Does my HSA count as an asset on FAFSA?

When it comes to filling out the Free Application for Federal Student Aid (FAFSA), many students and families may wonder if their Health Savings Account (HSA) funds count as assets. The short answer is yes, your HSA is considered an asset on the FAFSA form, but there are nuances to understand.

Here are some key points to consider:

• HSAs are included in the assets section of the FAFSA form.
• Unlike some other financial accounts, the value of your HSA is factored into the Expected Family Contribution (EFC) calculation.
• Having a higher asset balance, including funds in an HSA, may potentially reduce your eligibility for need-based financial aid.
• It's important to note that only the balance of your HSA that is not used for qualified medical expenses is considered an asset.
• If you withdraw money from your HSA for medical expenses, those withdrawals are not counted as income on the FAFSA.

While your HSA is counted as an asset, it's crucial to understand the impact it may have on your financial aid eligibility. Be sure to consult with a financial aid advisor or expert to navigate this aspect effectively.

Yes, your Health Savings Account (HSA) is counted as an asset on the FAFSA, which can affect how much financial aid you may qualify for.