Are there any schools that might give us financial aid?

[Anonymous]

We have an HHI of about $120K for a family of four. We live very frugally: old cars, cheap vacations with relatives, no dining out, no iphones, buying clothing at thrift shops and Target. Our house is worth about $500K, and we have no mortgage. Plus we have some inherited stocks worth about $350K. We worked very hard to pay off our mortgage, and we never touch the stocks because they are for our retirement.

In the DC area, we are basically lower middle class or working class based on our income.

We applied for financial aid at a several schools and were turned down. They said we are not eligible because of the value of our house and our savings. I am not saying we are poor, but our modest house and our stocks are our nest egg. We are not in fields that are lucrative, so we need to hang onto some savings for when we retire.

It seems crazy to me that we are not eligible for at least some financial aid. There are families receiving financial aid at the school we want to send our DD to that drive Mercedes or BMWs (leased), live in huge houses (rented or mortgaged to the hilt), wear nice clothes from Nieman Marcus, own expensive computers, ipads, go on expensive vacations. We feel that as prudent, frugal savers, we are being penalized. If we spent like crazy, borrowed money to buy everything, we could live like that too AND we'd be eligible for financial aid.

Are there any schools in the DC area that would give us at least some help? Do any have a slightly more generous financial aid policy? Our school district is not very good, so we'll have to move if we don't send DD to a private school.

[Anonymous]

You have a lot of equity with the value of the house and your stocks. You should move to a great school district and rent to free up some cash flow for yourselves. Even if you got some aid -- how would you pay the remainder of the tuition for 4 kids?

[Anonymous]

Just wait till it's time for college. Savers always get screwed.

[Anonymous]

OP, what grade level(s) are you applying for?

[Anonymous]

Your net worth is close to 1M you will be hard pressed to cry poor.

[Anonymous]

OP, it seems unnecessary to me for the people you mention (flashy cars, houses, and vacations) or you to get financial aid. We have a similar HHI to you (but only one child, so that is cheaper) with a small house with an underwater mortgage and only basic savings aside from our 401ks, and we don't get FA. So I'd say no, you don't qualify for FA, but those other folks probably shouldn't be eligible, either.

[Anonymous]

OP, I'm not sure how you'd know which families were receiving financial aid at the school you applied to but don't attend, but if that is the case then no, they shouldn't be receiving FA. But looking at your financial situation, you shouldn't be either. You make choices about what you decide to spend money on. And no, if you're unwilling to tap into equity or touch any of your stocks then you probably can't swing 60K+ a year in tuition for 2 kids. With no mortgage or flashy lifestyle you should absolutely be able to afford solid private schools for your kids, but you're going to have to look at the Catholic schools or Friends Community or some of the Montessori programs or some of the schools that aren't talked about as much on these boards. If you want the big name private school though, then you have a choice to make, tap into those stocks or decide that your retirement is more important than the big name private. Or you sell the house and move to a school district you can live with. Life is full of tough choices.

[Anonymous]

I admire your choices and you should feel proud for living prudently. But I agree with PP; FA is for people who don't have the resources that you do.

I might consider moving someplace with a saner cost of living if I were you!

[Anonymous]

Given that people in this area regularly spend 40% of their income on housing, your adjusted income (as you have NO MORTGAGE) would be closer to $170K. Plus unless your $350K are specifically in a retirement fund, it counts as liquid assets. As one PP noted, your net worth is close to $1M, so instead of feeling entitled and sorry for yourselves, you need to get a clearer sense of your relative financial status. You are surely not so naive as to think that FA is based solely on income.

[Anonymous]

OP, if you really valued the idea of sending your kids to private school, spending the money (which you clearly have) wouldn't be an issue. You valued the idea of paying off your mortgage, and you value the idea of not living on Social Security when you retire, so you put your money there. We all make choices.

Believe it or not, your kids will be fine in public school.

[Anonymous]

Anonymous wrote:You have a lot of equity with the value of the house and your stocks. You should move to a great school district and rent to free up some cash flow for yourselves. Even if you got some aid -- how would you pay the remainder of the tuition for 4 kids?

OP said "family of four", not 4 kids.

[Anonymous]

Just because there are a lot of rich people in DC doesn't mean you aren't also. The idea that you are working class is ludacris.

[Anonymous]

OP: You do make sacrifices in your everyday lives, but it sounds like maybe you are not willing to make some of the big-picture sacrifices that other families do make. You have a decent nest egg that you plan to use for retirement, and I can see why you don't want to touch it, but many families in private school (including those with iPads) do not have this luxury. You have no mortgage, and choose not to take out a home equity loan. Many folks spend more than the cost of private school on their mortgage or rent each month. It sounds like you are making smart choices, but it also sounds like if you were willing to sacrifice your current enviable financial situation you could probably make private school work.

Also, don't be so hard on other folks who get FA but live flashy lifestyles. The difference between leasing a BMW and a Honda might be something like $3000 a year. iPhones can be had for under $100 these days and many folks get them from work. Vacations are often paid for by extended family members or frequent flyer miles. Sure, it all adds up, and you're to be commended for living frugally, but when you're talking about $60K+ in tuition each year, it probably doesn't make the difference between getting FA or not.

[Anonymous]

As someone who works hard and sacrifices to send 2 kids to private school, it really pisses me off to hearing about your paid off mortgage and 350K inherited stocks and you are asking for financial aid!!! Seriously, OP... WTF?? You are in a better position to pay tuition that most people.

[Anonymous]

It's also a bit clueless to call yourself "working class" with your net worth in a city with so much poverty.