financial aid at our Big3 is a farce

[Anonymous]

Anonymous wrote:

Anonymous wrote:As we cannot verify the story I'm not inclined to think it's true. DCUM is rife with people trying to stir up controversy.

As others have aid your tax records are submitted when you apply for aid, and the admissions office people aren't clueless either when it comes to things like club memberships or second homes.

+1 there are always lots of strange posts around the times decisions are due

Exactly. I call troll.

[Anonymous]

How can you prove it? Name the school.

[Anonymous]

Anonymous wrote:OP here. I know them really well. They've actually told me their income in the recent past. I know their jobs.
Also, their salaries are both posted publicly.
I know what real estate they own because i've been to both houses countless times.
Unless they have a secret gambling program I know nothing about, their net worth is quite a few million as well.
I guess what this proves is:
-schools definitely use aid as scholarship money. I had read about this on DCUM but never saw it play out in real life. I'm still shocked.
-if you're at all on the fringe of affording the schools, apply for aid. Really, anyone under $500k, apply.
-if you're on the fringe, don't give an extra cent. You're probably sponsoring someone wealthier than you are.

Are the houses in their names?

[Anonymous]

OP, you never know what goes on behind closed doors. You'd be shocked by how much debt people are in who lead seemingly lavish lifestyles.
Also, you don't know if the school is actually giving them FA. This is just what your "friend" says.
There are also some companies and orgs (including some WB/IMF people under specific arrangements) that subsidize private school tuition.

[Anonymous]

Anonymous wrote:I know of a similar story. People moved money around, spent their cash savings on a Mercedes just before the FA application was due. Got 50%. Do not need it.

You can afford 50% of SSFS at $160k

[Anonymous]

Op here.
I have to run an errand and will be off the internet for some
time.
Yes, their income is real, yes the award is real. I saw the letter. No, They don't get the money from the IMF or whatnot. this was from the school. No, I don't know the dark side of their finances. For all I know they have a gambling addiction and a negative negative net worth. But this is a family who has had two very well paying jobs for a long time and a pretty simple life. There doesn't seem to be much hidden . Also, they applied to multiple schools--including Catholic and did not get aid at the other schools. The Big3 school gave them 50% while the catholic high schools did not. they are really using it as a scholarship which frustrates me as I was not aware that was the purpose of aid.

I have no way of proving this on DCUM because clearly I don't have access to their tax returns or even award statement. So some of you will assume I'm lying because it makes you feel better to think this isn't true. But I can say I'm not making any of it up. it made me feel better to post this because there's not much I can say in real life. its not really a conversation for the next parent social. I am long standing friends with a board member and I may say something to him/her when we next meet and she/he is always interested in my thoughts on the school and perspective as a parent.

Otherwise, I guess that's it. I will stop giving because we really don't have the money and can barely pay the tuition. But otherwise this won't change much.

[Anonymous]

It probably comes down to how much they want your child.

[Anonymous]

We make less than them, applied for aid and got nothing. If you know this to be true OP anonymously report them.

[Anonymous]

Or even better, report them to your friend directly.

[Anonymous]

Possible but there is need based FA and Merit Awards. Schools can do what they want if they want a family. We just follow the rule - If we can't pay for it on our income, we can't afford it.

[Anonymous]

This is so fake . . . .

[Anonymous]

Anonymous wrote:Op here.
I have to run an errand and will be off the internet for some
time.
Yes, their income is real, yes the award is real. I saw the letter. No, They don't get the money from the IMF or whatnot. this was from the school. No, I don't know the dark side of their finances. For all I know they have a gambling addiction and a negative negative net worth. But this is a family who has had two very well paying jobs for a long time and a pretty simple life. There doesn't seem to be much hidden . Also, they applied to multiple schools--including Catholic and did not get aid at the other schools. The Big3 school gave them 50% while the catholic high schools did not. they are really using it as a scholarship which frustrates me as I was not aware that was the purpose of aid.

I have no way of proving this on DCUM because clearly I don't have access to their tax returns or even award statement. So some of you will assume I'm lying because it makes you feel better to think this isn't true. But I can say I'm not making any of it up. it made me feel better to post this because there's not much I can say in real life. its not really a conversation for the next parent social. I am long standing friends with a board member and I may say something to him/her when we next meet and she/he is always interested in my thoughts on the school and perspective as a parent.

Otherwise, I guess that's it. I will stop giving because we really don't have the money and can barely pay the tuition. But otherwise this won't change much.

Sounds like the school does both need based awards and merit based awards and your “friend” got a merit based award.

[Anonymous]

Anonymous wrote:I know of a similar story. People moved money around, spent their cash savings on a Mercedes just before the FA application was due. Got 50%. Do not need it.

Really? We had to list all vehicles, including boats.

I think some could hide their money in trips and get cash down that way.

[Anonymous]

Anonymous wrote:I have a friend/family member (being vague on this) whose kid was admitted to a Big3 for high school. HHI $450K-500K+, two homes worth 2 million+ (one rented out), country club membership, one tuition. I am 100% sure the estimate of their income is correct. They asked for and received 50% aid. I'm honestly shocked and surprised. We pinch our pennies for this school and even donate beyond. We make less money than they do. I never even thought
of asking for aid. This kid is not a minority, very smart but no special hooks. I'm just sort of floored. I feel like broadcasting this to the school. It feels like a gut punch.
This is not a troll post or made-up post.

I can believe it. Many, many millionaires take advantage of the tax laws in the US that most people don't know about. That is how Donald Trump has gone bankrupt four times and still has the money and assets he has. It's how the current governor of Virginia and his partners paid taxes on salaries of less than $200,000 while earning millions from the company they founded. It's called a "Family Charitable Trust" or "Foundation" and anybody with money can avoid paying their fair share of income taxes by having this type fund. The Trust/Foundation invests in high yield investments to increase its worth. The Trust/Foundation is NOT TAXED.

Here' how it works. Rather than receiving a paycheck from their employer, their full salary without withholding and any stock or bond distribution they receive is sent directly to the Trust. The Trust then purchases a million dollar home, pays the property taxes, upkeep, etc., purchases a vehicle or two and pays all auto expenses, provides vacation homes, etc. The Trust holds all the assets. The income earner serves as Chairmen of the Board of the Trust, his/her spouse and members of their family serve as members of the Board overseeing the trust and are compensated accordingly. The children who serve on the Board have the balance of their tuition paid as part of their salary as well as other school expenses they incur. The distribution to the Board members is usually taxable.

The Trust must annually distribute income. That's why you see professional athletes and others distributing backpacks and school supplies in August and toys to needy children at Christmas. The money comes from their Trusts. If you watch Public Television, you will see programs funded by Private and Family Trusts and Foundations.

So that is how some millionaire children are able to receive financial aid from schools. Financial aid is based on your annual income, assets, etc. Since all your assets are not in your name, you own nothing and owe very little and that is how financial aid is calculated.

[Anonymous]

I'm not in DC but another city and listened to an admissions officer at a well-regarded private school talk about financial aid. She talked of a family that had several children at the school and found money was getting tight and applied for financial aid. She said the school was eager to work with them, but they did say the first thing they told the family to do was to resign from their country club, then they could talk.

Schools have a way of knowing these things.