What is the net worth of your investments?

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This is question 42 on the paper FAFSA.

The net worth of your (and if married, your spouse’s) current investments is the amount left over after deducting the debt from the value of each investment.

For example: You (and if married, your spouse) own an investment property valued at $100,000; however, $75,000 in debt is owed on the property. The net worth of the investment is $25,000 ($100,000 – $75,000 = $25,000).

If you (and if married, your spouse) own multiple investments, total the net worth amounts and report them as a lump sum.

For example: You (and if married, your spouse) own two investment properties.

The first investment property is valued at $100,000. The debt that is owed on the property is $110,000.

To calculate the net worth, perform the following calculation:

(Value of Property) minus (Debt Owed on Property) = net worth

$100,000 – $110,000 = -$10,000

The net worth of this first investment property is considered $0, not negative value of $10,000.

The second investment property is valued at $200,000. The debt that is owed on the property is $100,000.

(Value of Property) minus (Debt Owed on Property) = net worth

$200,000 – $100,000 = $100,000

The net worth of this second investment property is $100,000.

If the net worth of the first investment property is $0 and the net worth of the second investment property is $100,000, then the amount to be reported for both properties is $100,000.

If your (and if married, your spouse’s) net worth as of the day you submit your Free Application for Federal Student Aid (FAFSA) is:

Net worth value Enter
Ten million or more 9999999
Zero or less than zero 0

Round to the nearest dollar and do not include commas or decimal points.

Investments include real estate (do not include the home in which you live), 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 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 you are 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 you are not required to report parental information and you own (or if married, your spouse owns) any of these qualified educational benefit plans report the current balance of the plan as a student / spouse asset. The amount to be reported for a prepaid tuition plan is the “refund value” of the plan.

Investment value means the current balance or market value of these investments as of the day you submit your FAFSA. Investment debt means only those debts that are related to the investments.

Investments do not include the home in which you (and if married, your spouse) live; cash, savings and checking accounts; the value of life insurance and retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.).

For more information about reporting investments, call the Federal Student Aid Information Center 1-800-4-FED-AID (1-800-433-3243).

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