Completing the FAFSA: What Parents Need to Know About Assets

Assets play a significant role in determining a student’s eligibility for need-based financial aid through the Free Application for Federal Student Aid (FAFSA). The FAFSA uses a formula called the Federal Methodology to calculate a student’s Student Aid Index (SAI). This figure determines how much financial aid a student is eligible for. Assets, along with income, are key components in this calculation.