Effect of home owning on financial aid

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
MandyNC
Posts: 25
Joined: Mon May 25, 2009 1:07 pm

Effect of home owning on financial aid

Postby MandyNC » Mon Feb 22, 2010 12:46 pm

Does anyone know what owning a house does to your EFC in financial aid? We're looking at buying a cheap investment house for while I'm in ls. Money for a down payment and co-signers mean we're paying less than we'd pay for rent, but I'm wondering if the government assumes you have a mad flood of cash if you own a home. Even then, can you just use the grad plus loans to make up any difference?

Curious if anyone has experience with this. Thanks.

gmichaelbluth
Posts: 172
Joined: Fri Jun 26, 2009 12:35 am

Re: Effect of home owning on financial aid

Postby gmichaelbluth » Mon Feb 22, 2010 12:51 pm

I don't remember them asking about current home value for FAFSA--I do recall a question about the value of real estate you own that is NOT your primary residence. I think the Need Access form requests some information about your current home value though, so that could potentially have some impact on the results.

unbeknownst
Posts: 40
Joined: Tue Sep 15, 2009 2:07 pm

Re: Effect of home owning on financial aid

Postby unbeknownst » Tue Feb 23, 2010 6:12 pm

bump

How about for a principal residence? That I will have to rent out when school starts?

secant
Posts: 25
Joined: Sat Oct 24, 2009 8:50 pm

Re: Effect of home owning on financial aid

Postby secant » Tue Feb 23, 2010 6:21 pm

My recollection is that you include real estate as an investment but exclude the home you live in.

sarahd
Posts: 56
Joined: Sun Mar 01, 2009 7:37 pm

Re: Effect of home owning on financial aid

Postby sarahd » Tue Feb 23, 2010 6:29 pm

You do exclude the home you live in...it is not considered for the purpose of financial aid one way or the other.

So, for this year that would be your current home...which would then be an investment property for the purpose of next year's FAFSA.




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