DVC and FAFSA

[photobob]

Thanks, ours is in Kindergarten, so not familiar with college aid. Hopefully we won't have to be as we did a PACT (pre-paid tuition program) a few years ago for her. Everyone at the time told us to "invest it in the market" and that would be a better return than the PACT, but given the state of the market the past year, I think that the PACT turned out to be good move...

We did a PACT on our son as well, he is soon to finish Jax State. We had to do the FAFSA on him because he works as a student assistant in the Sports Information Dept. They pay him 15 hours per week at minimum wage I believe. For him to be able to get that paid position it is just like student aid, you have to be eligible through FAFSA to get the job.

BTW when he went to register for this semester he found out that his PACT plan was depleted. Through changing majors and dropping a couple of classes mid-term his hour allotment had been used up. I had to come up with an extra $2800 to pay for his tuition right around Christmas. Lovely.

 

[edk35]

Add me to the FAFSA hater club. I didn't put DVC on there....didn't even cross my mind. I don't think it matters because because according to the FAFSA report...we are responsible for like 36,000. So ......I am not too concerned.

 

[5forDiz]

Add me to the FAFSA hater club. I didn't put DVC on there....didn't even cross my mind. I don't think it matters because because according to the FAFSA report...we are responsible for like 36,000. So ......I am not too concerned.

Yep same here; we asked our accountant and he said pretty much what some others here have said about not listing dvc (timeshare de-values etc), that and we're responsible for $30,000plus on each of our 4th yr & 1st yr kids Thank goodness they both got decent partial 4 yr scholarships and we've got six years before our youngest goes.


/

 

[rbuzzotta]

bumping because I don't know how to link this to someone curious about FAFSA and DVC

 

[Ksp]

So it would seem that there is no definitive answer as to whether our DVC holdings actually belong on the FAFSA; if we have paid off our loans/own our points outright, is it truly considered an asset and do we really have to put it down on the FAFSA?

 

[Dean]

So it would seem that there is no definitive answer as to whether our DVC holdings actually belong on the FAFSA; if we have paid off our loans/own our points outright, is it truly considered an asset and do we really have to put it down on the FAFSA?

I don't think that's true. What people actually do is all over the place and it's unlikely one would get caught if you didn't list it but it's clear that the form is asking for anything of value minus what's owed. DVC certainly fits that definition. Here's the info from the FAFSA info which clearly states the type of things excluded and implies everything else of value is reportable.

The net worth of your investments includes real estate except for the house you live in, UGMA/UTMA accounts in your name (student's name), stocks, bonds, money market funds, etc. It's easier to say what is NOT included: retirement plans, life insurance, the house you live in. Some things, like 529 plans, are generally reported as parental investments rather than student investments.

 

[Ksp]

Dean, I do agree that the FAFSA statement is quite clear (which is why I have reported our DVC contracts as assets for both our kids and my own graduate school forms - we don't hold any loans on them), but there is a wealth of diversity in how all of us (those posting to this thread) have handled it.

I was most interested to read the posts which mentioned either their accountant or even DVC CM counseling that our points aren't worth reporting - it then becomes a bit confusing for me.

My one remaining question would speak only to valuation of the asset; do you value this at your full buy-in price, or is there a depreciation at work on the asset value?

 

[Cruelladeville]

Many of you are making the FAFSA more difficult than it has to be. I sent two kids thru college and never listed any timeshares as assets. The reason: a timeshare really has no inherent value. Now, we know that DVC has value, but what if you owned most of the other timeshares in Orlando? They are not worth the paper the ownership is printed on, even if you paid $15,000 for them originally. Tomorrow our DVC might be worth $0, so leave it out as an asset. Besides, nobody for FAFSA is going to check any of that stuff, except for the info about your house, and actual vacation homes, and things like that. At least, that's what two accountants told me, and after putting both kids thru school, I noticed that the scholarship money is based on your yearly salary, more than anything else.

 

[Dean]

Dean, I do agree that the FAFSA statement is quite clear (which is why I have reported our DVC contracts as assets for both our kids and my own graduate school forms - we don't hold any loans on them), but there is a wealth of diversity in how all of us (those posting to this thread) have handled it.

I was most interested to read the posts which mentioned either their accountant or even DVC CM counseling that our points aren't worth reporting - it then becomes a bit confusing for me.

My one remaining question would speak only to valuation of the asset; do you value this at your full buy-in price, or is there a depreciation at work on the asset value?

Valuation would vary based on the points available, contract size and home resort. I could also see how the valuation would vary based on individual variations. Somewhere in the $50 a point range would be reasonable and with a load of my substance, it'd be a non issue. And it's unlikely $5 or $10K would make much difference on the parents side but it could make a HUGE difference on the students side. One reason not to list them as an owner at that age.

Many of you are making the FAFSA more difficult than it has to be. I sent two kids thru college and never listed any timeshares as assets. The reason: a timeshare really has no inherent value. Now, we know that DVC has value, but what if you owned most of the other timeshares in Orlando? They are not worth the paper the ownership is printed on, even if you paid $15,000 for them originally. Tomorrow our DVC might be worth $0, so leave it out as an asset. Besides, nobody for FAFSA is going to check any of that stuff, except for the info about your house, and actual vacation homes, and things like that. At least, that's what two accountants told me, and after putting both kids thru school, I noticed that the scholarship money is based on your yearly salary, more than anything else.

I would totally disagree. As you say, DVC has value, we're not talking a different timeshare many of which also have value. There is a LIQUID market for DVC so to argue it shouldn't be included seems hard to support given the wording of the form. I suspect many don't think of it and there is little chance one would get caught if you didn't list it which is why I'm sure an accountant would say not to. BTW, I've also seen them say not to list rental income from DVC on your taxes. As for changing values, one could say that about your house, stocks or anything else of value.

 

[oakmanner]

 

[keishashadow]

Many of you are making the FAFSA more difficult than it has to be. I sent two kids thru college and never listed any timeshares as assets. The reason: a timeshare really has no inherent value. Now, we know that DVC has value, but what if you owned most of the other timeshares in Orlando? They are not worth the paper the ownership is printed on, even if you paid $15,000 for them originally. Tomorrow our DVC might be worth $0, so leave it out as an asset. Besides, nobody for FAFSA is going to check any of that stuff, except for the info about your house, and actual vacation homes, and things like that. At least, that's what two accountants told me, and after putting both kids thru school, I noticed that the scholarship money is based on your yearly salary, more than anything else.

Financial aid office @ both my 2 older DSs schools said not to report, note we paid cash , i sure wasn't going to argue the point

fyi, for those who haven't yet filled out the report, it is a most sobering moment when the anticipated contribution amount pops up

hate the fact that it penalizes those who have (non-ira) savings in place, whether earmarked for college or not

ps i recall needing to have the form completed by mid Feb in PA

 

[Dean]

Financial aid office @ both my 2 older DSs schools said not to report, note we paid cash , i sure wasn't going to argue the point

The schools have a vested interest in getting you to qualify for federal money, no surprise they suggest you fudge. Plus when they think of timeshares, it's not the same as DVC and in most cases there really is little value.