My financial aid application was selected for verification by my school and I had to handover IRS transcripts which had shown that my parents made dividends that year. Therefore I also had to fill out A asset verification form. My counselor told me to put down the number it would be worth when you initiated the Application. Because it says net worth and asset. I don’t know if I put the amount of money my parents have in the stock or how much they would they make off dividends if they were to sell it. Because net worth is minus lliabilities. And the to me a liability is owning the stuff itself. And the profit is the divendeds. Anyways. Help please and thank you.
Net asset value is the fair market value of the assets minus any liabilities on them. It does not take into consideration how mich the asset may pay, as that is considered in income. They also don’t take into consideration what you paid for it. They literally just want to know how much cash you would have if you sold it that day (before taxes).
Net worth, simply speaking, is the market value of the assets you own minus the debt that you owe on those assets. For example, if you have a car that currently has a market value of $5,000 (what you could expect to be paid for the car if you chose to sell it) but you still owe $2,000 for the loan that you took to buy the car, your net worth in the car would be $3,000.
If your parents own stock that they bought outright with cash, the net value in that stock is whatever the market value of the stock is on any given day. Dividends that the stock may pay has nothing to do with the intrinsic value of each share of stock.
So I multiply the number of shares they own by the price of the stock on a given day?
So I multiply the number of shares they own by the price of the stock on a given day?
Yes.
You also need to know if they have any loans against the stock. Are your parents not able to answer the questions?
They do not, it’s just a language barrier thing
Do you have a ballpark figure? Do you think you actually qualify for FA? As for their portfolio, if it is held in a US brokerage it will all be online, you will be able to land on a page where it will list the assets in the portfolio.
Right, if your parents have that assets in a US brokerage account (for example Charles Schwab, Ameritrade, eTrade,), then go online to their account (parents will need to register for that), and you can see the net worth of each stock they have on a summary page.
Thanks everyone
If you don’t have that information already, you must have missed something in your original FAFSA application.
I didnt have to write it because my fasfa said do their assets exceed this much. I said no. So it blocks the rest of the questions.
It sounds like you might have had an auto $0 EFC…or your income was extremely low. The school is just verifying that the income you reported is accurate…and that would include dividends of required. Just complete the verification forms ASAP with the requested info. If your assets are not required, that is that.
The info you have been given upstream here is accurate.
Well it’s not that low. My etc is not 0. But it’s the first time they are asking me to verify their investments. I think if it didn’t exceed 22k I didn’t have to answer those questions. That’s why I never did.
That is correct. There is a question bout assets on the fafsa…and if the amount is less than the specified amounts…there is skip logic that allows you to,skip the asset amounts.
Don’t worry about it if your info was accurate. They are just verifying that what is ON the fafsa is actually correct info.
Well it says if it’s exceed 22k. But it’s 17k. So that’s what I’m writing 17k on the verification.
Just make sure you have documentation to support that number…just in case its requested.
Well the investment is 17k. So I never reported it since it’s not over 22k. So that’s what I’m writing down.
I hope they don’t give me a headache