My parents is buying their first house, will that affect my FA?

<p>My family income last year was $33k, we didn't have to pay anything for income tax, and my EFC was 342 according to the fafsa. I'm currently enrolling in a local community college where the cost is covered by pell grant and state grant. My pell grant for the 2013-2014 is $5,295.</p>

<p>As of right now, my parents have saved a little bit of money and they decided to buy a house that cost $138k. This is the first house we buy, prior to that we lived in rental places. So my question is, will the house affect my EFC and financial aid since it will be consider as a property?</p>

<p>No it won’t.</p>

<p>Are your parents self-employed? have their own business?</p>

<p>FAFSA will consider all your parents assets together, whether it is in the form of savings/cash or equity in their new home. It sounds like their assets have not increased or decreased significantly in value; it simply changed from one form (cash) when you applied last year to another form (equity) when you apply this year. Thus, the FA calculations should be similar.</p>

<p>Fafsa doesn’t consider equity in the primary family home. So your parent’s reportable assets will go down by the amount they put down on the house. But at that income it’s likely they were already under the parent asset allowance.</p>

<p>FAFSA will consider all your parents assets together, whether it is in the form of savings/cash or equity in their new home</p>

<p>no.no.no.</p>

<p>FAFSA does not consider the equity in a primary home.</p>

<p>RMLDAD…do you have a child in college this year? If so, did you fill out FAFSA?</p>

<p>I confused the FAFSA (does not include equity) and the CSS Profile (likely includes equity depending on school’s policies and exemption thresholds). I apologize for my mistake.</p>

<p>Thank for the very informative responds, it’s been very helpful.
@mom2collegekids: My dad works for at manufacturing and my mom works at a beauty salon, they are not self-employed nor owning any businesses.</p>

<p>@rmldad: I don’t know what a CSS Profile is, can you explain it a little bit?</p>

<p>Some private schools and a few public schools use CSS Profile as well as FAFSA.</p>

<p>You’re attending a CC…no CSS Profile for that.</p>