Affording College with HHI $100-$200k

[Anonymous]

Anonymous wrote:

Anonymous wrote:Chances for aid decrease to zero if you own any rental properties. Lower chances if you own your own business too, or at least it complicates things. Add in money saved in 529 or other non retirement savings at 6% available, so that's not too bad. Schools consider 50% of student assets as available, so careful what grandparents gift them. Different schools have different calculations for primary home equity. Some have a cap. Some schools regard contribution to retirement accounts as a available, but depending on age of parents. Best to run the NPCs. The most prestigious schools will give the most need based financial aid at this income, part of why they get so many applications.

Is this 6% a year or over four years? If it's a year, then with two kids, you'd end up spending 48% of your non-retirement assets - that's something to think about!

Per year, but over 8 years that's more like 40% spent. And even if it's a 529 under the parent's name, that's the extent to which it impacts an aid offer. Far better to have the savings for sure.

[Anonymous]

$200k+ forget about it.

$100k you should get a lot--some places it's free right up until $100k.

$150k, still in the running.

$200k-- you are sh*t out of luck.

[Anonymous]

Anonymous wrote:That’s a big range OP 100k-150k will qualify for some aid. Above that the aid decreases and at 200k you’re at the start of the donut hole. Your strategy will depend also on how much money you already have saved, how many kids you have and how old they are. Also if they are stellar with top scores and grades. I would figure out how much money you can afford for college and then create a strategy from there

These rules are changing. FAFSA is no longer taking number of children into account when factoring eligibility for financial aid.

https://www.cnbc.com/amp/2023/08/28/fafsa-heres-whats-new-about-the-college-financial-aid-application.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:A lot depends on assets. Our income is low but assets are high and we got nothing.

In every marketing line that said, “95% of families making under 150k pay 0 in tuition”, we’d say .. we’re the 5%!

This. And in markets like DC where housing value has risen rapidly, families who have owned their home for a while will be seen as having a lot of home equity they are expected to tap for college. At higher ranked schools we got some aid but still the cost was generally $60k+. Not what we considered in budget. What did fit for us (<$40k) was in-state publics and privates below the USNWR T50 that were generous with merit aid.

Tap into home equity for college, wow, how about needing that for retirement and health costs!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot depends on assets. Our income is low but assets are high and we got nothing.

In every marketing line that said, “95% of families making under 150k pay 0 in tuition”, we’d say .. we’re the 5%!

This. And in markets like DC where housing value has risen rapidly, families who have owned their home for a while will be seen as having a lot of home equity they are expected to tap for college. At higher ranked schools we got some aid but still the cost was generally $60k+. Not what we considered in budget. What did fit for us (<$40k) was in-state publics and privates below the USNWR T50 that were generous with merit aid.

Tap into home equity for college, wow, how about needing that for retirement and health costs!

Right!?! Isn’t that just a parental loan that also risks jeopardizing your home? We bought our modest 1 bathroom but inner suburb home in 2004 for about $450K. They want us to take out a loan against our primary residence? How is that any different than just requiring parental loans regardless of house? Or are we expected to move despite younger siblings?

[Anonymous]

At 150-200K if you save all along you can comfortably afford your state college with the right housing and other choices. At 100K its harder.

[Anonymous]

Anonymous wrote:6% per year.

Our hope was that our assets would rise in step with that and we’d be flat after 8 years and so far that’s been about true. Historically, our assets would have doubled in 8 years so I understand the cost. But we did not drawn down 48% of our assets

You should be saving for 18 years so you can comfortably pay out of college savings and income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot depends on assets. Our income is low but assets are high and we got nothing.

In every marketing line that said, “95% of families making under 150k pay 0 in tuition”, we’d say .. we’re the 5%!

This. And in markets like DC where housing value has risen rapidly, families who have owned their home for a while will be seen as having a lot of home equity they are expected to tap for college. At higher ranked schools we got some aid but still the cost was generally $60k+. Not what we considered in budget. What did fit for us (<$40k) was in-state publics and privates below the USNWR T50 that were generous with merit aid.

Tap into home equity for college, wow, how about needing that for retirement and health costs!

Right!?! Isn’t that just a parental loan that also risks jeopardizing your home? We bought our modest 1 bathroom but inner suburb home in 2004 for about $450K. They want us to take out a loan against our primary residence? How is that any different than just requiring parental loans regardless of house? Or are we expected to move despite younger siblings?

