own vs rent a house

Paying for College
1

<p>As our kid finally goes to college, we are considering selling our house and rent a place in the city. The only uncertainty we have is that we have accumulated a decent equity in our house. Once we sell it, this equity will translate into some form of cash in our bank account. </p>

<p>If every other thing stays the same, what will be the impact to EFC? Will it change?</p>

2

<p>For FAFSA the equity in your house is a protected asset while it is equity in your house. As soon as you sell it that money is no longer a protected asset and @5.6% of it will be assessed to the EFC each year. So, for instance, if you have $250,000 equity in your house then that $250k would increase your EFC by @ 14,000.</p>