Are the questions regarding “student’s home” aimed at students who live separately from their parents and actually own the home that they use or should I state the details about the home that I live in with my parents even though these have been mentioned in my parents’ assets section?
Are you doing the Profile form for international students?
I guess so, yes.
I’m not familiar with that version of Profile. Do you now if there’s a link to the form or the questions that you are having trouble with? Seeing the exact wording and knowing the context would be helpful.
This is the question I am referring to:
What is the current market value of your home? - SA-120B
Then, there is the question regarding the year in which it was purchased and a question asking whether I owe anything on that home. As I understand it, perhaps these questions refer to students who live separately from their parents.
Also, a separate question - I own 25% of land that has a portable building on it that people rent. Since I am underage, my father collects the 25% of rent on my behalf. Should I report the amount of rent as a profit that my father earns (that is, in my parents’ assets section on the CSS) or should I report it elsewhere (though I couldn’tn find any such question in the student’s assets section). Also, should I explain this situation in the explanatory notes so that the financial aid officers have a better idea of the fact that the market value I report on the land that I own is just a % of a bigger estate and that my parents receive rent from that or would it be a mistake to go into so much detail in my financial aid application (since basically the 25% share of rent counts as an asset on my name and perhaps the officers would like to use it to contribute to my tuition)? Thank you!
If you, the student, do not own your home, than there is nothing to report here. I assume that in the parent asset section, there are similar questions that you would answer for any home that your parents own.
The rent is reported as income, and also as an asset if it is still on hand (i.e. in a bank account) at the time that Profile is filed. Since you, the student, own 25% of the land, 25% of the rental income would be reported as student income, and it is your asset if it is on hand when Profile is filed.
Take the current fair market value of the land, and report 25% of that amount as a student asset. You can make an explanatory note that this amount represents 25% of the value of a piece of rental income producing property, if you think that will provide clarity. Remember, with this 25% share, you have student income, and you have student assets, both in the value of the student’s share of the property and in any rental income to the student that is still on hand when Profile is filed.
Thank you for the clarification, BelknapPoint!!
I went through the Student’s income questions this morning as well, however, I didn’t see any question mentioning rent. There was a question asking whether I had earned any salary as an employee, for instance. Perhaps, I have missed it, I will check again tomorrow…
I guess I feel I should clarify the situation in the notes since the land I own is just 25% so, in case the admission officers decided I could contribute to my tuition using the property, I would like to make it clear it is not an entire property that I use so I can’t potentially sell it at that point, for example. I suppose they would only be interested in the rent I get from it in that case?
Actually, I have another question about income vs. expenses - I understand that colleges take into account the savings that I and my parents have as well as the value of any property that we own. In my case the savings + income are under $70,000, however, if we add the approximate estimate of the land’s market value, the amount of income/assets get over $70,000. My parents are both unemployed and the majority of our net income (that is, rent) goes for expenses like utilities, food, etc. including the share of rent I get. In that case, would the financial officers want to use this share of rent that I get + my savings or would they leave the rent out of it (since, essentially my father collects it, my parents don’t work and also, the rent covers a large portion of our expenses)?
There probably isn’t a specific question about income from a rental property. There are so many different ways to receive income that there can’t possibly be a specific question that covers every scenario.
Maybe. It probably is a good idea to mention that you are only a minority owner of the property, so they know that it would be difficult, if not impossible, for you to sell it in order to help pay for college.
They will want to look at everything – your income (including your share of the rental income), your assets (including your 25% share of the property and any income you have in the bank or invested), your parents’ income (including their share of any rental income), and your parents’ assets (including the home you and they live in and any other real property). How they use all the income and asset figures in determining need-based financial aid depends on the formula that each school has.