<p>EK, not all colleges will use the assessed value of your house, so it might not be a big factor for financial aid. My daughter's college uses the Federal Housing index -- if you have been in the house for awhile with no major improvements, this can result in a much lower assessment. You can find this here:
<a href="http://www.finaid.org/calculators/federalhousing.phtml%5B/url%5D">http://www.finaid.org/calculators/federalhousing.phtml</a></p>
<p>If that figure is lower than your assessed value, I would suggest that you run the figures again online with the "Minimum Derived Value" and see where that leaves you.</p>
<p>Sounds like your book club friends are in for a rude awakening down the line. ;) My poor son supported himself for 3 years and still didn't qualify for financial aid when he went back to college at age 23, even though he had lived in different cities from me and I hadn't claimed him as a dependent after age 20. Rather perversely, his sister started college that year and I got the benefit of the 2-in-college increased financial aid award -- so his sister's grant was increased by $3600 (the amount of his in-state tuition). I offered him the money but he wouldn't take it -- some kind of pride thing about managing everything on his own. So <em>he</em> was independent, and I got the extra money. </p>
<p>Fortunately for him, he is 24 now and after spending all his money this year, has a Pell grant coming next year, plus both need based and merit money for next year, plus an Americorps benefit -- so he will have close to a free ride for his senior year and says he will come out debt free in the end. Meanwhile, I have the bite of the extra expense for next year for his sister. Scrambling now, because my d's college doesn't give the financial aid info for continuing students until July, but the payment for fall semester is due August 1 with hefty fees for late payments.</p>