Business is always risky and the initial years are challenging. The business takes around 1 to 2 years to flourish. If, you have had plans for starting up a business, after the education of your child – you don’t have to wait. This is the right time to start a business.
As stated before –the business takes time. Hence, your start-up costs will reduce your assets, and low sales will reduce your income. Therefore, it will increase the amount that will be granted in the form of financial aid.
In short-starting up a business adds to your liabilities and increases your chances of getting a financial aid. However, starting a business is always risky, and you need to do your research and decide accordingly.
How to estimate your assets and liabilities in the financial aid form?
Entrepreneurs try to add value to their assets by including intangibles like goodwill. Though, they are important – they don’t carry any significance to the need analysis formula.
You will be asked to list the value of receivables, cash, inventory, investments and most importantly your fixed assets like land, buildings etc.
What if my net worth is negative?
If you have negative worth-you are required to list “0” on the FAFSA.
But in other cases, you will have to list your debts. You need to look for colleges that will not subtract your negative worth from your assets.