For the purposes of FAFSA, How do I determine the net worth of my timeshares?

[skimble]

How do I determine an agreeable net worth for my timeshares? I need to claim this for FAFSA for my son to qualify for financial aid for college.

 

[DeniseM]

You would list the fair market value, which looking at your timeshares is probably very little.

If it were me, I would probably not list them, because listing multiple timeshares at $1 each may just create questions.

 

[skimble]

That's just it... I would list them as having $1 value, but there is no place to itemize. It's just a open-ended question about net-worth.
So, I included them all as having zero value.

 

[VegasBella]

That's just it... I would list them as having $1 value, but there is no place to itemize. It's just a open-ended question about net-worth.
So, I included them all as having zero value.

even CBI?

I think all together they're worth at least $5k.

 

[Luanne]

Hmmm, I don't remember ever including the timeshares when I did the FAFSA for either of my daughters.

 

[VegasBella]

You're supposed to value your assets
https://fafsa.ed.gov/help/assetnetworth.htm

For most government purposes, timeshares are assets. We at TUG tend to value them differently, more like we value gym memberships, but on paper they are usually technically assets.

 

[Luanne]

You're supposed to value your assets
https://fafsa.ed.gov/help/assetnetworth.htm

For most government purposes, timeshares are assets. We at TUG tend to value them differently, more like we value gym memberships, but on paper they are usually technically assets.

Then, ooops.

 

[DeniseM]

Luanne - The fair market value is what you could actually sell your timeshares for on the resale market, not the developer price, so I think you did it correctly.

Sometimes timeshare owners just "feel" that their timeshare is worth more than what it's selling for on ebay or the TUG Bargain Deals forum. But to value your timeshare at a higher price, just so you can feel good about it, really doesn't make financial sense. Especially on a FASFA application where you certainly don't want to exaggerate your net worth.

 

[skimble]

even CBI?

I think all together they're worth at least $5k.

or more because of the unit and time of year....
But... I could go to Ebay and purchase week 41 for $1.

 

[billymach4]

FAFSA what a PITA! Good luck. Sorry to be a downer. But it is so futile to apply for Financial Aid for college these days. But it is one of those necessary evils in life.

Death, Taxes, FAFSA

 

[Luanne]

FAFSA what a PITA! Good luck. Sorry to be a downer. But it is so futile to apply for Financial Aid for college these days. But it is one of those necessary evils in life.

Death, Taxes, FAFSA

While my daughters didn't get financial aid they did need the FAFSA for student loans.

 

[billymach4]

While my daughters didn't get financial aid they did need the FAFSA for student loans.

Were they the Federal Guaranteed loans?

 

[Luanne]

Were they the Federal Guaranteed loans?

I don't remember. It's been awhile.

 

[TUGBrian]

http://www.tugbbs.com/forums/showthread.php?p=1780344#post1780344

 

[Tia]

Were they the Federal Guaranteed loans?

There are subsidized and unsubsidized student loans https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized

 

[Luanne]

There are subsidized and unsubsidized student loans https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized

As I am now remembering one daughter had only unsubsidized loans and the other had a mix. I don't remember the criteria for how/why the one got some subsidized loans. I am now assuming that both are Federal Guaranteed loans.

 

[VegasBella]

or more because of the unit and time of year....
But... I could go to Ebay and purchase week 41 for $1.

I don't think the government looks at that way.
They will always value the timeshare however they can get more money (taxes) or how they will give less money (welfare etc).

And honestly, Carlsbad Inn units are truly worth a couple grand regardless of the season. Will they sell quickly? If it's not Summer then probably not. Are your other ownerships worth very much? Probably not, even if they're Summer units you might have to offer incentives to sell them. But overall you would very likely be able to get rid of them and end up with a bit of cash.

But are they going to question you on this over a FASFA application? Unlikely.

 

[skimble]

You're supposed to value your assets
https://fafsa.ed.gov/help/assetnetworth.htm

For most government purposes, timeshares are assets. We at TUG tend to value them differently, more like we value gym memberships, but on paper they are usually technically assets.

OK... I know this is out of the realm of the timeshare talk a bit....
but this link (very helpful) says I need to include real estate, cash, investments, etc as assets. We do not need to include our retirement and our home.
We got an inheritance last year which included a condo, being lived in by a family member who is simply paying the mortgage until he gets back on his feet. This condo is a big part of our retirement plan. Is FAFSA going to look at this $150k asset and count it against my son's eligibility?

 

[taterhed]

OK... I know this is out of the realm of the timeshare talk a bit....
but this link (very helpful) says I need to include real estate, cash, investments, etc as assets. We do not need to include our retirement and our home.
We got an inheritance last year which included a condo, being lived in by a family member who is simply paying the mortgage until he gets back on his feet. This condo is a big part of our retirement plan. Is FAFSA going to look at this $150k asset and count it against my son's eligibility?

Second homes absolutely DO count as an asset. Whether you consider it retirement or not is immaterial. Market value less debt less selling expenses.

http://www.thecollegesolution.com/8-financial-aid-mistakes-to-avoid/

Finally, I'm a bit curious: When you pass a certain limit, the FAFSA values for financial aid have little effect on further eligibility unless you have a lot of kids in school or other special circumstances. Have you run any of the calculators to see your position? Just change the numbers in the boxes and see if it makes a difference. I did. No movement at all. Everybody's situation is different of course.

Know this: Universities do not have the same rules/considerations that FAFSA has. For the purpose of financial aid (and any other benefits) the rules can be very different (and usually are). I would spend more effort on finding good loans (if that's your goal) outside of FAFSA via student aid at the university etc...

