Does everyone on here with kids applying to top 50 schools really have the $80K per year to spend?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I thought some schools took home value into account. We were told what we have in 529s abs our home equity (just not retirement savings) would be a mark against us for aid.

If you lived frugally and saved what you could, yes, it will be used against you. Meanwhile, our neighbor with debt out their ears and no savings has a kid going free at a needs blind school.

[Anonymous]

Schools love full pay suckers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I thought some schools took home value into account. We were told what we have in 529s abs our home equity (just not retirement savings) would be a mark against us for aid.

My kids didn't apply to those super-selective schools but my close friend's kid did. She said they were offered very little aid and when she discussed it with the financial aid offices they told her they should just take out a home equity loan to pay for it. We're in an area where we paid pretty low prices for our homes 20 years ago and now they are worth $1M+.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I don't think I understand your priorities.

What should she have done? Many people don't own homes, most people have "just okay" retirement accounts, if that.. I've worked for 30 years and haven't had a company paying into a 401k for 25 years. I'm on my own and do a SEP IRA. I got a small inheritance when my kids were in HS, shutting us out of good FA but . still not rich enough to pay for this. FA system is pretty classist - it would make more sense if families disclosed ALL assets and colleges said you could pay 2% of that, or whatever. Why is your 2mm house excluded?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

The aid packages say no loans, but that plenty still have to take them. We have a similar HHI and two kids, so they will be taking loans if they want to go to a school that costs more than our EFC. I would love to meet the person who managed to save twice their current hhi in addition to funding retirement

They meet your EFC with no loans. You may not like your EFC, but elite schools do make up that whole difference in aid.

On a 200k HHI, our EFC from FAFSA schools is over 100k (50k per kid). To us that makes the no loans pledge a joke.

Same. EFC is 100k and now I think that means 100k per kid.. LOL no

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I thought some schools took home value into account. We were told what we have in 529s abs our home equity (just not retirement savings) would be a mark against us for aid.

This depends on school. Georgetown takes home equity into account. Which is why they thought we could pay full price for two kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I thought some schools took home value into account. We were told what we have in 529s abs our home equity (just not retirement savings) would be a mark against us for aid.

My kids didn't apply to those super-selective schools but my close friend's kid did. She said they were offered very little aid and when she discussed it with the financial aid offices they told her they should just take out a home equity loan to pay for it. We're in an area where we paid pretty low prices for our homes 20 years ago and now they are worth $1M+.

+1 we worked our butts off to be able to afford a large down payment on our house so that our PITI could be smaller. That means we have a lot of equity in the house. Taking out the equity means refi, and that means higher loan amount. This is no different than the college telling you to take out student loans. You also end up losing that equity you built up for your retirement.

so yea, donut hole families don't get anything.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

1/3 savings, 1/3 cash flow, 1/3 debt. You can afford it.

stupid to go into debt for the vast majority of colleges.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I don't think I understand your priorities.

What should she have done? Many people don't own homes, most people have "just okay" retirement accounts, if that.. I've worked for 30 years and haven't had a company paying into a 401k for 25 years. I'm on my own and do a SEP IRA. I got a small inheritance when my kids were in HS, shutting us out of good FA but . still not rich enough to pay for this. FA system is pretty classist - it would make more sense if families disclosed ALL assets and colleges said you could pay 2% of that, or whatever. Why is your 2mm house excluded?

2mm house? You mean my 2-bed 500k coop apartment? I'm not kidding that saving for undergrad (and retirement) is exactly where we've put our money, inheritances included. At the expense of a nicer home, vacations, etc.
Consequently, we found we could meet the EFC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I thought some schools took home value into account. We were told what we have in 529s abs our home equity (just not retirement savings) would be a mark against us for aid.

If you lived frugally and saved what you could, yes, it will be used against you. Meanwhile, our neighbor with debt out their ears and no savings has a kid going free at a needs blind school.

Maybe her income is low

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I don't think I understand your priorities.

What should she have done? Many people don't own homes, most people have "just okay" retirement accounts, if that.. I've worked for 30 years and haven't had a company paying into a 401k for 25 years. I'm on my own and do a SEP IRA. I got a small inheritance when my kids were in HS, shutting us out of good FA but . still not rich enough to pay for this. FA system is pretty classist - it would make more sense if families disclosed ALL assets and colleges said you could pay 2% of that, or whatever. Why is your 2mm house excluded?

Only a few of elite private schools exclude equity on a 2m house. Tier 1 public universities that use CSS would consider home equity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I don't think I understand your priorities.

