Gail Holt: [00:00:00] At schools that, that use the CSS Profile for, um, all of those years. Uh, so I am excited to share with you the benefits, uh, about why this is a good thing. So we will, um, start. I think people are mostly familiar with, uh, how to participate if you want to with questions and things. Um, and we will, uh, as Shawn said, this will be shared later as, as well.

It’s really great to participate as, um, a collaborator with, with MEFA, uh, as a state authority and a nonprofit entity, because we’re all in this to help families. And so the ability for, for MEFA to help connect, uh, me with you and all of our families with the great webinars that they do, um, has been the mission since, since the early ’80s.

And so we’re glad to have this partnership [00:01:00] and, and glad that you’re joining us today. So today we’re gonna really, um, deep dive into the CSS Profile. Uh, the CSS Profile is a product of the College Board. That was another partnership that, it came about, um, a long time ago and was, has, has helped to, uh, with colleges and universities, develop the institutional methodology, uh, that we use to help families, help us calculate how we can distribute financial resources to families.

The CSS Profile is the, the mechanism, uh, in which we can collect financial aid information from families. So there are, you know, a couple hundred colleges and universities that, that do use the profile for this purpose. Um, I’m sure that you’re all, uh, familiar with the FAFSA, and that is the federal form, the [00:02:00] Free Application for Federal Student Aid.

And all colleges do need to require the FAFSA in order to distribute federal funds. Um, it is the only, the FAFSA is the only form that can be used to determine eligibility for federal funds. But unfortunately, the federal funds are not enough to meet the full need of, of families that, uh, are looking to attend private colleges that are higher cost.

And so colleges that have a significant amount of their own funds in terms of, you know, millions and billions in terms of an endowment that offer, you know, substantial sup- support to students, um, use, use the profile So the profile, um, opens at the same time as the FAFSA, and that would be October 1st.[00:03:00]

But typically it will, um, sort of soft launch and open a little bit sooner. So the, um, although we’re past October 1st, uh, this year, the profile did actually open up in the middle of September, and that’s something that you can probably, you know, count on looking for in the future in mid to late September if, if you, um, have families and are working with families.

The other important benefit, um, of the, the profile is that it can be used both for domestic and international applicants or, or anybody really that, uh, is not able, uh, not allowed, not eligible to fill out the FAFSA. And that allows institutions to determine eligibility and award their resources to those students as well.

So it really is, um, a, a comprehensive, um, opportunity One of the, one of the big questions [00:04:00] is, well, why do schools use the profile? Why is the FAFSA, um, not enough? Um, the FAFSA is, uh, great at determining eligibility for federal funds. Um, and the FAFSA uses, um, that, that data determining the eligibility is used for the congressionally approved me- methodology or the, the, the, the federal methodology.

Um, but over the years, that methodology has, has changed because there are not enough funds and because it really just needs to, um, you know, it doesn’t have to have as much sophistication in the level of, um, in, in the, in the level of its a- analysis. So the profile allows for a more detailed analysis, uh, and importantly, it allows for customized questions for families, and it allows [00:05:00] differentiation of, of families, uh, and their f- financial circumstances.

We know that families’ financial and family circumstances can be very complex, and the profile allows families to, uh, detail in, in more, uh, specificity that so that schools can really make sure that they’re allocating their resources, um, as directly as possible to students and families. And some of the, the national data right now, actually, um, the national data does clearly show that in the, the broad spectrum across all income filers, the calculation using the profile and using an institutional methodology, the family contributions are actually lower than the federal calculations.

So how schools can use that information and how they can allocate their resources is, uh, [00:06:00] another question for a, a- another day and is gonna vary by institution. But it really is important to remember that, and advocating when you’re talking with your students, that the profile’s actually helping to get more money, uh, to them.

So it really is, uh, a benefit to them in most cases, and they’ll find that their, their family contributions will be lower than the, the federal calculation. So the website is a great place to, to start. Um, and there’s a lot that’s going on on the cssprofile.org website. Um, first is how to get to the form.

Uh, and the form that your seniors now are going to be completing is the 27-28, and that’s the same as the 27-28 year for the FAFSA. So it’s always gonna be the year that the, the student is starting. Um, there’s lists of [00:07:00] colleges that require the profile, and I’m gonna show you that. There are tips on this website.

