How are reportable assets defined for the FAFSA?

So, I'm filling out my FAFSA and I've hit a snag regarding reportable assets. I'm not entirely sure what counts as a reportable asset and what doesn't. For example, do savings accounts, stocks, or retirement accounts all have to be reported? Also, what about things like family trust funds or properties? I'm trying to figure out what exactly needs to be included and what might be excluded, to ensure everything is accurate. Has anyone else gone through this process and could shed some light on it?

Sure, I can help provide some clarity on this. There's always a lot of confusion about what to report on the FAFSA as assets, and what not to report. Here's a breakdown:

Reportable assets do include the following items:

1. Money in cash, savings, and checking accounts.

2. The net worth of your investments, including real estate besides your family home, stocks, bonds, mutual funds, etc.

3. The net worth of your current businesses and/or investment farms.

Things that you don't need to report as assets include:

1. The home in which your family lives.

2. Any small family businesses with 100 or fewer full-time employees.

3. Retirement plans, including 401(k) plans, 403(b) plans, profit-sharing plans, etc.

4. Non-education IRAs, and Keogh plans.

5. Life insurance policies.

6. Personal possessions such as a car, furniture, clothing, or a computer.

And here comes the tricky one: assets from a trust fund. You have to report the value of the trust as an asset if you have unrestricted access to it. But if there are conditions or restrictions for using the funds, you may not have to report it as an asset. It's a good idea to seek advice from a financial advisor to accurately report the trust funds, if this applies to you.

If you're still unsure, don't hesitate to ask a financial aid officer at a college you're interested in or a professional who works with the financial aid process regularly. They're usually more than happy to help students navigate these complexities!