<p>My husband started a new company this year with a partner in another state. So far, they have made no money because they are still developing their product. I don't work. However, we do have a lot of assets, from which we derive our income. </p>
<p>We had not planned on applying for aid because we didn't think we'd qualify, but I'm wondering if my husband's new venture puts us in a different category. We've also been told that even if your kid is only applying for merit money, you still need to fill out a FAFSA because the colleges need to see that you aren't getting any need-based aid.</p>
<p>We do plan to discuss this issue with our financial advisor, but I'm wondering if others are in the same situation, and how you handled the FAFSA thing.</p>
<p>It does seem that colleges would look more favorably on a full-pay kid in terms of admissions, especially if she is tied with another applicant who is applying for aid, but I certainly don't want this to be the only consideration.</p>
<p>The bottom line is that we are prepared to pay for the whole thing, but if it's possible to hold on to more of our assets, it would seem wise to do so.</p>
<p>Don’t quote me, but I think they look more at your income from the previous year than they do your assets. For example, your home and retirement, I believe, are excluded. Also, if you own a business that is not considered in calculating your contribution. It sounds like you would be wise to fill out the FAFSA.</p>
<p>Financial advisors often do NOT understand how colleges view income and assets, so don’t depend on that.</p>
<p>*We had not planned on applying for aid because we didn’t think we’d qualify, but I’m wondering if my husband’s new venture puts us in a different category.</p>
<p>We’ve also been told that even if your kid is only applying for merit money, you still need to fill out a FAFSA because the colleges need to see that you aren’t getting any need-based aid.*</p>
<p>Most colleges that award merit money do NOT require you to fill out FAFSA. We’ve NEVER filled out FAFSA, yet my kids got merit from many of the schools that they applied to. </p>
<p>If you look at schools that give ASSURED merit for certain stats, they don’t care what your income/assets are…they don’t require FAFSA. </p>
<p>Some schools do have a “need” component to their merit scholarships and/or want to determine if you qualify for other aid as well, but most schools do NOT require FASFA for merit scholarships.</p>
<p>If your assets are large enough to generate an income you can live on, then they will figure significantly. We filled out the FAFSA because S is taking some unsubsidized Stafford loans and you need it for that. Have you tried running any of the EFC calculators to see where you really stand?</p>
<p>Subtract $50,000 from the total of all your assets (don’t include the value of your house) and multiply that figure by 5.6%. If that amount is greater than the highest-cost college your daughter is considering, then you will not receive any need-based financial aid.</p>
<p>Thanks, all. We will fill out a FAFSA. The worst they can do is laugh at us, right?</p>
<p>Right…</p>
<p>But don’t worry about FAFSA and applying to some schools known to give big merit scholarships…especially ones that are assured for stats. Those schools don’t care what your FAFSA EFC is.</p>