Uh, there are in- there’s information for, uh, families that are n- uh, have separate households. We’re gonna, we’re gonna touch on that. There’s also information in Spanish for, for families that will find that more accessible. There’s links to more information. So there’s… The, the website really is a, a great place to start.

Encourage you to, um, you know, share this, this link and this resource, uh, with, with your students So who, who requires, um, the profile? This page is really important. Um, and what you’ll notice about this page is that it’s not just about the, the school name. Um, so it is a full table and, um, so you should be able to acce- access this.

You know, it should be mobile friendly, but it, it might be, because [00:08:00] of the table features, a little bit more accessible on a desktop. So you can search by name, you can search by state, so if you’re looking for all the colleges in a certain state. And then you’ll notice, uh, some other columns. Uh, do, does the school use the profile for domestic students, for international students?

And then does the school ask for information from two households if the households are, are separated in terms of the biological and adoptive parents? And then the very last column that says IDOC, um, that’s a column for the document imaging service, and we’re gonna talk about that as well at the end. Uh, but what goes along with the profile for some colleges and universities will be to collect other documentation, including tax documentation.

And so this IDOC service, um, some schools use it, some schools don’t. But what you, you [00:09:00] know, can find out from each, pulling up each individual school that the student is interested in, is exactly what they’re gonna need to do. And on the, the far left is the school code. So just like the FAFSA has a school code, uh, profiles have the school code.

And just like the FAFSA, you fill out the profile, you list the schools that you’re going to, um, send it to, and then the information goes to them directly. So the benefit is that you’re filling it out once and sending it multiple places. So this Participating Institutions, uh, page is, is really important.

On the homepage, um, scrolling below what I initially showed you, there’s some additional resources. So there are video resources for families that want help, um, in terms of understanding it, or if you wanna see it live, uh, and, and watch that video, you’re welcome to do that. But, but there are a lot of other good resources, and [00:10:00] some of these resources we’re gonna, we’re gonna cover, uh, in this session So in terms of the application process, the student’s gonna create or has maybe already created an account, uh, much like they would have used for or, or used for the SAT or AP test, so they may already have an account.

And if they do already have an account, it’s good to use that account, especially if the student has gotten a SAT fee waiver, um, it, then it makes the process easier and faster if they use that account on the profile so that that fee waiver is already recognized. Um, there are cases where parents wanna, um, create their, their own account, uh, and they can do that, and, and then when households are separate, there will be separate accounts What is really important about the profile though is the customized nature of including questions [00:11:00] based on the college where the student is applying.

So once a student adds a college that they’re applying to, the, the questions could, um, and, and will be, again, customized and specific for that college. I only r- r- recommend that a student add a college when they know that they’re going to really definitely apply to that college because, as we’ll talk about, um, there could be a fee, and so you only wanna pay the fee if, um, you’re certain you’re applying.

What that also means, um, is that if you add a college later, because of this customized approach, when you add, when a student adds a college later, they do need to come back into the application and make sure that they’re answering, um, any residual or additional questions that may apply to that college, um, that weren’t part of their initial sub- submission.

Um, and the, the profile, if, if you are familiar with the profile [00:12:00] of, uh, several years ago, there are some, some more modern features, um, and the College Board and, and Profile, they update every single year and make enhancements, so it’s always good to, to check what is happening, um, in the, in the present day and knowing the form so that you can help your students as, as best as possible.

Uh, but there are, um, there are ways, one of the enhancements, uh, in the user experience this year is to really make it easier for students who need to stop and start. So you can, um … You know, you always want to save and continue when you’re moving across sections. Um, but there are options, uh, this year to exit out, um, of the, the whole application and then come back to where you left off.

Um, I’ve heard some very creative strategies that f- students and, and [00:13:00] parents have been employing so that they know where they left off, and they know what they, uh, couldn’t answer at the time. Um, but the, uh, for this year, the user experience has changed, and the interface has changed, and, uh, it should be easier to, to get in and out and stop and start and all that.

