<p>My parents are the cosigners to my brother's student loans. Do these count as debt in my parent's net worth question on FAFSA (question 92)?</p>
<p>Net worth doesn't take any debt into consideration. Read the instructions carefully & only list the things you are being asked to list. Net worth only looks at what you HAVE, not at what you owe.</p>
<p>The only debt that is taken into consideration in FAFSA is debt directly against a reportable asset. For instance a mortgage against a second home, or a margin loan against a stock account. These type of loans actually reduce the value you own of the asset. No other debt is taken into account.</p>
<p>I tried to tell my Dad this before but he doesn't accept it. Even now he doesn't accept it, even though I said it was 2 parents that said this (I assume you're both mothers based on your usernames?).</p>
<p>He wants to call the FAFSA people tomorrow.</p>
<p>I am a financial aid officer (in addition to being a mom!). Swimcatsmom might as well be a financial aid officer!! :)</p>
<p>"Worth of your parents' investments including real estate." For real estate, you would take worth - amount owed on mortgage. Other investments include current worth of stocks, bonds, CDs, etc. </p>
<p>How does your dad think he would include a co-signed loan? Does he think he can deduct the amount of the loan from the worth of his other investments? The answer is no.</p>
<p>kelsmom is a Financial Aid Officer.</p>
<p>What</a> is your parents' net worth of current investments?</p>
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This field cannot be left blank.</p>
<p>The net worth of your (and your spouse’s) current investments is the amount left over after deducting the debt from the value of the investment.</p>
<pre><code>For example: You (and your spouse) own an investment property valued at $100,000, however, $75,000 in debt is owed on the property. The net worth of the investment is $25,000 ($100,000 – $75,000 = $25,000).
</code></pre>
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<p>
[quote]
Investment value means the current balance or market value of these investments as of today. Investment debt means only those debts that are related to the investments.
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<p>He should call FAFSA if he needs clarification. Unfortunately he will discover that the only debt FAFSA takes into account is debt directly against a reportable asset.</p>
<p>Swimcatsmom, I was looking for that link but couldn't find it. You beat me to the punch.</p>
<p>Have your dad call the FAFSA helpline. Perhaps if he hears it directly from THEM he will believe it.</p>