home value and equity

Paying for College
1

<p>When I originally completed the CSS profile and came to the question about home value, I called my neighbor, who is always talking to real estate agents, and asked her opinion. I now realize that I probably overestimated our home value by about $50,000. </p>

<p>Since we've owned our home for close to 20 years, we have quite a bit of equity in spite of the drastic decline in home values over the last few years. The rest of our financial situation is not so great.</p>

<p>We are now waiting on a financial aid offer from one private university. What should I do? Call the financial aid office, or e-mail?? I've already made and sent corrections to the CSS profile once. Also, could this make a significant difference to our aid package?
Thanks.</p>

2

<p>Schools using CSS can treat home equity a variety of ways. Some cap home equity relative to income. Your overestimate may not make a difference. If it does, it could add about $2500 to your EFC (5% of $50K)</p>

<p>After you get the fin aid package and review it, call the school to get clarification and possibly a review.</p>

3

<p>Its funny I have alot of equity in my home and it didnt effect my EFC. I also did a CSS profile for the school my son will most likely attend and i was able to get alot of grants and full pell. I would call the financial aid office and they can correct the CSS.</p>

4

<p>Thank you both for your replies and advice… I sure hope that we are able to get substantial grants like your son did, GCmom.</p>