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Completing the FAFSA: What Parents Need to Know About Assets
Assets play a significant role in determining a student’s eligibility for need-based financial aid through the Free Application for Federal Student Aid (FAFSA). The FAFSA uses a formula called the Federal Methodology to calculate a student’s Student Aid Index (SAI). This figure determines how much financial aid a student is eligible for. Assets, along with income, are key components in this calculation.
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By Chuck Moore, CCFC, Al Hoffman, CCA and Gary Carpenter, CPA, CCAAssets play a significant role in determining a student’s eligibility for need-based financial aid through the Free Application for Federal Student Aid (FAFSA). The FAFSA uses a formula called the Federal Methodology to calculate a student’s Student Aid Index (SAI). This figure determines how much financial aid a student is eligible for. Assets, along with income, are key components in this calculation.