What not to include on the FAFSA?
Asked by: Caesar Satterfield | Last update: November 11, 2025Score: 4.6/5 (11 votes)
Cars, computers, furniture, books, boats, appliances, clothing, and other personal property are not reported as assets on the FAFSA. Home maintenance expenses are also not reported as assets on the FAFSA, since the net worth of the family's principal place of residence is not reported as an asset.
What is the #1 most common FAFSA mistake?
Some of the most common FAFSA errors are: Leaving blank fields: Too many blanks may cause miscalculations and an application rejection.
What do you not have to report on FAFSA?
Your retirement savings: The FAFSA doesn't ask you to list the balance of 401(k)s, IRAs, Roth IRAs, pensions, annuities, or other retirement funds. The value of life insurance policies: Reporting life insurance is not required by the FAFSA.
What will disqualify you from FAFSA?
For example, if your citizenship status changed because your visa expired or it was revoked, then you would be ineligible. Other reasons for financial aid disqualification include: Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school.
What counts against you on FAFSA?
Assets considered for the FAFSA include: Money, which includes current balances of any cash, savings, and checking accounts. Non-retirement investments, like brokerage accounts, real estate (other than your primary residence), CDs, and stock options. Trust funds.
🎓 How to Legally "Hide" Your Money to Get College Financial Aid (2022)
What are the red flags on FAFSA?
Red flags are additional requirements needed to complete your financial aid. It could be because additional information is required, an application needs to be completed in order to finish the loan process, or a follow-up form has been mailed to your main mailing address.
What not to include on FAFSA?
Cars, computers, furniture, books, boats, appliances, clothing, and other personal property are not reported as assets on the FAFSA. Home maintenance expenses are also not reported as assets on the FAFSA, since the net worth of the family's principal place of residence is not reported as an asset.
What can make you lose FAFSA?
Some of the most common ways to lose student aid eligibility include defaulting on a federal student loan or not maintaining satisfactory academic progress.
What is the maximum income for FAFSA?
There are no income limits to apply, and many state and private colleges use the FAFSA to determine your financial aid eligibility.
Does FAFSA check everything?
Federal law requires that one-third of all FAFSA submissions be verified for accuracy. Colleges can choose if they want to verify more than what the federal government deems necessary. Some colleges verify 100% of their FAFSA applications.
What does the FAFSA not tell you?
The FAFSA will not tell you how much college will cost or how much you can afford. What you can afford is a function of your budget, which you've already worked on.
Should I empty my savings account for FAFSA?
The student should keep no cash or cash equivalents saved in their name. Students are punished by the FAFSA for saving any cash. The FAFSA will specifically ask “As of today what is the cash balance of checking, savings…” accounts for the student.
What does not count as income on FAFSA?
Assets that are not counted by FAFSA when determining your SAI include: 401(k) and Roth and traditional IRA accounts (though withdrawals from Roth IRA accounts will be counted as untaxed income) Cash values of whole life insurance policies and qualified annuities. SIMPLE, KEOGH, and pension plans.
How much is too rich for FAFSA?
There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens for the following school year.
What are three helpful hints for applying for the FAFSA three common mistakes?
- Leaving blank fields–enter a '0' or 'not applicable' instead of leaving a blank. ...
- Using commas or decimal points in numeric fields–always round to the nearest dollar.
- Listing incorrect social security number or driver's license number–check these entries and have someone else check them too.
How to fill out FAFSA to get the most money?
- File Early.
- Minimize Your Taxable Income.
- Clarify Who Owns Your Assets.
- Don't Assume You Won't Qualify.
- FAFSA Isn't the Whole Picture.
- FAQs.
- The Bottom Line.
What disqualifies you from FAFSA?
Disqualifications for financial aid include lack of citizenship, defaulting on loans, drug offenses, failure to maintain academic progress, and incomplete FAFSA info.
Do parents who make $120000 still qualify for FAFSA?
What income is too high for FAFSA? There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college.
What salary is too high for FAFSA?
Technically, no income is too high for the FAFSA. The U.S. Department of Education recommends filling out the FAFSA yearly, regardless of income. However because FAFSA is needs-based aid, those from lower-income families with a greater financial need get access to more financial aid.
Can you keep extra FAFSA money?
Any money left over is paid to you directly for other education expenses. If you get your loan money, but then you realize that you don't need the money after all, you may cancel all or part of your loan within 120 days of receiving it and no interest or fees will be charged.
What GPA do you need for the Pell Grant?
The Pell Grant has no minimum GPA; it is a purely need-based grant! That means that as long as you demonstrate need through the FAFSA and have gained admission to a college, you will qualify.
What are the cons of FAFSA?
- Not all students qualify for subsidized student loans. The information you provide on your FAFSA determines eligibility.
- Student loans must be repaid, and debt adds up quickly. ...
- There is a cap to how much you can borrow, so be sure you're seeking other types of financial aid as well.
What does FAFSA not look at?
Non-reportable assets
Qualified retirement plans, including 401(k), Roth 401(k), 403(b), IRA, Roth IRA, SEP, SIMPLE, Keogh, profit sharing, and pension plans. Qualified annuities are also not counted on the FAFSA.
What can you not spend FAFSA money on?
Clothing: You cannot use your federal student aid to buy new or used clothing. Housing Purchases: Federal student aid cannot be used as a down payment or other payment for a property you intend to purchase or have already purchased.
How to reduce income for FAFSA?
- Taking an unpaid leave of absence.
- Incurring a capital loss by selling off bad investments.
- Postponing any bonuses until after the base year.
- If the family runs its own business, they can reduce the salaries of family members during the base year.