<p>My parents have several thousand dollars of credit card debts, can I include that in FAFSA? If so, where?</p>
<p>There’s no place on the FAFSA for that. It’s not considered in determining your FAFSA EFC.</p>
<p>That’s why some people will pay down debt with cash, since your cash on hand is considered for FAFSA purposes.</p>
<p>The only debt that is taken into consideration by FAFSA is debt against a reportable asset. For instance a mortgage against a second home or investment property, or a margin loan against a brokerage account. This is because these reduce the value of the equity you own in these assets. No other consumer debt such as credit card debt, car loans etc are considered by FAFSA.</p>