Does it really matter? The mother already bought the house. The financial aid forms will need to be filled out with the values and accounts as they are on the day the forms are filled out. I think in almost all cases it is better to have the asset in a house than a bank account. In most cases, the house will not be included in family’s ability to contribute, so FA will be better.
The family had. $0 EFC…I’m not sure that the financial aid will be better with a house purchase…you can’t have n EFC below $0.
Most schools cap home equity at a certain %age of income. But some don’t. We don’t know what this school’s policy is regarding home equity.
But as noted…it is what it is…and the house is already bought.
It is very possible the family could still qualify for auto $0 EFC or simplified needs test even with a house purchase.
Sorry I was just going by the facts that were stated, the mom had been saving for a long time, the rent was getting too expensive, the $0 EFC. Saving that kind of money, it would take 20 years if you saved about $20,000 a year. Then add to that the rent, probably at least another $10,000 a year, then if you make under $50,000 to qualify for simplified needs test and assets not being considered, there wouldn’t be much left to live on.
If the family files its taxes with a 1040A, they get an automatic zero EFC on the FAFSA. A family that doesn’t itemize deductions and has no capital gains income can usually file a 1040A. (Nothing to do with the CSS but may explain the FAFSA EFC of zero.)
^^No, filing a 1040A with under $50k in income and one other special circumstance (free lunch, job loss, public assistance) get a simplified asset disclosure, not an auto EFC $0.
Old mom…wrongo. The family has to meet the income threshold for either auto $0 or simplified needs…and one of several other criteria…ability to file 1040A or 1040EZ, eligiblity for a means tested benefit, dislocated worker status.
I believe auto $0 requires an income of less than $24,000 a year. Simplified needs…less than $50,000 a year.