Um, there are hints and notes in terms of the navigation, um, and so there’s lots of ways to get more information that, that you need. While there are some questions that you can leave blank if it doesn’t apply, anything that’s a dollar value, you always wanna instruct students that if it is a, a dollar value to enter a zero if it doesn’t apply, um, or they don’t, you know, th- have that, that information Uh, so what is a little bit different with the profile m- from the FAFSA is that all parents, um, are going to be [00:14:00] included on the profile.

So at the beginning, students will be asked for all the parents, uh, and if they live in multiple households, um, all the, the parents. Um, if, um, there’s a case where a parent is deceased, that parent, you know, the student should still report that parent and will have an opportunity to, to mark, um, that they are deceased just to, just to make sure that the student is answering all the questions and they’re not asked for ques- additional questions.

Um, and, and I’ll, I’ll explain that when I get to it. Uh, the student will report birthdays, um, and email addresses for parents. This helps to determine ages. Uh, it helps to include contact information when sometimes colleges need to, to reach out. Um, you may have heard that the FAFSA, uh, a guardian, a legal guardian is not reported as a parent.

On the [00:15:00] profile, a legal guardian, uh, can and, and should be reported. Now how that legal guardian’s information is used in the process can vary from school to school. It may not be used at all. Um, some schools may use it. So those questions can be, can be asked. Um, and, um, the b- as I’ve, I’ve been saying, uh, if there are multiple households, uh, across a student’s biological and adoptive parents, information from both of those households, uh, m- may be required as, as well And the student can just list, uh, an email address for that second household and, and then the, uh, information will be sent to them.

So there are situations, uh, where that second household parent, uh, the information is, is not available. And so this [00:16:00] is where, um, having the detail about the parents allows the customization. Um, a- and, and so a st- a student may, you know, not get asked about questions for a parent, um, excuse me, uh, in those, in those cases.

But there are cases, um, where they would be asked, and it’s still, there’s still some challenges there. And this is where I guess I, I really wanna put in a plug for the work that you do in counseling and working with your students directly. Um, because if it’s, if there is a strained, a significantly strained relationship between the student and the parent, um, and you really think that’s gonna be a barrier for the student in their application either now or in the future, um, please, you know, encourage the student to look into the, the waiver [00:17:00] process.

Now, that doesn’t mean always that the waiver is going to be granted, but every year, um, I hear the unfortunate story of a student who just thought they had to get their parent’s information and they went to extreme lengths to get that information and submit it. The parent submitted the application, and then, um, you know, the, it’s very clear that the parent’s not gonna participate, and the student is asking for that information to be waived after the fact.

And, and that’s, um, and that sometimes is, is a challenging situation for everybody. Um, and so just know that there, there is a waiver process at every college. Review that with the student, um, and, and follow that to the best of the ability. And then if ultimately the school says, you know, “No, it can’t be waived,” well, th- then at least they, they know that and can follow, uh, from there.

Um, when things are, [00:18:00] um, a little bit more, um, agreeable and both parents’ households are participating, um, the second household will receive the email request to submit their own profile. It’s secure. It’s the same website. Uh, the process is very, very similar. Um, but, but information is not, you know, cross-contaminated.

There’s no way for the student to see that information. There’s no way for the other parent to see that information. Um, and so, uh, being able to share that confidentiality, uh, with, with parents is, is probably very, very helpful So, um, what information is, is requested, um, certainly the colleges where the student’s applying, so we talked about that and the process of, of adding them as needed.

Um, much like the FAFSA, the parent and student [00:19:00] 2025 income information is what’s going to be reported in this current year. So, excuse me. That, that does lag a little bit. But what is unlike the FAFSA, so here’s another place where the profile is advantageous to the student, is that parents and students are asked about their recent year income, and that would be the 2026 income, so that’s the year that we’re in right now.

And so it’s really important and an opportunity for, for students and families who have s- have realized a change in this year from last year, maybe, uh, there’s been a change in employment. Maybe there’s been a change in income. Maybe there’s been a change in expenses. Uh, they can report that information and schools, you know, can use that sometimes proactively, or maybe they provide some messaging to students about actions and documentation that would [00:20:00] help, uh, to prevent a more favorable financial aid, uh, estimate.

