Let’s start with the basics.
- Each college has a net price calculator on it. Use that. It will give you an estimate of your aid and net cost at each college.
If your parents are divorced, self employed, own a business, own real estate other than your primary residence…the NPC might not be as accurate.
- The FAFSA formula is primarily based on parent INCOME. So...what is your parent annual income?
- Assets...what ARE these assets? For FAFSA purposes, the equity in your primary residence doesn’t count. Balances IN tax deferred retirement accounts like TSA or IRA accounts...don’t count.
So…what ARE your parent assets?
Assets are assessed at 5.6% of their value for FAFSA purposes. So…if you have $1,000,000 in assets! Your family contribution just from assets…would be $56,000.
- The vast majority of colleges in this country do not guarantee to meet full need for all accepted students. Many students get NO aid except the federally funded loans...which are $5500 for your freshman year.
- MOST important question...how much can your parents actually pay per year for you to attend college. If you don’t know...find out.
- Any assets held in your name are assessed at 20%of value except 529 accounts which are generally assessed at the parent rate.
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My numbers are 500,000 and 800,000 asset for public and private universities
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Is the difference the equity in your home? Schools assess this differently.