Newly donut-hole family

[Anonymous]

Anonymous wrote:The expectation seems to be that the cost will be paid out of some combination of income and assets. You ran NPCs at schools befitting your child's top stats, correct? (Just checking that you are referring to the meet-full-need schools with a reputation for being generous)

If the results of the Net Price Calculators are not affordable for you, your child might as well understand that right now, and change the perspective to look for merit. The nice thing about top stats is that it makes you eligible for big merit money elsewhere. There are private colleges where stats over the 75th percentile are more likely to get some of the competitive merit money that the colleges give away. And there are public colleges that give big automatic merit scholarships for high stats.

The list can contain a mix, schools that are reaches for all that you probably can't afford but are willing to let him try one or two (with the family understanding that the money fairy is not expected to appear, but with a plan to appeal an aid offer that matches what you are seeing from the NPC), schools that are reaches and matches for competitive merit, and schools that are safeties thanks to automatic merit.

+1

My high-stats kid got a lot of merit from e.g. University of Pittsburgh, Case Western Reserve, and some of the Ohio LACs (Denison, Kenyon, Wooster).

OP, your kid will get merit aid - but you will not get need-based aid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why in the world would you expect to get financial aid when you make $260,000 a year???

Most people don't have an extra $6,000/mo that they don't already have going towards something else. Being expected to come up with that kind of money is daunting.

Most people don’t need to pay $70,000 a year for a kid to go to college either. There are plenty of less expensive options.

Most people don't pay $70,000 a year even at colleges with $70,000 price tags. Most people receive some level of financial aid.

But people with HHIs like OP's family's income do have to pay $70K/year - or look elsewhere.

[Anonymous]

FA is based on prior prior year income. Should provide a breathing room.

[Anonymous]

OP said first DC is a junior so not only 18 months but another 7 at $260k before the FA form is due.

Not that much breathing room.

We make about the same as OP and have quite a bit saved and the calculators pretty much say we should pay $95k.

So when both kids are in school, they may get something if one of the is at a school that meets all need.

[Anonymous]

With your previous income, you should have been able to save something. If you didn't change your lifestyle, you take the difference and put it into college.

[Anonymous]

DC really does warp people’s perceptions of how rich they are, doesn’t it.

[Anonymous]

This is the difference between financial aid for private k-12 and financial aid for college. In private k-12, schools will give those donut hole families something in order to encourage those families to attend. It may only be 10%, but it’s something. Those same schools won’t give the family with s $50K income enough financial aid to attend. In contrast, colleges and universitie, follow a better formula, as it should be, to provide families with a $50k income the means to attend and expect high income families to pay.. Some families in the donut hole are conditioned to expect something as a result.

[Anonymous]

prior to that, (although 2 full time incomes, one was quite low because of family obligations) we were in the mid 100s

Sounds like you should be used to living on a "mid 100s" salary and the extra income can go to college.

[Anonymous]

Anonymous wrote:FA is based on prior prior year income. Should provide a breathing room.

Two years prior now, but yes

[Anonymous]

Anonymous wrote:

Anonymous wrote:NP. What is involved in appealing an aid offer. When would one do that and how?

I do not know anyone in real life who did this with any success. I have only seen "success" stories on the anonymous internet.

I do. They reported to Top College A that they got a better offer from Top College B, but really wanted to go to A, could A offer better? Person in FA at A thouht A would offer better but not match B, but they did indeed match B. Kid chose A. Appeal saved parents something like $12k/year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:FA is based on prior prior year income. Should provide a breathing room.

Two years prior now, but yes

Is that 2 years prior to applying (if EA) or attending? For example, if my kid graduates in 2022 and applies EA in Fall of 2021, we would use Tax year 2020, right? Or would we use 2019?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FA is based on prior prior year income. Should provide a breathing room.

Two years prior now, but yes

Is that 2 years prior to applying (if EA) or attending? For example, if my kid graduates in 2022 and applies EA in Fall of 2021, we would use Tax year 2020, right? Or would we use 2019?

2020. EA doesn't matter. If applying for fall 2022, tax year 2020 will be considered for fall 2022-23. Then 2021 for sophomore year, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FA is based on prior prior year income. Should provide a breathing room.

Two years prior now, but yes

Is that 2 years prior to applying (if EA) or attending? For example, if my kid graduates in 2022 and applies EA in Fall of 2021, we would use Tax year 2020, right? Or would we use 2019?

2020. EA doesn't matter. If applying for fall 2022, tax year 2020 will be considered for fall 2022-23. Then 2021 for sophomore year, etc.

Got it. Thanks for the clarification!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why in the world would you expect to get financial aid when you make $260,000 a year???

Most people don't have an extra $6,000/mo that they don't already have going towards something else. Being expected to come up with that kind of money is daunting.

Most people don’t need to pay $70,000 a year for a kid to go to college either. There are plenty of less expensive options.

Most people don't pay $70,000 a year even at colleges with $70,000 price tags. Most people receive some level of financial aid.

But people with HHIs like OP's family's income do have to pay $70K/year - or look elsewhere.

That's why people call the general $150k-$300k range the donut hole. Obviously there are other colleges, but that's not the point. The point is that a certain category of college is accessible to the poor, LMC, and the rich, but not to UMC.

My parents' income dropped from $75k to $35k to temporary disability while I was in college so, in the grand scheme of things, I'll take having to stretch to pay for my DCs' college and limit them from the more expensive private colleges but it seems disingenuous to pretend the donut hole isn't a thing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why in the world would you expect to get financial aid when you make $260,000 a year???

Most people don't have an extra $6,000/mo that they don't already have going towards something else. Being expected to come up with that kind of money is daunting.

Most people don’t need to pay $70,000 a year for a kid to go to college either. There are plenty of less expensive options.

the donut hole is a myth created by people who spend unwisely and then complain. Our HHI is at the lower end of that range and we managed to save more than enough. Our children are currently in college.


Most people don't pay $70,000 a year even at colleges with $70,000 price tags. Most people receive some level of financial aid.

But people with HHIs like OP's family's income do have to pay $70K/year - or look elsewhere.

That's why people call the general $150k-$300k range the donut hole. Obviously there are other colleges, but that's not the point. The point is that a certain category of college is accessible to the poor, LMC, and the rich, but not to UMC.

My parents' income dropped from $75k to $35k to temporary disability while I was in college so, in the grand scheme of things, I'll take having to stretch to pay for my DCs' college and limit them from the more expensive private colleges but it seems disingenuous to pretend the donut hole isn't a thing.