A family business or farm is not counted at full value on the FAFSA. It is discounted on a federal schedule before it becomes a parent asset — and the discount is deepest on the first dollars. Enter the net worth to see the reportable figure for —.
| If the net worth of the business is | It is adjusted by | Counted as a parent asset |
|---|---|---|
| Total adjusted net worth of the business | $0 | |
The federal schedule is marginal, exactly like income tax brackets: the first band of net worth is counted at its own rate, the next band at the next rate, and so on. A business worth more than — is not counted at one flat rate — every band below it still contributes its own line, and only the amount above that threshold is counted dollar for dollar.
Net worth is the value of the business or farm minus the debts against it. Nothing you type here leaves your browser.