personal assets and liabilities

[ayj]

hey guys,

let us say hypothetically someone had $5,000 in a brokerage account but also had $11,000 in credit card bills. That person's net worth would then be -$6,000. Does that individual have to report the $5,000 in assets on the FAFSA or to the financial aid office?

ayj

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[deadwood]

great question.
I'd like to know as well. (Although I just went ahead and calculated assets at value minus debt.)

 

[mpp]

The FAFSA specifically asks for the monetary value in savings accounts, checking accounts, investment accounts, stocks, etc. It does not ask for net worth (which is what you have described). However, you can be fairly 'creative' (also known as deceptive) when filling in the FAFSA and more than likely never get called on it. But why take the risk.

My hypothetical advice would be to take the $5,000 and pay down the credit card debt.