<p>Hello, I have a friend who is a single mom and her D is a junior in HS. She sold her house in 2013 and the proceeds are sitting in cash (not sure maybe $150K). Will this cash affect her financial aid potential? She plans to buy another residence within the next 2 to 3 years but not ready to commit. Should she speed up the process and purchase the house in 2014.
Not sure of her income but guessing maybe around $100K. If it is $100K should she expect an EFC of 25%? (and only applying to schools which require the FAFSA) Financially, the father does not participates at a minimum. </p>
<p>The ‘house money’ is just treated as cash - they don’t care that it will be used for a house.</p>
<p>But really, if she makes $100,000 anyway, it’s unlikely her child/children will get much in need based aid anyway.</p>
<p>She won’t get need based aid (based on my Net Price Calculations). And I don’t even have the $100 K in the bank, just an income not too too far behind what you say her income is.</p>
<p>I’m a renting single mom who expects no participation from the father BTW (except for the child support that regularly is paid).</p>
<p>Your friend’s house profit in the regular bank will be assessed at 5.6% of its value towards EFC after the asset protection allowance. </p>