The government uses a need analysis to calculate a student's financial need. This involves calculating the net worth of the applicant's assets. For each asset listed in a student's application, the applicant should subtract the debt owed on that asset from its market value in order to get the asset's net value.
Different types of investments are labeled as assets including trust funds, stocks, bonds, mutual funds and certificates of deposits (CDs). College savings accounts such as 529 plans and Coverdell accounts must also be listed.
Any real property that the applicant owns, including land, must be listed as an asset unless it is his family's main home.
Any money that an applicant has in a checking or savings account should be listed on the FAFSA.
The net value of any business that is owned by the family or applicant must be listed as an asset unless it has less than 100 full-time employees. An investment farm, on which the family or applicant does not work, is also considered an asset.
Only dependent students are required to list their parents' assets. This rule does not apply to applicants who are 24 years old or older, graduate students, orphans, married, parents, military veterans or are independent due to special circumstances.