So this is, this is really important. And then there’s an even further question that says, “Are you anticipating a financial change in 2027?” So really that, that, those leading questions, the flagging, uh, will really help y- families as they complete this process. Also unlike the FAFSA, uh, parents will include business information.

So if they own a business, even if it’s a small business, maybe they’re, um, an Uber driver or own a dog walking business, you know, a Schedule C business or a s- a small, uh, partnership or something, they’re still, um, going to be reporting that information, uh, if there’s, um, you know, in- information about the, the income and then the, the net worth of that business.

Household information and number in college. Here’s [00:21:00] another place, uh, that’s different from the FAFSA to the advantage of the student, and I know this question was asked in, in the registration. Um, but the, the FAFSA does ask for the number of students, uh, number of children in college, but it doesn’t do anything in the need analysis, uh, and the determination of eligibility f- in those cases.

Whereas the profile asks that question, asks a little bit more question about where do they go, what year are they, how much do parents pay, and all of that is used by colleges and universities to determine, uh, a, a, a better estimate of the family’s s- strain on their resources, how their s- resources are allocated.

And I, uh, most nearly all colleges that I’m aware of that are using the profile are using and including, uh, siblings in college in their determination of financial aid eligibility. [00:22:00] So encourage, um, your students, in this case they will have to have, with the profile, they’ll have to have their ’25 tax return and W2 forms, uh, on hand and any untaxed income.

There is not, uh, unlike the, the FAFSA, there’s no direct link to download income information from the IRS like there is with the FAFSA. Um, so they’ll need to have that information on hand

Um, the, the better estimate, um, we get into a little bit more detail, uh, with the profile about the kinds of, of income that families have a- as well as assets. The primary home, uh, is included as an asset with the profile application, unlike the FAFSA. And as I just said, the businesses, um, and assets that are held in other [00:23:00] children’s names, and the retirement value, uh, though that is not directly used in the, uh, need analysis.

Now, what is not included on the FAFSA, uh, in addition, are expenses. So while there may be some additional asset pieces that are being asked, they’re be- being balanced out by parent expenses. So when families have significant extenuating medical expenses, that information is included, uh, on the profile, or if parents are paying private school tuition for a younger sibling, or if parents have education loan payments that they’re making.

Those are significant expenses that they do get to include on the profile, and it gives an, a- an opportunity to better assess. And that’s another reason why sometimes the institutional [00:24:00] calculation can actually be lower than the federal calculation, and that is to the advantage of, of the family and eligibility toward more financial aid.

Um, also, um, there are, uh, questions, the date of birth questions for family members is really important, and that is because, uh, that for siblings, there are also allowances in and protections in the assessment of ability to pay. When families have younger children, they g- are given the, um, the allowance and expectation that they’re saving for those children to go to college, and they’re protecting assets for those children based on their age.

So their age is really important because that’s, you know, if the, if sibling is 14 years old, that’s 14 years of savings that are gonna be deducted off [00:25:00] of any assets that families report. That makes a really big, a really big difference. Um, and that, you know, depending on how many children there are, that, that can be $100,000 right there.

Uh, so it, it is important. Uh, the private scholarships, um, and employer benefits are something that students will report, and the reason that’s important is so that when the aid offer is, is granted to a student, um, it is in, it’s in as inclusive as possible. W- what, what nobody wants is to get an aid offer and then have to revise it, so if students know that they’re absolutely gonna be eligible for a benefit from an employer or another scholarship, they can include that, and that information should be included in the aid offer when they get it Another thing that the profile offers that the FAFSA doesn’t is an ability to explain circumstances.

So there’s lots of questions in the profile that you can mark and then add [00:26:00] a text narrative. So there’s no text narrative boxes on the FAFSA. On the profile, you can, you can fill that a- in and you can write, you know, what is going on in your family, and that really helps colleges to understand things.

They may reach out. They may ask for some additional information. This is all for the benefit of providing the best financial aid offer as possible. There are some times where colleges have asked sort of their own question. I alluded to that at the beginning. When a college is added, a student needs to make sure that they go back and answer any questions.

