FAFSA
My daughter will be attending college in the fall of 2027. I have been reading up about applying for FAFSA and I gave 2 questions.
1. Should I use my savings to pay off my mortgage so my savings balance is lower?
2. Should I keep the money I have saved for her in her account or transfer to my account?
If you have any other suggestions or tips for us it would be much appreciated.
Terry Says
Oh my goodness – you should have moved the money in her name two years ago, as it heavily weighs against you in the FAFSA formula. Do so immediately, so you can say it is in your name. Legally, it has to be used for her, so you can maybe create a new account in your name and say it is for college savings.
Home equity is not counted in the FAFSA filing, although it is if you’re using the CSS profile. Read this on home equity:
https://accountinginsights.org/how-fafsa-considers-home-equity-in-financial-aid-calculations/
I think you should immediately schedule an appointment with your daughter’s high school college advisor to discuss the best approach to filing FAFSA, and choosing school to apply.
The advisor will know which schools she might get accepted to, and where she might be offered other financial aid.
Also, have your daughter sign up at Scholarships.com to see if there is any free money available.
