What investment ‘gurus’ may call assets, the FAFSA does not.
The FAFSA considers some assets to be assessable, while others are regarded as non-assessable. Assessable assets are those that are included within the FAFSA calculations to help determine the amount of a family’s Expected Family Contribution (EFC). Non-Assessable assets are not included in these same FAFSA calculations.
What are some assets that are regarded as non-assessable? Annuities, cash value life insurance, retirement accounts, and the equity in one’s primary residence – just a name a few.
When is a non-assessable asset not a non-assessable asset? Certain private universities won’t exempt these non-assessable assets when determining the financial aid eligibility of a prospective student. In fact, these universities require that students’ families complete an additional form to apply for financial aid – the CSS/Financial Aid PROFILE – that requests such financial information.
Make sure that you understand the unique financial aid rules of each university, and the applicable deadlines for each, before you apply to schools for financial aid.