American College Funding

Mortgage Considerations

Many people believe if they own a home or have high equity in their home they can't qualify for financial aid. This is false.

The Federal and State formulas do not look at home equity, nor does the CSS Profile form. However, some schools DO ask about home equity when determining school-sponsored awards.

Therefore it is important to understand the policies and history of the colleges to which you are applying to determine how your home ownership is going to affect your aid package. As with almost every aspect of financial aid planning, there are legal and ethical ways to position the equity in your home to maximize your aid awards.

That being said, for many people the equity in their home is their number one source of "savings." And many go into the college planning process either planning to - or afraid they will have to - tap the equity in their homes to get their kids through college. Over the course of the years, our national organization has helped thousands of families across the country assess their situations and determine the best way to solve this and other challenges facing them in the financial aid battle.

For the most part we can help families determine whether they should or should not worry about the equity in their homes with regard to their aid awards. Then, whether they need to reposition or not, we can show them the best way to use that equity to not only help their kids get through school, but to be in a position to pay off their mortgages on time, and strengthen their retirement plans to boot.

For the past eight years our partner in this process has been the Clear Creek Agency in Smithville, OH. They are experts in the special challenges facing families in the financial aid trenches, and will be a wonderful partner for you as well. To access their website, click here.
Web Hosting Companies