both	interest	and	principal,	as	described	in	the	discussion	of	principal	only.	If	the	trust	is	set	up	so	that	the	interest
accumulates	within	the	trust	until	it	ends,	the	beneficiary	should	report	the	present	value	of	the	interest	and	principal	that
they	are	expected	to	receive	when	the	trust	ends	as	an	asset.
In	some	cases,	ownership	of	an	asset	may	be	divided	or	contested,	which	can	affect	how	the	owner	reports	the	asset.	If
the	owner	has	only	part	ownership	of	an	asset,	the	owner	should	report	only	the	owned	part.	Generally,	the	value	of	an
asset	and	debts	against	it	should	be	divided	equally	by	the	number	of	people	who	share	ownership	unless	the	share	of	the
asset	is	determined	by	the	amount	invested	or	the	terms	of	the	arrangement	specify	some	other	means	of	division.
If	ownership	is	contested,	the	asset	should	not	be	reported	on	the	FAFSA	form.	For	instance,	if	a	couple	is	separated
and	can9t	sell	or	borrow	against	jointly	owned	property	because	it9s	being	contested,	the	net	worth	of	the	property	would
not	be	reported	as	an	asset.	If	ownership	of	an	asset	is	resolved	after	the	initial	application	is	filed,	the	value	cannot	be
updated.	If	there9s	a	lien	against	the	asset,	the	net	value	of	the	asset	is	determined	by	subtracting	any	associated	debt
and	the	amount	of	the	lien	from	its	total	value.	If	foreclosure	of	an	asset	is	imminent,	the	net	value	of	the	asset	would	still
be	reported	until	the	party	making	the	foreclosure	completes	legal	action	to	take	possession	of	the	asset.	If	the	status	of
the	property	changes	after	the	application	is	filed,	the	value	cannot	be	updated.
Excluded	Assets
The	following	are	excluded	assets	and	should	not	be	reported	on	the	FAFSA	form:
Possessions	such	as	a	car	for	personal	use,	a	sound	system,	clothes,	or	furniture.
A	family9s	principal	place	of	residence,	even	if	it	is	part	of	a	business	or	farm	property.
Retirement	and	life	insurance	plans	and	ABLE	accounts.	An	ABLE	account	is	a	tax-advantaged	savings	account
for	a	disabled	person	and	their	family;	its	value	does	not	count	as	an	asset	on	the	FAFSA	form.	The	value	of
retirement	plans4401(k)	plans,	pension	funds,	annuities,	noneducation	IRAs,	Keogh	plans,	etc.4also	is	not	counted
as	an	asset,	but	distributions	do	count	as	income.	An	exception	to	reporting	pension	distributions	is	when	they	are
rolled	over	into	another	retirement	plan	in	the	same	tax	year	(rollover).	Similarly,	the	cash	value	or	equity	of	a	whole
life	insurance	policy	isn9t	reported	as	an	asset,	but	an	insurance	settlement	may	count	as	income	if	it	is	included	in
the	student9s	AGI.
Excluded	assets	for	Native	American	students.	The	law	excludes	reporting	any	income	and	asset	of	$2,000	or
less	per	individual	payment	(any	amount	over	$2,000	is	reported	as	an	asset	of	the	recipient)	received	under	the	Per
Capita	Act	or	the	Indian	Tribal	Judgment	Funds	Use	or	Distribution	Act.	It	also	excludes	any	income	received	under
the	Alaska	Native	Claims	Settlement	Act	or	the	Maine	Indian	Claims	Settlement	Act.	Per	capita	distributions	or	the
proceeds	received	from	the	Land	Buy-Back	Program	for	Tribal	Nations4a	tribal	purchase	of	fractionated	lands
because	of	the	Cobell	settlement	under	the	Claims	Resolution	Act	of	2010	(42	U.S.C.	1305)4should	also	be	excluded.
Colleges	(23)
For	a	school	to	be	able	to	receive	the	student's	data,	the	student	must	list	the	college9s	federal	school	code	(not	the	OPE
ID)	or	enter	its	complete	name,	address,	city,	and	state.	There	is	a	federal	school	code	search	in	the	online	FAFSA	form,
and	the	entire	list	of	school	codes	is	available	as	a	Microsoft	Excel	spreadsheet	and	an	Adobe	PDF	document	on	the
Knowledge	Center	website	under	the	Library	section9s	<Publications	by	Resource	Type=	area.
The	student	can	list	up	to	10	schools	on	the	paper	(PDF)	FAFSA	form	and	20	on	the	web	(at	least	one	school	is	required).	If
a	student	wants	their	information	to	be	available	to	more	schools,	they	can	change	the	schools	listed	online	or	use	their
FAFSA	Submission	Summary.	The	FPS	will	send	data	to	no	more	than	20	(10	with	the	PDF	FAFSA	form)	schools	at	a	time.
Chapter	4	explains	how	students	can	add	or	change	schools.
Excluded	assets	for	Native	American	Students
HEA	Sec.	479C
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