FAFSA/CSS and Home equity loan to cover business losses

Paying for College
1

<p>This past year we closed our longtime business. We were incorporated as a C corp and have twice filed the CSS Business/Farm Supplement. However, like many small business owners we had personally guaranteed some things and have taken out a home equity loan to pay off those debts.</p>

<p>Any ideas how to accurately reflect this situation on the FAFSA and CSS Profile? The FA office at our daughter's school is aware of the situation as we recently (and successfully) did a letter of special circumstances.</p>

<p>Thanks for any help you can offer.</p>

2

<p>There is no way to reflect it on FAFSA. As the neither the primary home nor any mortgage against it is reported on FAFSA a home equity loan would not be reported.</p>

<p>Don’t know about CSS - I would think the home equity loan would be reflected in a reduction in the net value of the home (home less loans against it).</p>

<p>You will probably need to talk to the FA office again to see if there is basis for a special circumstances adjustment for the upcoming year.</p>