DVC as "investment" (college aid ?)

[MiaSRN62]

Hi ~
In the process of filling out financial aid forms for my son. He will start college in the fall.
One of the questions asks : As of today, what is the net worth of the student's parents' current investments (question 82)?
Net worth means current value minus debt. If net worth is one million or more, enter 999999. If net worth is negative, enter 0.
Investments include real estate (do not include the home the student lives in), trust funds, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, education IRAs, college savings plans, installment and land sale contracts (including mortgages held), commodities, etc. Investment value includes the market value of those investments as of today. Investment debt means only those debts that are related to the investments.
My question is......I'm assuming our DVC must be listed as a real estate investment ? We still owe on ours so I guess I need to call Member Services and see what our present balance owed is and then subtract it from fair market value if I were to sell it ? Has anyone else encountered this and listed DVC as an investment ? Thanks for any help you can give.

 

[disneycrazed139]

I guess it's up to you whether you want to list it on your faf as an investment. It's not exactly like traditional real estate though. Personally, I think that if you still owe money on it, it's no different than a car loan (if you consider the car that you own money on to be an asset listed separately, than I would do the same with this.) Otherwise, perhaps it's a debt to be listed.

Anyone else know?

 

[TheRustyScupper]

1) I would not list DVC on the form.
. . . It is not an investment, as it is a lease interest.
. . . Adding it would increase your net worth.
2) The object of a financial form is to GET finances.
3) The more you have, the less you get.

 

[dianeschlicht]

I agree with Rustyscupper! It is not really a real estate ownership, but a lease. This puts it as an expense, but not an investment.

 

[MiaSRN62]

Thank you so much all. I was looking for some validation as to what to do. My dh was questioning it also. I appreciate your input !

 

[SlyHubby]

1) I would not list DVC on the form.
. . . It is not an investment, as it is a lease interest.
. . . Adding it would increase your net worth.
2) The object of a financial form is to GET finances.
3) The more you have, the less you get.

Though these may be your thoughts, there are clear and set rules as to what you must disclose as far as the financial aid forms go.

Everyone knows the "object" of the forms, and that the more you have the less you get, however, neglecting to list something which is required to be listed will ultimately get you in a worse situation. Because we know the "object" doesn't mean we can include or exclude things as we'd like.

It is a grey area in my mind and I wouldn't take the word of anyone who gives an answer on this board. Write or call them to get a definitive answer and be sure you are doing the right thing.

http://www.fafsa.ed.gov/contact.htm

 

[DrTomorrow]

1) I would not list DVC on the form.
. . . It is not an investment, as it is a lease interest.
. . . Adding it would increase your net worth.
2) The object of a financial form is to GET finances.
3) The more you have, the less you get.

Hey, I get it now! If you leave off any other assets you have: home, car(s), stocks, bonds, bank accounts, then your net worth will be lower and you'll get more financial aid!

What? You mean that the government keeps track of these things? Particularly if you report any of them on your tax forms? Oh.

What? You mean that if you deliberately lie on your FAF, not only might you be taking $$$ from more needy folks (say, folks that don't own/lease Disney timeshares), but you also might lose any financial aid you truly are entitled to? Oh.

You said you wanted validation - RustyScupper gave it to you. If you want to "do the right thing", listen to Sly Hubby: there must be a definition of investments / assets for the form, or someone to contact if that definition isn't sufficient.

Be well!

 

[drusba]

The above advice about not reporting it is not correct. You are filling out FAFSA. I have done it a few times. Failure to provide any requested information can result in the loss of financial aid for college. The FAFSA explanation books, also put out by the government, say that the section you are dealing with includes listing second homes, summer homes, and timeshares in the assets you must report in that investment section.

 

[MiaSRN62]

You said you wanted validation

Just to be clear about how I saw this......
I wanted validation in reference to whether DVC was an actual investment. Many people on here say it is not......when it was stated it was a "lease" vs "ownership". For what it's worth, I have every intention of listing my Vistana timeshare because we own it outright forever (thus I didn't even mention this anywhere in my post). I simply wasn't sure if DVC was in the same category as a traditional (non-leased) timeshare was. So THAT is what I meant by I was validated. Of course I would never leave off mutual funds or any other assets....just a little fuzzy about my DVC because 1) we still owe on it and the instructions specify "Net worth means current value minus debt" 2) it's a lease. It's def not the same type of "ownership" I have with Vistana.

there must be a definition of investments / assets for the form

The only things listed on the actual application are what I copied and pasted in my OP. I'm not trying to get away with anything (or lie) as insinuated....just wondering if anyone had experience with this and college apps. Also, I did call and even the guy I spoke with was very vague when I explained to him about DVC and also my Vistana timeshare. I figured I'd see if anyone had some first-hand experience with DVC particularily.
Thanks for the web address SlyHubby....that is exactly where I'm filling out the online app. I even went to the "help" section to see if they specified anything about leased timeshares. Couldn't find anything.

FAFSA explanation books, also put out by the government, say that the section you are dealing with includes listing second homes, summer homes, and timeshares in the assets you must report in that investment section.

Thank you very much drusba. I'm working on the application online and could see no clarification or even mention of timeshares. I appreciate your help.

 

[manning]

If you have a financial adviser or CPA........ask him/her!!!

I will give you my opinion shortly as soon as the coin I flipped lands!!!

 

[MiaSRN62]

If you have a financial adviser or CPA........ask him/her!!!
I will give you my opinion shortly as soon as the coin I flipped lands!!!

