We bought a house. Am I screwed? PLEASE HELP

Paying for College
1

<p>Some background:
My dad died about 8 months ago, leaving my family with some life insurance money. We had been living in a church-owned house and were supposed to move by the end of the year anyways. So we just recently moved into a house we bought for $128,000. This used all of the life insurance money, but was also an incredible steal because it was worth much more.</p>

<p>But it just dawned on me that this might adversely affect how much aid I get when I apply to colleges (I'm currently a Junior). I know there is a portion on the FAFSA where you list assets. A house would be included here, right? How will they view a house that seems well-above what someone with our income could afford?</p>

<p>I definitely need a lot of aid to afford college. Our only source of income right now is my mom who works part-time two or three times a week at a church's daycare center. She is also working on being re-certified to teach and working on her certification to teach Mandarin. Next fall when I am applying to college, she will probably be teaching at a high school, making less than $40,000. </p>

<p>If you know anything at all about how this house might affect my aid (both federal and institutional) please respond. Please feel free to ask questions, too. I am really worried right now. Thank you in advance for your help.</p>

2

<p>It will help on federal aid. FAFSA does not include primary home value at all. The money would have been counted as assets—though parents do get asset protection allowance.</p>

<p>For PROFILE, the value of the house less any mortgage on it has to be listed. But again, parents get some asset protection allowance and home equity is usually capped, though that depends on individual schools.</p>

<p>Is the home in the students’ name? If so, that could be an issue with PROFILE. I don’t know how that works, or can work. Students do not have asset protection allowance as a rule.</p>

3

<p>Thank you so much. You pretty much answered everything I wanted to know. Thanks!</p>