What is the net worth of your parents’ investments?


This is question 89 on the paper FAFSA.

The net worth of your parents' current investments is the amount left over after deducting the debt from the value of the investment.

For example: Your parents 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 your parents own multiple investments, total the net worth amounts and report them as a lump sum.

For example: Your parents own two investment properties. One property’s net worth is $25,000 and the other property’s net worth is $15,000; the total net worth of current investments is $40,000.

If your parents’ net worth as of the day you submit your Free Application for Federal Student Aid (FAFSA) is:

Net worth value Enter
One million or more 999999
Zero or less than zero 0

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

Investments include real estate (do not include the home you live in), 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 your parents 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.

Note: Students who must report parental information on this form should report all qualified educational benefits or education savings accounts owned by the parents and / or the dependent student as part of the parental assets.

Investments do not include the home your parents live in; cash, savings and checking accounts; the value of life insurance and retirement plans (401[k] plans, pension funds, annuities, noneducation IRAs, Keogh plans, etc.).

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.

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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