10/27/2025
Did you know that the way you handle your money before filing the FAFSA can change how much financial aid you receive?
When you complete the FAFSA, both income and assets matter—but not all assets are treated the same. Reportable assets include cash, savings, investments, and real estate other than your primary home. Non-reportable assets include your family’s main home, retirement accounts, life insurance, and small family businesses with fewer than 100 employees.
To improve your eligibility for need-based aid, you can pay down high-interest debt, make necessary purchases before filing, or move funds into retirement accounts or other non-reportable assets. But be careful—moving money around can sometimes create taxable income or capital gains that hurt your aid eligibility.
The CSS Profile, used by many private colleges, goes further. It counts some assets the FAFSA ignores, such as home equity, family farms, and small businesses.
Before making changes, understand how each form treats assets and consider whether shifting money will actually help. Smart planning before filing can make a real difference in how much aid you receive.