Those used to be, uh, much more frequent than they are, so there’s been significant effort to really minimize those additional questions as much as possible. So, uh, I think that you’ll, you’ll find that experience and students and families will find that experience better. So here’s the part where we get to, you know, what does it cost.

Um, just [00:27:00] like the SAT, there is an initial, uh, fee. So the initial fee for one school is $25, and then there’s a slightly lower $16 fee for each additional school report, which is why only … I- I- it’s recommended to only add schools as you know that you’re definitely, uh, a student is definitely applying to that, that school.

Um, there are several payment options. Uh, the non-custodial parent is the same, um, $25. Now, here’s the good part. There are, uh, fee waivers. So students can qualify if they meet one of the criteria for a fee waiver, if their income is under 100,000, um, if the, the student is an orphan or a ward of the court, if they’ve already received an SAT fa- fee waiver.

So these fee waivers are, are available across the board regardless of the type of application, regardle- uh, regardless of whether it’s a [00:28:00] first time, um, application or a renewal application. And, um, so these fee waivers are helpful. The other thing that’s important is the fee waiver is, uh, registered as soon as the, uh, uh, the, the student is determined to, um, qualify for it.

So basically, as a student is completing it, they don’t have to wait to the end to find out, am I gonna have to pay? Am I not? They will be told as they go through the application as soon as they, they qualify. So if they log in with their SA- their College Board SAT, um, account and they, that fee waiver is recognized, they’ll be told at the beginning they, they have a fee waiver.

Uh, students do need to live, um, and have parents that live in the US. Uh, the fee waivers are, are not at this time available for international students. Um, and, uh, they are for [00:29:00] an unlimited number of schools. So it used to be that the fee waivers were, were available for a certain number. That has, uh, been expanded, so that’s wonderful.

Um, non-custodial parents can also qualify for the fee waiver, and what this means is, is that, you know, 40% of students are qualifying for these fee waivers, which is, which is a lot, and, um, 85% of first-generation students. So, um, you know, th- this is, is worth it. It’s, it’s not, uh, it’s not nothing in terms of the impact.

There also can be fee payment codes. So those are codes that are purchased by another entity. It could be a community-based organization. It could be a college or university that distributes them. Um, and there’s one, one code, and it’s for one submission. So, um, certainly students can ask for those. Uh, if they’re being granted from a college or a university, they’re only gonna be able to be [00:30:00] used for that college or university.

Um, and you know, I guess there’s n- there’s not a time limit, so, so that’s all good to know Uh, students can review, uh, their application as they’re, they’re submitting it. Um, and there are prompts. Another feature of completing it online is that there’s prompts that if something looks like it’s inconsistent or could be an error, then they’re alerted to that, um, and, and then can make those changes.

Uh, they are, there is a certification box that all the information is accurate, so I think it’s important to highlight, uh, that, that students and families, uh, take that seriously. Um, and then at the, at the end, uh, if they do need to pay, then that’s where they would pay, or that’s where they would s- they would put in the, um, the fee, the fee payment code.

But, um, it will show [00:31:00] there if a fee waiver is, uh, being, you know, credited. There’s even more, you know, a, a focus on increasing access for low-income students, um, and that’s a- another, um, question that often comes up about, you know, why low-income students need to, to fill out the, the profile. But right now, um, all, as of this year, so the, the ’27, ’28 profile, all students that, um, meet the low-income criteria will be presented with a shorter application experience.

So they’re not gonna really know that, but if, um, maybe a family comes and maybe has filled it out in the past with an older child and they say to you, “It feels like there were less questions,” you know, “Did I do everything right?” Um, th- th- then they did. Uh, it is designed to be, [00:32:00] um, you know, not, not obvious, but the, the shorter, easier application experience, uh, really should increase their success and the completion rate and being able to do it in one submission rather than having to go back.

Um, and they would just automatically qualify. In the past few years, there’s been some students that would qualify, but, um, that would get that shorter application, but depending on where the schools that they applied to, they might still get the longer application. And so that is all, um, changed for this year, and improved.

And the same now for this year, uh, in ’27, ’28. That second household will also get the streamlined experience if, if they qualify and are eligible for it The dashboard is important. This is where students can see where they are in the process. Uh, they can stop and they can start, um, and, and do all that, and it has the [00:33:00] application status.

