1. What Are FAFSA Reportable Assets?

FAFSA reportable assets include cash, savings, investments, real estate (other than your primary home), and business assets. These assets are used to determine your Expected Family Contribution (EFC) for college financial aid.

2. How Asset Calculation Works

The calculator sums all reportable assets:

Where:

• Cash and Savings - Checking and savings account balances, cash on hand
• Investments - Stocks, bonds, mutual funds, ETFs, etc.
• Real Estate - Value of investment properties (not your primary residence)
• Business Assets - Net value of family-owned businesses (with certain exceptions)

Note: Some assets like retirement accounts, life insurance, and primary home equity are typically not included in FAFSA calculations.

3. Importance of Accurate Asset Reporting

Details: Accurate asset reporting is crucial as it directly affects your financial aid eligibility. Under-reporting can lead to penalties, while over-reporting may reduce aid you qualify for.

4. Using the Calculator

Tips: Enter dollar amounts for each asset category. Use current market values for investments and real estate. For businesses, use net worth (assets minus liabilities).

5. Frequently Asked Questions (FAQ)

Q1: Are retirement accounts included in FAFSA assets?
A: Generally no, retirement accounts like 401(k)s and IRAs are not counted as reportable assets.

Q2: How is primary home equity treated?
A: For most applicants, primary home equity is not included in FAFSA asset calculations.

Q3: What about 529 college savings plans?
A: 529 plans are typically reported as parent assets (not student assets), which affects the calculation differently.

Q4: Do small businesses count?
A: Family-owned small businesses with fewer than 100 employees are often excluded from asset reporting.

Q5: When should assets be reported?
A: Report asset values as of the day you complete the FAFSA form, using the most current information available.