What should she have done? Many people don't own homes, most people have "just okay" retirement accounts, if that.. I've worked for 30 years and haven't had a company paying into a 401k for 25 years. I'm on my own and do a SEP IRA. I got a small inheritance when my kids were in HS, shutting us out of good FA but . still not rich enough to pay for this. FA system is pretty classist - it would make more sense if families disclosed ALL assets and colleges said you could pay 2% of that, or whatever. Why is your 2mm house excluded?

2mm house? You mean my 2-bed 500k coop apartment? I'm not kidding that saving for undergrad (and retirement) is exactly where we've put our money, inheritances included. At the expense of a nicer home, vacations, etc.
Consequently, we found we could meet the EFC.

I live in nyc so I’m unfamiliar with the 2 bedroom 500k co-op (unless you’re happy going private k-8). A lot of people can’t get the 20% down to pass the board - or otherwise pass the board. And if you got a small inheritance in last couple years, you can only move so much into retirement a year on a mid income.

But again, why should anyone’s home equity be shielded when this persons nest egg is not.

I get that people here love to say what other people should have done - but there is a more productive way: thinking of alternate approaches. Yes, people with 2mm homes do have that shielded from all top 10 colleges. Just as there’s a bad income that’s shielded (60kish), why not have a set aside that’s shielded. I’d say 500k btw home, retirement and taxable investments. Then instead of 5.6% move that number down to about 3%.

An Uber driver with a 300k lotto ticket and nothing else would pay more than my dentist who moves his income down during these years, but pays off all his equipment leases and paid down his 1mm mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I thought some schools took home value into account. We were told what we have in 529s abs our home equity (just not retirement savings) would be a mark against us for aid.

My kids didn't apply to those super-selective schools but my close friend's kid did. She said they were offered very little aid and when she discussed it with the financial aid offices they told her they should just take out a home equity loan to pay for it. We're in an area where we paid pretty low prices for our homes 20 years ago and now they are worth $1M+.

i don't think it's crazy to ask that. We are in that situation -- i have two kids in elem, right now we have about $200,000 left on our mortgage, and our house is worth $1.4 million (we live in Shaw and bought right before "gentrification"). I actually would consider using our equity to pay for college.

[Anonymous]

Anonymous wrote:We had the money to pay for top 50 but that doesn’t mean it would have been smart to just pay it. Our kids went to UVA and William & Mary. No way were we going to pay for private. That’s nuts.

Obviously, for UVA and W&M it's a no brainer---if your kid got in and wants to attend those schools, you take it and save the money.

But what if your kids had not gotten into UVA and W&M? What if they got into Mary Washington and VCU as their best state schools but also got into a T50 that costs $80K? What would you do then?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

Because donut hole families in high cost areas are screwed!!

Their kid can get into Ivies, Hopkins, etc., but will have to be full pay at $85-90k because at $175k HHI they aren’t considered in need. $360k for each kids’ undergrad is not doable without major loans even with $150k in each 529. In fact, the asserts and 529 count against them too.

Someone making $175k will receive significant aid at an Ivy. Not sure why folks continue to spread this myth.

This. Our HHI was around 190k and our kid got substantial aid. We live very, very frugally and had saved most of the ~55k/year that was our contribution. The top schools give aid packages that don't include loans, so while we still live very simply, our child received a fantastic education with no debt.

you'll receive aid as long as you have "typical assets" which for most ivy league schools is about 200k outside retirement. we maybe 150k HHI and got zero aid from Princeton, one of the more generous schools.

Sorry you had too much wealth in assets?

Yeah, I guess. No home equity and my retirement accounts are just okay, but I had about 350k in my investment account. I should have bought a place and "hid" my money in a house, I guess. DC didn't take Princeton and the debt that came along w it.

I thought some schools took home value into account. We were told what we have in 529s abs our home equity (just not retirement savings) would be a mark against us for aid.

My kids didn't apply to those super-selective schools but my close friend's kid did. She said they were offered very little aid and when she discussed it with the financial aid offices they told her they should just take out a home equity loan to pay for it. We're in an area where we paid pretty low prices for our homes 20 years ago and now they are worth $1M+.

i don't think it's crazy to ask that. We are in that situation -- i have two kids in elem, right now we have about $200,000 left on our mortgage, and our house is worth $1.4 million (we live in Shaw and bought right before "gentrification"). I actually would consider using our equity to pay for college.

Yeah, I'm okay with using home equity or retirement money, just not both.