<p>So I'm going to be a senior at a university next year and my brother will start college next year as well. My parents want to buy a house sometimes this year, but they aren't sure how will it effect our financial aids. Does anyone have any idea? Will it decrease the financial aids we're receiving now? Will it increase it? My parents are renting an apt now and they're willing to spend upto $300000 towards the house with a down payment of $50000 if that information helps anyway. I would really appreciate any input.</p>
<p>What kind of aid are you receiving now? Does your college/university use the FAFSA or the CSS Profile or something else entirely? Where is that down payment coming from, and how much will your parents still have in non-retirement accounts?</p>
<p>Your folks can print out the FAFSA formula and work through it on paper using several different scenarios. <a href=“http://ifap.ed.gov/efcformulaguide/attachments/010512EFCFormulaGuide1213.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/010512EFCFormulaGuide1213.pdf</a> For aid at colleges and universities that your brother is considering, they can run the Net Price Calculators at the various college websites, but they need to be aware that no one knows yet how accurate those are. For your particular university, they can pick up the phone and chat with the financial aid office.</p>
<p>FAFSA does not look at equity in primary residence or retirement accounts. So if your parents are withdrawing $50K from an account they do look at and putting it into a home, it would lower your EFC. College Profile asks about primary residence but it’s up to the school how they use it. At worst, the equity would be looked at the same as if it were $ in the bank so the $50K in equity would look the same in the bank or in the house. </p>
<p>However, that’s assuming you go to a school that meets full need AND you get need-based aid.</p>
<p>It’s smart if they want to have less assets when fafsa is filed, which should help for fin aid as others have mentioned. I have no knowledge of the profile schools.</p>
<p>It is NOT good for you if you don’t get much aid and if they were willing to use some of that $ to help you pay for school or pay off future loans. Obviously once they spend it on the house they can’t spend it on you. Also, if the mortgage is higher than the current rent they will have even LESS to help you kids out with month to month.</p>