<p>Can someone tell me how much I am expected to pay for college (or how do college calculate business assets)? I'm really worried since my family does not make much (around $40,000), but my dad owns a business (home rental) that's worth around $400,000 (but has a mortgage of around 200,000) . Will colleges expect my dad to liquidate these homes to pay tuition (these homes belong to the corporation but my dad owns the business)?</p>
<p>*Can someone tell me how much I am expected to pay for college *</p>
<p>Regardless of how your parents assets are figured, no one can tell you how much college will cost you. First of all, we have no idea of how much your colleges cost. Also, some schools can meet need and some can’t. </p>
<p>What schools did you apply to? Did you apply to any financial safety schools?</p>
<p>When will you submit your FAFSA?</p>
<p>Does all of your family’s income come from a few rentals?</p>
<p>Sorry for not being clear (I was really stressed out). I guess my real question would be how much colleges account a rental property business to calculate need. </p>
<p>What schools did you apply to? Did you apply to any financial safety schools?
I applied to UPenn and a few other Ivies and was accepted into Drexel and UPitt.</p>
<p>When will you submit your FAFSA?
I have already submitted by Fafsa (EFC is around 1700), but I’m concerned about how colleges calculate need (Institutional Methodology). </p>
<p>Does all of your family’s income come from a few rentals?
Yes. Most of the income. My dad does construction as well but it doesn’t really help. </p>
<p>I’m scared that colleges might weigh business assets more than the annual income.</p>
<p>If you get accepted to an ivy, that may be your best aid. Which ivies besides UPenn did you apply to?</p>
<p>Did you also submit CSS profile?</p>
<p>Is UPitt your financial safety? Did they give you a scholarship, too?</p>
<p>If you get accepted to an ivy, that may be your best aid. Which ivies besides UPenn did you apply to?
HYPSM, but it’s unlikely that I’ll get into them. I’m hoping for Penn (my school sends a lot of students to Penn every year).</p>
<p>Is UPitt your financial safety? Did they give you a scholarship, too?
Yes. Unfortunately, no scholarship (but I live in the state)</p>
<p>^^^^</p>
<p>What are your stats?</p>
<p>Rank 4/530, good ECs (sci research ,leadership), decent essays/recs, first gen, SAT subjects are in range (>700) but my SATs throw me off the table (1900s) and no URM. </p>
<p>Is this relevant to financial aid? haha</p>
<p>Yes, it is relevant. Schools that don’t promise to meet need often give better aid to those with high stats as an incentive for the student to go to their school.</p>
<p>Thanks for your insight mom2collegekids. I’m still looking for an answer though on how significant a family business comes into play for financial aid.</p>
<p>OK…I’m not 100% positive about this…but someone else will correct me if I am not correct. If your family has rental properties, typically they are counted as assets…but just the equity in them. That is the value minus the mortgage balance on them. In addition, any rent from these properties is considered income. NOW…the question is…how are the properties held? If they are held as personal property by your parents and they rent them, the above would hold, I believe. </p>
<p>There may be some difference if these properties are held by a LLC or some other corporation that your parents “own”. Someone else better versed in this will have to respond.</p>
<p>Thank you for replying thumper1. These properties are held by a corporation so there would be a difference. However, I don’t know how it will influence financial assistance =(</p>
<p>In such a case, would the corporation be given a value?</p>
<p>If your parents are in the business of managing rental homes, and they have incorporated, then the value of the rental homes is not a family asset, it’s a business asset. Colleges will look to see where the rental income is reported on your parents’ income taxes. Income on Schedule C is typically business rental income while income on Schedule E would typically be income earned from renting out a vacation home. </p>
<p>If the business employs fewer then 100 people, it’s not reported on FAFSA. If you’re applying to any colleges that require Profile, then you’ll need to report the value of the business on the business and farm supplement.</p>
<p>Part of the value of the business would be the net value (value minus debt) of any property owned by the business. Your parents’ accountant (if they have one) can probably help them to calculate the business valuation.</p>