While several steps have been taken to simplify the FAFSA, students and parents often still have questions about calculating the value of assets.
To help students and parents understand and be prepared to answer the asset questions, here are some things to know:
- The value of the family home is not reported. Although many of us consider the family home our biggest asset, it fortunately does not have to be reported on the FAFSA.
- Retirement accounts are not included as an asset on the FAFSA. This is a good thing because parents should not put their retirement at risk to pay for a college education.
- Child support is reported as an asset. Parents will be asked if they have received any child support and that is for the last complete calendar year. So, if you complete the FAFSA in December 2025, you will report 2024 amounts. If you complete the FAFSA in January 2026, you will report 2025 amounts.
- Balance in cash, savings, and checking accounts will be reported. The amount you report is the balance the day you are completing the FAFSA. Granted these accounts fluctuate from day-to-day. The question is aimed at getting a snapshot of what is in these accounts.
- Current net worth of investments, including real estate. Investments could include certificates of deposit (CDs), 529 accounts, and rental property.
- 529 accounts that are reported under net worth of investments will need to be reported as a parent asset. Parents who have 529 accounts for multiple children will only report the value of the 529 for the student who is completing the FAFSA. Students will not need to report any of the 529 distributions as income on the FAFSA
- The value of businesses, farms, and fisheries with 100 or fewer employees is now exempt from being reported on the FAFSA. In July 2025, federal legislation changed this asset so only those with businesses, farms, or fisheries with more than 100 employees will need to be reported.
To determine the value of an investment, the student or parent will determine the market value of the investment and subtract any debt to determine the net value, which is the amount to be reported on the FAFSA.
For more information about the reporting of assets, contact Mapping Your Future.
