Do the formulas take into account a high level of consumer debt?
The FAFSA does not have a question on debt but a separate document can be written up and sent to the financial aid directors of the colleges of choice. Do not send the separate document to the Department of Education with your FAFSA. The CSS Profile has a block on its application where one can note special circumstances such as high consumer debt. The absolute way to address this debt is to consider using home equity for college and debt. This action will now put the debt into view and in some cases actually lower your family contribution. In lieu of home equity for this kind of debt, you may want to consider lowering assets and paying off consumer credit. This also makes the credit visible and yet lowers the asset side of the formula.
