Affording College with HHI $100-$200k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Like another poster, our income is so low that we'd qualify for financial aid, but our assets are high, so we don't.

I filled out the FAFSA and CSS anyway. DS got merit aid.

If your assets are high, aren't they generating a decent amount of interest and/or dividends (or rental payments if properties) for you? That's counted as income for tax purposes.

I don’t have very many individual stocks w dividends and I picked etfs that don’t throw off income. I have mostly growth stocks so I have appreciation but no taxable income.

But it is assets. You are expected to use them for college. Up to you if you do or not. If you don't want to, then find a school you can afford.

our retirement system is set up in a way that I am limited in what I move into retirement by my low income. And because in my 20 and 30s I flipped two properties (not earned income), I have most of my assets growing outside of retirement.

"But it is assets" I'd be 100% good with colleges looking at ALL your assets. Home, car, boat, retirement, vanguard account -- all of it -- and taking a percent. But I dont know why my money isn't considered retirement savings just because it's in one vanguard account and not another. I'm 52. That IS my retirement.

I dont understand why anyone's home is shielded either. WE could all borrow against that. Factor it all in and take 3% of everything.

[Anonymous]

Anonymous wrote:
Like another poster, our income is so low that we'd qualify for financial aid, but our assets are high, so we don't.

I filled out the FAFSA and CSS anyway. DS got merit aid.

Same here.

My spouse keeps thinking we will get financial aid because our combined salaries are low. But we have assets…

We got zero. Spouse wants to try again next year…

[Anonymous]

I’m tired of hearing from a relative how they are so poor and can barely afford college. They earn over $200k, but you’d think they were eating cold beans from can every day.

They had 18 years to open a 529 and save, and they never opened a 529.

[Anonymous]

Anonymous wrote:I’m tired of hearing from a relative how they are so poor and can barely afford college. They earn over $200k, but you’d think they were eating cold beans from can every day.

They had 18 years to open a 529 and save, and they never opened a 529.

see but the frustrating thing is, they may get aid because of it.

I dont really know why we've pegged this one expense to our income and assets. we dont pay for a car this way, or a home. I wish generally prices were cheaper plus there were 10 yr zero interest govt loans.

but if we have to peg it to income, I'd love it if they looked at 18 years of income and had some recipe for how much you could have saved and thus will have to pay.

[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%!

Yep. Every college we visited brayed about how much financial aid they were giving away.

How about not making the cost so high in the first place, huh? That would streamline things, eliminate a ton of agonizing and hoping for aid, and make it so much more transparent.

On the money (in more ways than one, hey-o)

[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%!

Yep. Every college we visited brayed about how much financial aid they were giving away.

How about not making the cost so high in the first place, huh? That would streamline things, eliminate a ton of agonizing and hoping for aid, and make it so much more transparent.

The reason they can give you aid is because richer families international students pay full ride. So they need to keep the sticker price high. And also to brag about how much discount/aid you are getting as a way to convince you to come.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Like another poster, our income is so low that we'd qualify for financial aid, but our assets are high, so we don't.

I filled out the FAFSA and CSS anyway. DS got merit aid.

If your assets are high, aren't they generating a decent amount of interest and/or dividends (or rental payments if properties) for you? That's counted as income for tax purposes.

I don’t have very many individual stocks w dividends and I picked etfs that don’t throw off income. I have mostly growth stocks so I have appreciation but no taxable income.

But it is assets. You are expected to use them for college. Up to you if you do or not. If you don't want to, then find a school you can afford.

our retirement system is set up in a way that I am limited in what I move into retirement by my low income. And because in my 20 and 30s I flipped two properties (not earned income), I have most of my assets growing outside of retirement.

"But it is assets" I'd be 100% good with colleges looking at ALL your assets. Home, car, boat, retirement, vanguard account -- all of it -- and taking a percent. But I dont know why my money isn't considered retirement savings just because it's in one vanguard account and not another. I'm 52. That IS my retirement.

I dont understand why anyone's home is shielded either. WE could all borrow against that. Factor it all in and take 3% of everything.

College is not mandatory and a luxury. If your parents cannot or refuse to pay, you don't go o take loans. Sounds like you are stingy and selfish. You own an expensive house, boat and other stuff and you think someone else should fund your children's college?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Like another poster, our income is so low that we'd qualify for financial aid, but our assets are high, so we don't.

I filled out the FAFSA and CSS anyway. DS got merit aid.

If your assets are high, aren't they generating a decent amount of interest and/or dividends (or rental payments if properties) for you? That's counted as income for tax purposes.

I don’t have very many individual stocks w dividends and I picked etfs that don’t throw off income. I have mostly growth stocks so I have appreciation but no taxable income.

