What Counts as Parental Net Worth on FAFSA
On the FAFSA, parental net worth is calculated as the total value of reportable assets minus certain debts. Reportable assets typically include cash, savings, checking accounts, investments, real estate, and businesses. Exclude the primary residence, retirement accounts, and small businesses owned and controlled by the parent.
How to Calculate and Report Parental Net Worth
To determine net worth, add the current market value of reportable assets and subtract any eligible debts, such as investment loans or business debt. Do not subtract the mortgage on the primary home or retirement account balances. Use market values as of the FAFSA filing date, and report the amount as accurately as possible.
Why Accurate Reporting Matters
Accurate reporting affects your Expected Family Contribution and financial aid eligibility. Underestimating or overestimating net worth can lead to verification, penalties, or loss of aid. If you are unsure about an asset, consult the official FAFSA guidelines or your college's financial aid office for clarification.
