We have a mortgage on our home, as well as a Home Equity Line of Credit in the amount of $150k. The HELOC is currently not in use. We use it periodically to buy and renovate flip houses. How will having an open line affect FAFSA and CSS financial aid calculations? Should we close the HELOC?
It won’t.
Only the amount that you owe will be of consequence because it will reduce the amount of equity you have in your home.
If you don’t owe anything on the day you file the forms, then there’s no effect. It’s just a line of available credit. Having access to $50k worth of credit via your credit cards doesn’t affect anything either.
Thank you.