But it is assets. You are expected to use them for college. Up to you if you do or not. If you don't want to, then find a school you can afford.

our retirement system is set up in a way that I am limited in what I move into retirement by my low income. And because in my 20 and 30s I flipped two properties (not earned income), I have most of my assets growing outside of retirement.

"But it is assets" I'd be 100% good with colleges looking at ALL your assets. Home, car, boat, retirement, vanguard account -- all of it -- and taking a percent. But I dont know why my money isn't considered retirement savings just because it's in one vanguard account and not another. I'm 52. That IS my retirement.

I dont understand why anyone's home is shielded either. WE could all borrow against that. Factor it all in and take 3% of everything.

College is not mandatory and a luxury. If your parents cannot or refuse to pay, you don't go o take loans. Sounds like you are stingy and selfish. You own an expensive house, boat and other stuff and you think someone else should fund your children's college?

Nope. I don’t own any of that. But guess what. A boat isn’t counted. Your expensive house is sheltered. Your stuff doesn’t count and neither does your retirement

I’m saying COUNT IT ALL

[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.

Your student needs to be a superstar in order to get generous merit at T50-100. We found merit so COA ends up at $20-$23k at much lower ranked schools.

Some colleges have said they'll announce merit in December. Makes me think they're waiting for the FAFSA before making an offer.

[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.

Your student needs to be a superstar in order to get generous merit at T50-100. We found merit so COA ends up at $20-$23k at much lower ranked schools.

Some colleges have said they'll announce merit in December. Makes me think they're waiting for the FAFSA before making an offer.

Can you give me some examples. I have a junior and we’ll be trying to go for merit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Like another poster, our income is so low that we'd qualify for financial aid, but our assets are high, so we don't.

I filled out the FAFSA and CSS anyway. DS got merit aid.

If your assets are high, aren't they generating a decent amount of interest and/or dividends (or rental payments if properties) for you? That's counted as income for tax purposes.

I don’t have very many individual stocks w dividends and I picked etfs that don’t throw off income. I have mostly growth stocks so I have appreciation but no taxable income.

But it is assets. You are expected to use them for college. Up to you if you do or not. If you don't want to, then find a school you can afford.

our retirement system is set up in a way that I am limited in what I move into retirement by my low income. And because in my 20 and 30s I flipped two properties (not earned income), I have most of my assets growing outside of retirement.

"But it is assets" I'd be 100% good with colleges looking at ALL your assets. Home, car, boat, retirement, vanguard account -- all of it -- and taking a percent. But I dont know why my money isn't considered retirement savings just because it's in one vanguard account and not another. I'm 52. That IS my retirement.

I dont understand why anyone's home is shielded either. WE could all borrow against that. Factor it all in and take 3% of everything.

College is not mandatory and a luxury. If your parents cannot or refuse to pay, you don't go o take loans. Sounds like you are stingy and selfish. You own an expensive house, boat and other stuff and you think someone else should fund your children's college?

Nope. I don’t own any of that. But guess what. A boat isn’t counted. Your expensive house is sheltered. Your stuff doesn’t count and neither does your retirement

I’m saying COUNT IT ALL

It absolutely all should be counted as well as income going back 10 years and only exceptions made for death, special needs, helping family, etc. Lifestyle choices are not an excuse for not saving.

[Anonymous]

There are plenty of colleges that give “automatic” merit aid based on GPA and/or SAT OR ACT. Focusing on these takes a lot of the guesswork out of it.

Perhaps the easiest way to get the price down is to have your kid take enough AP classes & community college classes so that they have can graduate in 3 years (several previous threads discuss this approach).

[Anonymous]

Anonymous wrote: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.

Well, when everyone will be in the same boat for 24/25 with new FAFSA being online Dec 1 - instead of Oct 1.

[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.

Your student needs to be a superstar in order to get generous merit at T50-100. We found merit so COA ends up at $20-$23k at much lower ranked schools.

Some colleges have said they'll announce merit in December. Makes me think they're waiting for the FAFSA before making an offer.

We called several EA schools about this. Some schools told us they would wait for FAFSA to make admission decisions, and any acceptance would include the full package, ie need-based + merit — which might mean later notification relative to previous years. Other schools said they would send decision + merit separately, and first, followed by a separate FA decision once FAFSA was in.

[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.

Your student needs to be a superstar in order to get generous merit at T50-100. We found merit so COA ends up at $20-$23k at much lower ranked schools.

Some colleges have said they'll announce merit in December. Makes me think they're waiting for the FAFSA before making an offer.

My 26ACT/3.5UW/no APs attended a school ranked in the 80s. Got 1/3 tuition merit. Had that offer from another similarly ranked school as well. Never paid more than $40K/year. Had they had a 30+ACT would have gotten 50% tuition and would have paid $32/33K/year only.
You don't have to be "a superstar" to get decent merit.