Hi all,
My family just bought a house not long ago, we are still paying for the house. I want to know if my family decides to put my name for the ownership of the house along with my mother’s(joint tenancy). Will it affect the amount of financial aid I receive(FAFSA, GA Hope/Zellmiller)? And how much effect there will be if the house is fully paid. Value of the house: 140K
Why does your family want to put YOUR name on the title of this house? Do YOU understand the financial implications of this in terms of the mortgage, etc?
Are you applying to colleges where the Profile is used? If so, that $140,000 will be viewed as an asset…regardless of the ownership. If you own a share, I would,think your share would be listed as a student asset.
If you are applying to colleges that use ONLY the FAFSA to determine financial aid eligibility, your primary residence is NOT considered as an asset…at least for your parents.
Assets own by students will increase the EFC by roughly 20% of the asset. Assets own by the parent will increase the EFC by approximately 5-6%.There is some limited asset protection level. For FAFSA, the parent share of equity in the primary home is not counted. Not sure about the student’s share. For the profile, every school is different.
In general, shifting assets to a student applying for aid is likely to be a bad idea for many reasons.
If the student has equity in the student’s primary residence, that is not a FAFSA reportable asset.
This poster was inquiring about primary home equity which is NOT used on the FAFSA as an asset…at all.
…but if he doesnt live there and its in his name it could be considered an asset. If not, parents could just transfer assets to their kids via their home equity.
Is that the intent here ?? I dont know why any parent would title their house in the childs name.
If he is a college student, his permanent address is the home of his parents. In this case it would be his home as well.
I think this poster needs to understand WHY his parents want to include him…and what other implications this might have for him…even down the road.