Frankly, if you have a second home, timeshares, live in Cali etc... you're probably a hair above the marginal threshold. Of course, I know nothing about your circumstances.
Good luck

 

[skimble]

Second homes absolutely DO count as an asset. Whether you consider it retirement or not is immaterial. Market value less debt less selling expenses.

http://www.thecollegesolution.com/8-financial-aid-mistakes-to-avoid/

Finally, I'm a bit curious: When you pass a certain limit, the FAFSA values for financial aid have little effect on further eligibility unless you have a lot of kids in school or other special circumstances. Have you run any of the calculators to see your position? Just change the numbers in the boxes and see if it makes a difference. I did. No movement at all. Everybody's situation is different of course.

Know this: Universities do not have the same rules/considerations that FAFSA has. For the purpose of financial aid (and any other benefits) the rules can be very different (and usually are). I would spend more effort on finding good loans (if that's your goal) outside of FAFSA via student aid at the university etc...

Frankly, if you have a second home, timeshares, live in Cali etc... you're probably a hair above the marginal threshold. Of course, I know nothing about your circumstances.
Good luck

I do not make a lot of money... I'm a teacher, sole income earner for my household. I've managed money fairly well-- much like the timeshare game.

This is snarky and sarcastic, but I guess this comment from the article sums up my feelings right now:

Grizzy Feb 7, 2015
"The most important thing to remember is the more debt you have the greater the financial aid you will get. Buy the biggest home you can afford with the highest outstanding mortgage. Do not invest in 529 plans. Do not invest in stocks or other investments. Go on vacation to Europe, lease all your cars and stay in debt. College will be paid in full by the government. Those that are responsible and pay off their mortgages, cars and invest in their children's future will pay for your kid. That is the reality of FASFA!"

 

[taterhed]

I do not make a lot of money... I'm a teacher, sole income earner for my household. I've managed money fairly well-- much like the timeshare game.

Ok. First: I'm not judging. I have a lot of friends who earn a LOT of money (but have HUGE bills!) who were very surprised to learn just how high their expected annual contributions were. If you're a hard working teacher earning meager teacher’s salary (I think teachers are underpaid) and supporting a family, I salute you.

If you earn under $50k a year, you have a substantial chance of earning Federal and Private (College) assistance. If you earn under $100k a year, odds are you'll receive Private assistance and may qualify for some grants or reduced loans. If you earn over $100k a year, it's unlikely you'll receive Federal assistance (except in special circumstances). Depending on your child's academic standing and other factors, you'll likely receive some Private assistance. But: I have a friend who earns well over $100k. His daughter received almost 50% of her tuition in grants (or similar wording) based on the school's desire to recruit students matching her profile.

To comment on your sarcasm above: take a low-interest loan on your 'investment' property for your student. Lower than student loan rates and possibly tax deductible.

Here's a great summary of current student loan amounts and limits.
https://www.scholarships.com/financial-aid/student-loans/stafford-loans/


Subsidized Loan Limits: Loan limits on the Subsidized Federal Stafford Loan are the same for dependent and independent students.

Undergraduate Grade Level Subsidized Stafford Loan Annual Loan Limits
Freshman $3,500
Sophomore $4,500
Junior, Senior and Beyond $5,500
Cumulative Limit $23,000

As this table illustrates, more than a third of subsidized Federal Stafford loans to undergraduate students in 2011-2012 were made to students with family adjusted gross income (AGI) less than $50,000 and about a fifth to students with AGI between $50,000 and $100,000.

Distribution of Loans by AGI
Family Adjusted Gross Income (AGI)
Loan Program < $50,000 $50,000 to $100,000 $100,000 or more
Subsidized Stafford 71.7% 21.2% 7.2%
Unsubsidized Stafford 63.5% 22.3% 14.2%

- See more at: https://www.edvisors.com/ask/faq/government-student-loans/#sthash.adVrNK5i.dpuf

Finally, we're really only talking about $23k in subsidized loans. Unsubs are just 1% (approx) higher. It's really the financial aid package from the university that can matter. My daughter got $4k a year. That really helps
Call your timeshares a $1000 bucks a piece. 5% of that will be added to your expected contribution. That's peanuts.
The real estate 'investment' is going to set you back though. No way around that one. But, its net value (20% less than market?) minus selling expenses and debts, so you can reduce the number considerably.

cheers.

 

[raygo123]

You may want to see if your union has grants or loan programs

Sent from my Nexus 7 using Tapatalk

 

[Jason245]

Value the TS as nothing. I highly doubt you would be questioned on that. As for all this other fafsa discussion. .. unless they are getting a degree in an employable field (trade of some type such as accounting, dr, plumber electrician ).. getting loans is a bad idea. . (Just the opinion of someone who has seen one too many marketing major earning 30 to 40k per year with over 50k in loans).

Sent from my SAMSUNG-SM-N910A using Tapatalk

 

[Luanne]

Value the TS as nothing. I highly doubt you would be questioned on that. As for all this other fafsa discussion. .. unless they are getting a degree in an employable field (trade of some type such as accounting, dr, plumber electrician ).. getting loans is a bad idea. . (Just the opinion of someone who has seen one too many marketing major earning 30 to 40k per year with over 50k in loans).

Sent from my SAMSUNG-SM-N910A using Tapatalk

That's easy to say. But do you have any other viable ways of financing a college education?

 

[DeniseM]

That's easy to say. But do you have any other viable ways of financing a college education?

My kids went to community college, and then our local state college. No loans required. I realize that isn't as prestigious as going to a nationally known college, but in many careers, going to an expensive college does not help you get a job, or a high salary.

My cousin's daughter was accepted to Yale, and even though is was not within their means, they really wanted her to go, so they took out massive loans. Now she is a kindergarten teacher, with massive loans to pay off.