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<blockquote> <p>Apparently if you've accumulated debt (that can be justified), for example a new roof, and/or a new, but modest, vehicle, needed for work... things of that sort, then the payments for such things may be subtracted from your total income.>></p> </blockquote>
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<p>Let me change my wording...and I certainly didn't mean to offend anyone. In MOST cases, amassing consumer debt will not be a consideration when your child applies for financial aid. As pointed out above by someone else, even in the case of home equity loans, the amounts would have to be quite large to have an impact on finaid awards. I do imagine that one could get a "preferred package" if one's student were a highly desired student for a particular school anyway. But I do not believe that the consumer debt outlined above would gain most folks much in the need based finaid process. Simply put, I would never advise anyone to assume consumer debt to improve their financial aid packages. It is highly risky and in many cases will not net the student additional money. Unless your debt is due to extreme circumstances, it can be viewed as an optional expense (e.g. If you got a new roof because your old one was blown off in a hurricane, that would be extreme circumstances. If you got a new roof because the old one was looking iffy, that could be viewed as optional.).</p>