“How will rental property impact our student’s financial aid?” This is a question I often hear from parents at this time of year. Normally they are referring to investment property such as the rental of farm land or the rental of an apartment or a house. How will this be treated? Rental property will have an impact on your ability to afford college.
There are three main distinctions with regards to rental property that one needs to be aware of: Ownership, Net Income and the Net Worth of the asset.
In most cases, when a student (under age 24 and single) is filing the FAFSA, they will be considered a dependent of the parent(s). Whoever owns the property must report the net income generated and the net worth of the asset on the FAFSA (Free Application for Federal Student Aid). In most cases, Continue reading