Assets are the part of the FAFSA families most often misunderstand. Here is exactly what counts toward your Student Aid Index for 2026-27 and what does not.
The 2026-27 asset conversion rates
| Whose assets | Conversion rate |
|---|---|
| Parents (dependent student) | 12% |
| Dependent student | 20% |
| Independent, no dependents | 20% |
| Independent with dependents | 7% |
A portion of your reportable net worth - the conversion rate - is added to the contribution. So $20,000 in a parent’s brokerage account adds about $2,400 (12%) to the index, while the same $20,000 in a dependent student’s name adds $4,000 (20%).
What counts
- Cash, checking and savings balances
- Investments: stocks, bonds, mutual funds, investment real estate
- 529 plans (parent-owned for a dependent student)
- Net worth of businesses and farms (after a graduated adjustment)
What’s excluded
- Your family’s primary home
- Retirement accounts (401(k), IRA, pension)
- Cash value of life insurance
- Personal possessions like cars
The asset protection allowance is gone
For 2026-27 the asset protection allowance is $0 at every parent age, so there is no age-based shelter anymore. The big exclusions (home, retirement) remain, but reportable assets count from the first dollar. Full detail in how assets are treated.
See the effect on your own number in the SAI calculator.
General information, not financial-aid advice. Verify at studentaid.gov. Source: 2026-27 SAI and Pell Grant Eligibility Guide.