Question 89 on the FAFSA asks about your parents' net worth of current investments, including balances in savings, brokerage, retirement, and investment properties. This figure helps schools calculate your expected family contribution and determine aid eligibility.
Because investments can change in value and reporting rules differ, families often need clarity on what counts, how to value accounts, and how this number interacts with other financial details on the form.
| Account Type | Parent Owned | Reported on FAFSA | Typical Reporting Method |
|---|---|---|---|
| Bank Savings and Checking | Yes | Yes | Current balance as of application date |
| Brokerage and Investment Accounts | Yes | Yes | Current market value minus liabilities |
| Retirement Accounts (401k, IRA) | Yes | Yes | Current value reported directly |
| Small Business Equity | Yes | Yes | Net value after business debts and obligations |
| Primary Home Equity | Yes | Assessment varies by school | Some schools include, others exclude via shelter rules |
How Parents Report Investment Values Accurately
Use Current Market Value
Report the current market value of taxable investment accounts, not the amount originally contributed or the historical cost basis. For retirement plans, use the reported value from the most recent statement.
Consolidate Multiple Accounts
If your parents hold investments across multiple institutions, add the balances of all accounts that are considered parent assets on the FAFSA. Exclude minor accounts reported under the student or if they are sheltered plans excluded by specific school policy.
Understanding Net Worth in the Context of FAFSA
Net Worth as Assets Minus Liabilities
For Question 89, net worth of current investments is calculated as the total value of liquid and nonliquid investment assets minus any secured obligations tied directly to those assets. The result is reported as a single figure when required by the school or system.
Interaction with Other Financial Questions
Question 89 complements questions about parent income, taxed and untaxed benefits, and business/farm value. Schools use these combined inputs in their financial aid formulas to estimate what your family can reasonably contribute.
Impact on Financial Aid and Expected Family Contribution
How Schools Use the Net Worth Figure
Most federal aid formulas cap the portion of parent investments that can be assessed, but the reported net worth influences the calculation of the expected family contribution. Larger investment balances generally increase the EFC, though the effect depends on age, family size, and other protections.
Strategic Timing and Asset Shifting
Because valuation dates and reporting thresholds matter, families may consider shifting assets within protected retirement accounts or timing account sales to align with aid year rules. Consult your school financial aid office and a tax advisor before making structural changes.
Key Takeaways for Parents Navigating Question 89
- Report current market values of taxable investment and business assets owned by parents.
- Exclude retirement accounts from the net worth line when following school-specific guidance, but disclose them elsewhere on the FAFSA.
- Verify whether each school counts home equity in its net worth assessment, as policies vary widely.
- Complete the FAFSA early to capture year-end balances and to allow time for corrections or professional advice.
- Keep records of account statements and valuation sources to support accurate reporting and future reviews.
FAQ
Reader questions
Should I report the value of a 529 plan under parent net worth of current investments?
No, 529 plans are reported as parental assets in a separate section, not included in the net worth of current investments on Question 89.
Do retirement accounts such as a 401k or IRA count in this net worth calculation?
Yes, the current reported value of retirement accounts is included, even though the portion sheltered for retirement remains an asset on the form.
What if my parents have a small business with ownership stakes on Question 89?
Report the net value of the business equity after subtracting related debts and obligations directly tied to the business, as part of your parents' net worth of current investments.
How do schools treat the value of a primary home for this question?
Some schools include home equity in their net worth assessment, while others apply shelter rules that exclude a portion; check the financial aid policy of each school to which you are applying.