Getting ready to fill out the dreaded Free Application for Federal Student Aid (FAFSA)? It's the form that strikes fear in parents of college students and college students-to-be who have been cautioned about the tedious process involved, and the disappointing results. And while there is a ton of advice out there about how to properly prepare, what you need, and what to expect, there's another layer of concern for homeowners and homebuyers: How does the FAFSA affect you if you're in the market, already own a home, have investment property, or are thinking about refinancing? We're breaking it down.
First, a little bit about the FAFSA for those who have not yet had the pleasure: "Based primarily on your family's income and assets, the Expected Family Contribution (EFC) qualifies students for federal grants, loans and work-study programs," said Bankrate. "The purpose of the FAFSA is to calculate your expected family contribution, or EFC - the amount the government believes your family can contribute for college that year."
The good news for homeowners getting ready to fill out the FAFSA is that a principal residence is not reported as an asset. But, other real estate holdings may count as assets and may reduce your financial aid award.
No comments:
Post a Comment