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Here's a clear breakdown of six major asset categories, how they’re counted in 2026, and how they could impact your aid eligibility.
Everything you need to know before filing.
When you submit the 2026–2027 FAFSA, your income isn’t the only thing that matters — your assets (and your parents’ assets) play a huge role in how your Student Aid Index (SAI) is calculated. And with the FAFSA rules changing over the last couple of years, many families aren’t sure what truly counts and what doesn’t.
The good news? Once you understand how each asset type is treated, you can position yourself to get the maximum amount of financial aid you qualify for. Below is a clear breakdown of six major asset categories, how they’re counted in 2026, and how they could impact your aid eligibility.
Parent-owned savings accounts — like checking, savings, or CDs — must be reported, but the impact is often much smaller than people assume.
If your parents have $10,000 in savings, FAFSA only counts roughly $564 of that toward your SAI — which rarely moves the needle.
✨ Student takeaway: Parent savings aren’t a FAFSA killer. The impact is minimal compared to income.
Assets held in your name are treated very differently — and more harshly.
Example: If you have $5,000 saved, FAFSA may count around $1,000 of it. That can reduce financial aid eligibility.
If you’ve been saving aggressively in your own account, it may work against your aid award.
✨ Student takeaway: Whenever possible, keep most savings in a parent-owned account instead of your own.
529 plans are one of the most misunderstood asset types — and ownership makes all the difference.
✔ Counted as parent assets
✔ Assessed at the lower parent rate
✔ The most FAFSA-friendly version
✘ Counted as student assets
✘ Assessed much more heavily
→ Less ideal for financial aid
✨ Not reported at all on the FAFSA
✨ Distributions are no longer counted as student income
→ A major advantage after the FAFSA simplification changes
For many families, simply shifting ownership (or planning distributions strategically) can significantly boost aid eligibility.
✨ Student takeaway: Parent-owned or grandparent-owned 529s are best for maximizing aid.
Retirement savings are completely excluded from FAFSA calculations.
Withdrawals may appear as income on taxes — and income affects aid far more than assets.
✨ Student takeaway: Retirement funds are safe. Avoid withdrawals during FAFSA years if possible.
If it’s not retirement-based, it likely needs to be reported.
These assets go into the parent asset category, so they’re assessed lightly — but balances can still add up.
✨ Student takeaway: Investment real estate and brokerage accounts matter, but they’re still treated more generously when parent-owned.
This is one of the biggest updates affecting FAFSA for 2026–2027.
✔ Family-owned small businesses with fewer than 100 full-time (or FTE) employees
✔ Family farms — as long as the family lives on the farm
✔ Family-owned commercial fishing businesses
If your parents run a small business or live on a farm, they no longer have to report the business/farm net worth — which previously inflated SAI for thousands of families.
This rule change can unlock thousands of dollars more in potential aid.
✨ Student takeaway: Small business and farm families will likely see better aid packages beginning in 2026.
Your FAFSA doesn’t just look at income — it considers the bigger financial picture. But the 2026 updates mean more protection for families, especially those with small businesses or farms.
💡 Pro Tip: To make the most of your college budget all year, we upload new scholarships every week on our free student portal. Check it out to fund your education, cover essentials, and keep more cash in your pocket for the things that really matter.
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