You save for 18 years, you limit things like vacations and either pay off the house or save the extra... lots of options. We got our house for a little less and still managed to save for a state college. We just adjust our priorities. If the house is worth a million now, you really think you should get financial aid when a lot of it is lifestyle choices.

[Anonymous]

Anonymous wrote:$200k+ forget about it.

$100k you should get a lot--some places it's free right up until $100k.

$150k, still in the running.

$200k-- you are sh*t out of luck.

We make $200K+ and don't pay full freight at a top LAC that doesn't give merit aid. Many selective schools are very generous.

[Anonymous]

everyone posting here is ignorant. Start doing the NPCs and take a screenshot of those that are favorable. Submits the FAFSA and CSS early to find out where you really stand. Start reading everything you can on financial aid and college. Educate yourself. It's all out there - you just have to take the time to learn it.

[Anonymous]

Anonymous wrote:Are families with HHI $100-200k still considered donut hole families or are they eligible for more FA these days?

What's the most prudent plan for affording college? Instate? Merit? Other?

The most prudent plan has the numbers 5, 2 and 9 in it. And/Or the letters R, O, T, H.

Prudent parents in this income group begin saving for college when their children are babies and make up any gap with cash flow or loans.

No one who is prudent in this income group is trying to cash-flow it. Because it’s just too much if you don’t have at least a baseline of savings.

[Anonymous]

Anonymous wrote:A lot depends on assets. Our income is low but assets are high and we got nothing.

In every marketing line that said, “95% of families making under 150k pay 0 in tuition”, we’d say .. we’re the 5%!

Which is completely reasonable. Liquidate some assets if you have the means.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot depends on assets. Our income is low but assets are high and we got nothing.

In every marketing line that said, “95% of families making under 150k pay 0 in tuition”, we’d say .. we’re the 5%!

This. And in markets like DC where housing value has risen rapidly, families who have owned their home for a while will be seen as having a lot of home equity they are expected to tap for college. At higher ranked schools we got some aid but still the cost was generally $60k+. Not what we considered in budget. What did fit for us (<$40k) was in-state publics and privates below the USNWR T50 that were generous with merit aid.

Tap into home equity for college, wow, how about needing that for retirement and health costs!

Right!?! Isn’t that just a parental loan that also risks jeopardizing your home? We bought our modest 1 bathroom but inner suburb home in 2004 for about $450K. They want us to take out a loan against our primary residence? How is that any different than just requiring parental loans regardless of house? Or are we expected to move despite younger siblings?

You save for 18 years, you limit things like vacations and either pay off the house or save the extra... lots of options. We got our house for a little less and still managed to save for a state college. We just adjust our priorities. If the house is worth a million now, you really think you should get financial aid when a lot of it is lifestyle choices.

We can pay for state college in full. That’s easy. But for two kids at $87k per year each at a private with a billion dollar endowment? Why so sanctimonious?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot depends on assets. Our income is low but assets are high and we got nothing.

In every marketing line that said, “95% of families making under 150k pay 0 in tuition”, we’d say .. we’re the 5%!

This. And in markets like DC where housing value has risen rapidly, families who have owned their home for a while will be seen as having a lot of home equity they are expected to tap for college. At higher ranked schools we got some aid but still the cost was generally $60k+. Not what we considered in budget. What did fit for us (<$40k) was in-state publics and privates below the USNWR T50 that were generous with merit aid.

Tap into home equity for college, wow, how about needing that for retirement and health costs!

Right!?! Isn’t that just a parental loan that also risks jeopardizing your home? We bought our modest 1 bathroom but inner suburb home in 2004 for about $450K. They want us to take out a loan against our primary residence? How is that any different than just requiring parental loans regardless of house? Or are we expected to move despite younger siblings?

You save for 18 years, you limit things like vacations and either pay off the house or save the extra... lots of options. We got our house for a little less and still managed to save for a state college. We just adjust our priorities. If the house is worth a million now, you really think you should get financial aid when a lot of it is lifestyle choices.

We can pay for state college in full. That’s easy. But for two kids at $87k per year each at a private with a billion dollar endowment? Why so sanctimonious?

So, then your kids, like ours, go to state schools. Simple. Why do you feel entitled that your kids get to go to $87K schools if you cannot afford it? Ours know they will go to state schools except if they can get merit aid. No big deal. We will pay for college and grad school within reason.

[Anonymous]

Don't have more than 1 kid.