Um, there’s the option to print. There’s, uh, the payment receipt there. There’s links to the, the IDOC, lots, lots of different, um, options. The, if they need to add information for that second household, all, all of that is, is right there Another, um, feature of the profile is that students can make corrections.

The design of this correction is really for, for things that, uh, are the most, um, y- you know, egregious or present the biggest problem. So there’s really, um, two categories. One, if the student ins- accidentally completed the application as an independent student but is really a dependent student. The reason this happens typically is the parent is actually starting the application and not paying attention to the names, um, of the, you know, the question of, of who’s being asked the question.

So [00:34:00] if, uh, a parent says that they’re married, but they’re really answering the, the student question, what is the marital status for the student, then that, that can create, um, a, a problem. So sometimes that happens, and so you can go back and correct to make sure that the questions are, are… all the questions are answered, and that student…

it, it’s answered as a dependent student. Also, um, if you didn’t, if a student didn’t include a business or a farm, that’s another omission that, that happens more frequently, then they can correct that. And then the third category is, is really a catch-all, which is that a mistake was made or something changed, and they just wanna provide additional, uh, explanation.

And so then they definitely want to add the written part of that so that it’s clear about what they’re changing and, and why they’re changing it. Um, and it’s really just the, the narrative. They’re not answering any specific, going back to any specific questions. [00:35:00] Uh, but if they answer something incorrectly, just put the data in there, and then the colleges will review that.

It does have to… That has to be done after the original application is, is processed. Um, and there’s, uh, there’s no charge to, to submit a question. So I talked about IDOC, the document imaging institutional documentation service is the official name, um, that is used by the college board and some, you know, colleges and universities.

Again, this is helpful because the student can upload the information that’s being requested in the portal, and it goes to all the colleges that need it. They don’t have to go to each individual college portal and upload those tax documents. You know, I, I know that students are dealing with a lot of portals.

Every college and university, you know, uh, has a financial aid portal. So hopefully, this makes it… it, it is designed and, and intended to make it easier. And then the student [00:36:00] can go to the portal Or the college and university confirm that the information has been transferred and received, and generally that takes a few days.

I usually say it takes about two to three days, but during the height of the application season and submission, it could take more like three to five days. So it’s, it’s good to advise students that if they’re getting an email from a college or university saying that they’re missing something and, and they say to come to you and say, “I’m confused, I just uploaded it,” tell them to, to breathe, um, and wait just a couple days, go back to that portal and check it, and if it feels like it’s been, you know, certainly longer than a week, then they probably should send an email and just say, “I did submit this to IDOC, you know, why haven’t you gotten it yet?”

Um, but there are several formats that can be used in terms of, uh, that upload, the JPEG, the, the TIFF, the PDF. Um, and at any time a tax return is being [00:37:00] uploaded, they do need to upload all the pages and schedules because, you know, it doesn’t help when we have to go back and ask for an additional page, and sometimes students don’t see that information in a timely way, or the parents don’t, uh, because they can’t access the portal.

So, uh, having everything upfront is, is really helpful. But always another recommendation is that prior to what a student expects will be the decision release timeframe, they should always be checking the school’s financial aid portal to make sure that all that information, um, all the information that’s being requested is actually received.

So, um, this is what the, um, you know, the site looks like. There, there’s some additional information and, um, introduction, and there’s some web instructions there. Uh, there’s also other support, uh, resources and a phone number for the profile [00:38:00] and an email address if, you know, families need to, to contact the, the CSS Profile support team to resolve any, any issues.

Um, this is a good slide, um, if you wanna save information to, to help your families or pass it along to your families. If you wanna take a, a screenshot, um, families for the FAFSA do need to be getting their FSA ID. That is specifically for the FAFSA. And then they definitely, you know, want to be looking at, at deadlines and applications, so there’s some good tools on MEFA’s website, along with signing up for the MEFA family emails, which I, I do highly recommend because, uh, they’re, they’re brief, they’re not spam, they have great targeted information.

Um, and now’s the time to start on both the FAFSA and the profile for your families. So, uh, there’s also great resources [00:39:00] for you as school counselors, so feel free to, to, to grab this link, um, and see all the upcoming webinars and the tips and important deadlines and just as, as much information as we can share And there’s always ways to reach out on social media depending on what you like, uh, in your, your news stream.

