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[FAFSA®] Does the FAFSA® ask about any debt like mortgages, car loans, or credit card debt?

No. Unfortunately, the FAFSA® does not ask about or take into account any consumer debt.

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Written by Eleanna Garcia
Updated over a week ago

No. Unfortunately, the FAFSA® does not ask about or take into account any consumer debt. It will only take into account any outstanding debt related to your investments. For example, if you have investment real estate (i.e., a property OTHER than the home you live in), any mortgages on that property will be considered. However, any personal debt (from car loans, your home mortgage, etc.) will not be acknowledged.

The reason for this is that the FAFSA® in general doesn’t ask about personal assets, like cars or your primary home. It will not include the value of your car(s) or primary home in your net worth, so then it also will not discount any outstanding debt you might have on those assets.

In general, this works out okay for most families, but if you feel that your family has extreme debt that affects your monthly budget and ability to pay for college, then you can write an appeal letter directly to your college explaining your financial situation, and to request an adjustment in your financial aid package. You can say the FAFSA® didn’t allow you to show the full picture of your family’s finances, and that in reality, you need more financial aid.

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