<p>so we are paying a king's ransom on our primary residence. Almost all of my salary goes towards the mortgages. On paper, however, our earnings looks good. Do colleges take into consideration the fact that we do not have a whole lot of discetionary income to pay tuiition bills when they consider the FAFSA?</p>
<p>No, schools don’t consider your debts and debt service.</p>
<p>If you are that house-poor, have you considered selling it and moving into something cheaper?</p>
<p>Your primary residence is not mentioned in any way on the FAFSA. Your consumer debt (including your mortgage) does not factor into the financial aid formula.</p>
<p>The size of your mortgage, credit card debt, etc - otherwise referred to as 'lifestyle choices" is not considered on the FAFSA. We have a tiny little house because we knew someday we would have to help our children with college…</p>
<p>Unfirtuantely, it looks like I am stuck. I did not choose a huge debt ceiling, unemployment forced me to borrow against my equity. In any case, good luck to all and God bless.</p>
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<p>♪ ♫♪ ♫♪ ♫ Ain’t that America home of the free,
Little pink houses… ♪ ♫</p>
<p>I feel very sorry for so many people today who are upside down in their homes. Not everyone who is in this position bought a huge house with little or no money down,
with complete disregard for the future of themselves or their children. Some are just victims of bad timing, job transfers, loss of employment or other circumstances that required them to tap into home equity.</p>