Hi. I had a financial aid question for everyone. My parents own a house and I was wondering what effect it would have on financial aid. Would I have to pay loans? Would my family have to pay from our own pocket? We own our place of residence. What exactly goes on when deciding financial aid when financial aid officers see that someone’s parents own a house? Thanks so much!
If your colleges use ONLY the FAFSA to determine need based aid awards…your primary residence is NOT mentioned…at…all.
If you apply to colleges that use the CSS Profile, some use the equity in your primary residence to a greater or lesser degree. Usually the equity used is capped at a %age of your family income. Some Proifle schools don’t use home equity at all. Some use a lower %age of equity than others. Some use a higher %Age.
Need based financial aid, however, is largely based on family income. So…what is that amount?
Most important…what can your parents pay annually for you to attend college. Ask!
Our income is below the poverty line and we are still trying to pay off the house. Also, exactly what is equity because I am told that we have no house equity?
Basically, my parents can not afford to pay for college. Our EFC is $0.
Equity is the value of the house minus any loans you have on it. So if the house is worth $300,000 and you have $200,000 in loans left…you have $100,000 in equity.
It sounds like your mortgage on your house is just about equal to what it’s worth…so you would have NO equity if that is the case.
What year are you in HS?
I’m asking…because if you qualify for free or reduced lunch…or SNAP or some other means tested benefit…AND have income below $49,999 for the year, your assets would not be counted anyway. This is called the simplified needs test…and is for fafsa.
There is no simplified needs test for the Profile.