Will the equity in your home affect your child’s need-based financial aid eligibility? As with so many aspects of the college application and financing processes, it depends! Home equity is not an asset to be reported on the FAFSA. If your child is applying to a college that only requires a FAFSA to apply for aid, any equity in your home will not affect financial aid eligibility. And, happily, 90% of colleges fall into this category.
However, if your child is applying to one of the 400 colleges and universities who require the CSS Profile, you will be asked to report the equity in your home.