<p>I'm not really sure how to phrase this question... what does the FAFSA do for someone whose family is paying for a very expensive house (with relatively high income) and someone who rents an apartment or townhome (with relatively low income)? How much weight does the cost of the home have on the overall EFC?</p>
<p>FAFSA does not consider the primary home at all. It is not a reportable asset. Actual rent paid nor mortgage paid are not considered by the EFC formula. There are income protection allowances within the formula based on the size of the family. Those allowances contain amounts for housing etc and are what are used, not actual housing costs.</p>
<p>Any properties outside of the the primary home are reportable assets. Assets over protected allowances will affect the FAFSA EFC by abour 5.6% of their net value.</p>
<p>Alright, thank you!</p>