Parents’ Net Worth of Businesses/Investment Farms


This is question 92 on the FAFSA.

The response indicates the student’s parents’ total net worth (current value minus debt) of businesses and investment farms as of the day the FAFSA was completed.

Business and/or Investment Farm value includes the market value of land, buildings, machinery, equipment, and inventory.

Business and/or Investment Farm debt means only those debts for which the business or investment farm was used as collateral.

Business value does not include the value of a small business if your family owns and controls more than 50% of the business and the business has 100 or fewer full-time or full-time equivalent employees. For small business value, your family includes (1) persons directly related to you such as a parent, sister, or cousin or (2) persons who are or were related to you by marriage such as a spouse, step-parent, or sister-in-law.

Investment Farm value does not include the value of a family farm that the student’s parents live on and operate.

If the student is Dependent, the response can be blank only if the parents’ 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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