Um, so feel free to, you know, sign up for something, like something, um, follow something, one of these so that, uh, you can stay informed. But we, uh, we really appreciate you joining this morning, and I look forward to answering some of your questions, things maybe that I, uh, I neglected to cover. But it’s always great to, to start out the day with you.

How are we doing on questions, Shaun?

Shawn Morrissey: We’re doing good, Gail. Um, I just wanna mention again that this webinar will [00:40:00] be posted on our website, and we’ll also send a link, uh, to the recording and a copy of the slides to everyone who registered. Um And I also, there, there have been a couple of questions about the value of assets and how those are used in the formula.

Um, like I think the, just the understanding that the entire value of the home isn’t going to be expected to be used towards college expenses. Could you talk a little bit about that?

Gail Holt: Absolutely. I, I am hearing, uh, that that’s one of the, the number one questions for colleges and universities. Uh, how do you, how do you treat home equity?

Um, so there’s some, some good education out there. So, um, as of this current year, ’26, ’27, uh, standard institutional methodology [00:41:00] started to, to look at home value, um, at a reduced rate. So 80% of the fair market value is the starting point, and then the home debt is deducted from that. And that’s how many colleges are looking at home equity.

I cannot say that universally because while institutional methodology there is a standard approach to it, colleges and universities are allowed, uh, to do whatever they, um, feel is appropriate based on their resources. So colleges that have more… Basically the rule of thumb is that colleges that have a bigger endowment and more resources are likely to use the more generous approach.

So they are likely to use that, that 80% approach less the debt, and they may even, um, compare [00:42:00] that to a family’s income. And if there’s a very large discrepancy between the level of income and the home equity, they may, they may make further, uh, adjustments. Um, I hope that sort of answers the question.

Shawn Morrissey: Thank you, Gail And, um Likely the, along the same lines for business assets and the business value. How, is, is that looked at similarly?

Gail Holt: Businesses are complicated. Um, and businesses, the equity in a business is adjusted, so that is not, um, face value necessarily. And, and when I say adjusted, I mean adjusted downward.

The, the reason for that is, uh, business is far less, um, first of all, it’s not [00:43:00] necessarily liquid. A home is not liquid either. But, um, a business is, is far less able to leverage that business in terms of resources to contribute toward educational costs. Um, and, and there’s never the assumption. Assets are never considered with the presumption that assets are going to be leveraged to directly pay for college.

That’s not what it’s about. It is about assessing a family’s general financial health, and it’s the vertical nature of families without those assets, without a home, without a business, have less resources over the long haul and have, uh, a greater eligibility toward and for financial aid. And families that do have significant business assets [00:44:00] and equity or a significant home equity, they have additional options and resources over the long haul and have, they’re, they’re better positioned to contribute to educational costs.

Now, again, there are always exceptions to those rules, and that’s why it’s so important for families to engage with the schools that they’re most interested in and have conversations on that personal level. And, uh, you know, whether you talk about it as an appeal or whether you talk about it as a special circumstance, the, the conversation there is important.

It is not about, um, trying… You know, the reason I don’t like the word negotiate is because this is not about how much money can the college make off the student. It’s about sharing the facts of a family’s financial situation. Colleges are here to make sure that they can [00:45:00] allocate their resources appropriately.

Obviously, they still need to provide an educational, um, experience. They still need to have lights in their buildings and air conditioning in the, in the residence halls. So they still have substantial expenses. But we’re, we’re, we’re, they’re not an institution that’s out to make money on families. It’s, the point is to understand a family- and understand and, and as- evaluate their ability to contribute to educational costs and provide reasonable and equitable financial aid based on that college and university’s mission I went a little bit on, on my soapbox there.

Thank you for indulging me. Sure.

Shawn Morrissey: That’s okay. That was a great explanation, Gail. Um, we don’t have any other questions, so thank you for joining us, and, um, we will be sending out a copy of these slides and the recording to everyone who registered. Thank you, Gail. [00:46:00]

Gail Holt: It was very informative. Thank you very much for joining today.