He works in finance anyway so it isnt really much work for him.</p>
<p>Credit card debt could reduce amount of savings down to absolutely zero. This was the case with me as I filled out my FAFSA a last year.</p>
<p>It would seem the credit card debt could offset the assets which should appear in the bank & listed as such on your FAFSA if your parents are doing what you wrote.</p>
<p>Credit card debt doesn't "offset the assets" in the eyes of the FAFSA or Profile. And credit card debt doesn't "reduce the amount of savings down to absolutely zero" (whatever that means).</p>
<p>So-- by taking out 200K in cash advances from credit cards and putting the money in the bank, your Dad has increased his liquid assets tremendously, which will adversely impact your chances of getting financial aid. Bad move, financial-aid-wise. The financial aid folks will consider much of that 200K as available for college costs.</p>
<p>I was an adult student when I filled it out, but it said to take out take assets minus debts, and if you owe more than you own, put "zero" which is what I did.</p>
<p>You're confusing two different things. The net worth of a particular asset or investment is the value less any debt on the asset or investment. That sort of debt is reportable.</p>
<p>Your net worth (which isn't factored into the formula anywhere) would include an offest for personal credit card debt.</p>
<p>But personal credit card debt isn't reportable anywhere on the FAFSA or Profile forms, and can't be used to offset assets. From the FAFSA instructions:</p>
<p>"...personal debts such as credit card debt cannot be reported."</p>
<p>Well I had no savings to speak of regardless, but I stand corrected nonetheless.</p>
<p>wow dude, that's smart
I'm going to do that lol</p>