Student’s Net Worth of Current Investments

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This is question 42 on the FAFSA.

The response indicates the student’s (and his/her spouse’s) total net worth (current value minus debt) of current investments as of the day the FAFSA was completed.

Investments include real estate (other than the home in which the student lives), rental property (includes a unit within a family home that has its own entrance, kitchen, and bath rented to someone other than a family member), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.

Note: UGMA and UTMA accounts owned by the student are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regardless of the student’s dependency status. Do not include UGMA and UTMA accounts for which the student is the custodian but not the owner.

Investments also include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans, and the refund value of 529 prepaid tuition plans. If the student is Dependent, the accounts are reported as parental investments in question 91, including all accounts owned by the student and all accounts owned by the parents for any member of the household. If the student is Independent, accounts owned by the student (and his/her spouse) are included as student investments in question 42.

Investments do not include the home in which the student lives, the value of life insurance, retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.) or cash, savings, and checking accounts already reported in question 41.

The response can be blank only if the Independent student indicates their current assets do not exceed the asset threshold amount determined by CPS, or the student meets the simplified needs test or qualifies for an automatic zero Expected Family Contribution (EFC).

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