The rules of which Parent Assets are counted in calculating your Student Aid Index – or ability to pay for college – differ from FAFSA and CSS Profile. While there are assets in common, there are exceptions. This chart summarizes which Parent Assets are counted and which are protected.
Parent Assets Counted and Protected by FAFSA and CSS Profile
| Parent Asset | FAFSA | CSS Profile |
|---|---|---|
| Checking | Counted | Counted |
| Savings | Counted | Counted |
| CDs (Certificate of Deposits) | Counted | Counted |
| Brokerage Accounts | Counted | Counted |
| Non-retirement annuities | Counted | Counted |
| Trusts | Counted | Counted |
| 529 & College Savings Plans | Only Plans owned by parents that benefit the student applicant | All Plans owned by parents, including those that benefit other children |
| Equity Value of Second Properties | Counted | Counted |
| Equity Value of Primary Home | Protected | Varies by college; see this resource |
| Retirement accounts, e.g. 401k, 403b, IRAs, pensions, etc.. | Protected | Protected |
| Qualified annuities | Protected | Protected |
| Health Savings Accounts (HSAs) | Protected | Protected |
| Life Insurance | Protected | Protected |
| ABLE Accounts | Protected | Protected |
Impact of Parent Assets on the Student Aid Index
When an asset is counted, the reported amount contributes roughly 5% toward your Student Aid Index. Protected Assets have zero impact on your Student Aid Index. No counted asset is weighted more than another, like a 529 or College Savings Plan. College Savings Plans also contribute 5%.
Example 1
Parent assets reported on the FAFSA:
| Asset | amount |
|---|---|
| Parent Checking Account | $2,500 |
| Parent Savings Account | $4,000 |
| Student 529 Plan owned by Parent | $39,000 |
| Parent Equity in Second Property | $150,000 |
| Total Parent Assets | $195,500 |
Contribution to SAI from Parent Assets = Total Parent Assets x 5%
Contribution to SAI from Parent Assets = $195,000 x 5% = $9,775
Example 2
Parent assets reported on the FAFSA:
| Asset | amount |
|---|---|
| Parent Checking Account | $4,500 |
| Parent Savings Account | $40,000 |
| 529 Plans for two children owned by Parent | $80,000 |
| Brokerage Account | $27,000 |
| Total Parent Assets | $195,500 |
Contribution to SAI from Parent Assets = Total Parent Assets x 5%
Contribution to SAI from Parent Assets = $151,500 x 5% = $7,595