How Colleges Use Your Home Equity in Financial Aid Calculations
If you’re a homeowner, your equity might be an invisible asset that affects your student’s financial aid eligibility—especially at private colleges that use the CSS Profile.
At Diversified College Planning, we help families understand when home equity matters, how it’s calculated, and how to protect your aid eligibility if your home’s value puts you at a disadvantage.
FAFSA vs. CSS Profile: The Key Difference
The FAFSA does not consider home equity—but the CSS Profile does. That means if you apply to schools that use the CSS Profile, your home could reduce your financial aid offer.
Some colleges assess home equity at:
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Full value
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A capped percentage (e.g., 1.2x family income)
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Or not at all—it depends on the institution
What You Can Do
While you can’t hide home ownership, you can plan around it:
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Target colleges that don’t consider home equity
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Understand how each school applies equity in its aid formula
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Strategically time applications or appeal aid decisions if equity distorts your profile
We guide families through these nuances so they don’t overpay just because they built equity in their home.
Contact Us Today:
Worried your home equity might reduce your aid? Let’s create a smarter plan before you apply.
📞 Call us at 770-662-8510
📅 Schedule a free consultation: Book with Mike
Or visit our Contact Page: https://diversifiedcollegeplanning.com/contact-us/
