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[quote=Anonymous][quote=Anonymous][quote=Anonymous]

The reason they are, btw, is that having no assets is taken as a proxy for having been [i]unable, rather than unwilling[/i] to save due to personal circumstances.[/quote]

Question: How can the college tell the [i]unable[/i]s from the [i]unwilling[/i]s?[/quote]

The colleges can only go by what they ask. If using FAFSA, then that is primarily income and assets (non-retirement, non-primary home). If you make $150K, live in Kansas, have no assets because you spend all of your discretionary money on European vacations, then you will be judged on your $150K income. If you make $150K, live in NYC, have no assets because of the high cost of living, you will be judged on your $150K income. The first may be unwilling to save and the second unable, but it doesn't matter.

Assets are taken into consideration unless it is in a retirement account or the house you live. However, income counts much more in the financial aid equation than assets do. So your income has the greatest effect on how much your expected family contribution (EFC) is. Note, that even if you have a low EFC, does not necessarily mean you will get a lot of aid or any at all. It may mean a $4000 Pell Grant, if it is sufficiently low. If not, it may mean some extra loans or work study and that's it.

CSS Profile is a little different. The 200 or so colleges (often the more elite ones) that use it look at a much broader picture of your financial situation. They may take into account the equity in your primary home and your retirement assets, so if you have saved a lot in retirement but make a low income, a CSS school may not offer you as much money as a school that uses FAFSA. Again, they both may offer you nothing.

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