What is the net worth of your parents’ current businesses and/or investment farms?

What is the net worth of your parents’ current businesses and/or investment farms?

This is question 90 on the paper Free Application for Federal Student Aid (FAFSA?) form.

Enter the net worth of your parents’ current businesses and/or investment farms as of the day you submit your FAFSA form. Net worth means current value minus debt (what is owed).

The net worth of your parents’ current businesses and/or investment farms is the amount left over after deducting the debt from the value of each investment. A negative value of one investment can’t be used to reduce the value of other investments.

For example: Your parents own two investment properties.

The first investment property is valued at $100,000. The debt that is owed on the property is $110,000.

To calculate the net worth, perform the following calculation:

(Value of Property) minus (Debt Owed on Property) = net worth

$100,000 – $110,000 = -$10,000

The net worth of this first investment property is considered $0, not negative value of $10,000.

The second investment property is valued at $200,000. The debt that is owed on the property is $100,000.

(Value of Property) minus (Debt Owed on Property) = net worth

$200,000 – $100,000 = $100,000

The net worth of this second investment property is $100,000.

If the net worth of the first investment property is $0 and the net worth of the second investment property is $100,000, then the amount to be reported for both properties is $100,000.

If the net worth value is Enter
10 million or more 9999999
Zero or less than zero 0

Round to the nearest dollar and don’t include commas or decimal points.

A business and/or investment farm value includes the market value of land, buildings, machinery, equipment, inventory, etc. Business and/or investment farm debt means only those debts for which the business or investment farm was used as collateral.

Business value doesn’t include the value of a small business if your family owns and controls more than 50% of the business and the business has 100 or fewer full-time or full-time equivalent employees. For small business value, your family includes (1) persons directly related to you such as a parent, sister, or cousin, or (2) persons who are or were related to you by marriage such as a spouse, stepparent, or sister-in-law.

For more information about reporting investments, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243; TTY for the deaf or hard of hearing 1-800-730-8913).

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