I do not have one.
And I'm sorry I even asked the question considering the sarcasm I'm getting.
This is my first time with college applications and the past several months have been hectic, confusing and stressful (dealing with a son applying to college and all the interviews, tours and open houses that accompany that at the same time dealing with family over my deceased mil's estate). We got a late start on all this college stuff (and feel the stress of deadlines now) because of caring for my terminally ill mil in our home.
Feel like I'm drowning in a sea of paperwork and just felt I'd pose an innocent question here. Thanks to those that offered advice and experience without the insinuations, judgements or sarcasm. But I will pursue this on my own from here on out. No need to reply any more, thanks.

 

[RobDoc]

... I even went to the "help" section to see if they specified anything about leased timeshares. Couldn't find anything. ...

Just to clarify, DVC is NOT a "leased timeshare". We own a deeded interest in the property - recorded with the county. It is represented as a % of a specific building. The "lease" description made by some here comes from the fact that there is an expiration date, but until that date we do maintain ownership and that ownership retains some "value". With most timeshares, a specific unit is "owned" for a specific week each year. Those owners know exactly what room/villa/unti they will stay in for the life of their ownership (whether it expires or not). I can't recall ever seeing the term "lease" used in any of the ownership descriptions- it has usually been listed as a "deeded ownership interest". Regardless how it may be described, it is definitely an asset and does have some "value" that can be assigned in response on the FAF.

In this case, you might consider listing your purchase price and deducting the mortgage balance as the current "value" of the property, but as with most things, it may be best to seek the advice of your tax advisor or attorney regarding how to answer the specifics on the FAF.

 

[MiaSRN62]

In this case, you might consider listing your purchase price and deducting the mortgage balance as the current "value" of the property, but as with most things, it may be best to seek the advice of your tax advisor or attorney regarding how to answer the specifics on the FAF.

Thanks Doc for the clarification .....I think the expiration date on the deed honestly did put a little doubt there for me.
I don't have a tax advisor or attorney (except the one we've retained to help us handle my mil's estate. She is specifically an estate lawyer).
I appreciate the input though. I'll be calling MS on Monday to determine what our mortgage balance is.

 

[Dean]

If you have a financial adviser or CPA........ask him/her!!!

I will give you my opinion shortly as soon as the coin I flipped lands!!!

They will likely have no clue about FAFSA and you'd be less than smart to rely on their advice unless they actually reviewed the rules on the subject. You're being asked for an approximation as you're not getting appraisals and the like. And I believe it asks for an overall value, not an itemization. So unless you don't own a home or own a ton of DVC points, it will likely not make any difference regardless.

 

[SlyHubby]

Thanks for the web address SlyHubby....that is exactly where I'm filling out the online app. I even went to the "help" section to see if they specified anything about leased timeshares. Couldn't find anything.

But did you pick up the phone and call them?

The page I provided was not intended so you could look up help on line - it was so you can contact them directly and get the right answer. Pick up the phone and call them - the phone number is right there.

You are getting all sorts of opinions as to what to do (getting a financial advisor/planner, CPA, tax attorney, involved), and it's clear to me, that you (and everyone here) still don't know for sure what the right answer is.

Before you call MS and do what you think you are supposed to, why don't you call the people who will give you the right answer?

"For questions regarding problems or difficulties using the Free Application for Federal Student Aid (FAFSA) on the Web, or specific questions about the FAFSA, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or 1-319-337-5665."

I don't think it could be any more clear than that.

I appreciate your situation, however, I think you are going about figuring out what to do or how to list the information entirely the wrong way.

Good luck.

 

[MiaSRN62]

But did you pick up the phone and call them?

I think you are going about figuring out what to do or how to list the information entirely the wrong way.

I did call them SlyHubby (see my post #9)......I'm sorry if this is the wrong way, but I did read over the FAF web site, go through the "help" section, call FAF and post here. I figured calling MS and determining what my balance was would suffice ? Then I would just list the "fair market value" of my DVC less the balance I owe ? I don't want to have to hire another lawyer or financial planner just to fill out student aid forms ? The estate lawyer is costing us enough $ every month since Sept. My husband is so consumed with executor responsibilities for his mom's will, and I've been trying to handle everything else (federal tax returns and the student aid) on my own mostly.
But you're right, I never should have posted this question here. Thank you anyway.

 

[Corinne]

Hi Maria:

I can totally relate to you as our first son is off to college in the fall as well. It is such a stressful time, and to add to my stress, I missed the deadline for the FAFSA application (it was March 1st for my son's first choice). In all honesty, it never even occurred to me to list DVC as an asset! I wish you luck with your application! I am sorry you received so many sarcastic replies.

 

[MiaSRN62]

Thanks Corinne ! I wish you luck as well with the college process !

 

[BobH]

Unless you own a very high number of points I expect that your DVC ownership will not drastically change your colege aid. I had 2 kids in college and I used to use one of the financial aid calculators that were available on http://www.finaid.org to put in my financial situation and run the numbers to get an estimate of how adding or deleting items would change my estimated aid. Try one of these calculators and add 15,000 or different amounts and I think you might find the impact is not as great as you fear it might be. Good luck. I have been in your situation myself.

 

[Cruelladeville]

I am an old hand at FAFSA's, having filled out three of them. I put DVC on one, but not on the others, and it didn't make a bit of difference one way or the other, in terms of financial aid. Disney doesn't report who owns what, so there isn't any real way for the government to check out your info. I figured they would at least contact me on the other FAFSa's to find out what had happened to our investment(it got sold to pay for college, of course!), but no one ever did.