How do you pay for Harvard?

[Anonymous]

I'm just having random thoughts. Let's say a child is admitted to Harvard or a similar caliber school. Everyone always says, if they're admitted, they'll figure out how to pay. But what exactly does that mean? It's my understanding that the Ivy's don't grant merit aid. So the only assistance you're going to get is need based.

Let's say you live in DC in your house that you bought 15 years prior to going to college. You have some equity, but not oodles. Let's say there is not $250K in equity. You've been a diligent parent and you've put away some money for college. Let's say over the course of 18 years, there is now $100K in the college fund. You have your fantastic DC job that pays $150K/yr. All this is to say that you probably don't qualify for need based assistance.

Where does the money come from? Or do you have to say, I'm sorry, it's just not in the budget. Yes, there are loans available, but I don't think even student loans would cover Ivy tuition, room and board.

[Anonymous]

A combination of loans and work study (or any other job) to pay living expenses. Then you graduate with an absurd level of debt and hope your Harvard education gets you a job that will allow you to pay it all off.

I went to an Ivy, and while I loved it, I'm not so sure it was a great financial investment in the long run. I'll ultimately support my kids wherever they want to go and do my best to pay for it, but I won't be pushing them in that direction.

[Anonymous]

You'd probably get some need based aid on a family income of $150k. You can apply for various random scholarships - $1000-2000 here and there can add up. You work on campus. You take out some loans, MAYBE a home equity loan as a last resort. You pay for some out of pocket.

so annually it might look like:

25,000 college savings
15,000 current income
10,000 financial aid
5,000 scholarships
10,000 loans (either you or the student)

[Anonymous]

Wait to see what kind of financial package they offer. $150k in DC will probably qualify for some aid from Harvard.

[Anonymous]

I would cover what I could and have the kid borrow the rest. I would help him/her pay it off, but they should bear some of the burden too.

[Anonymous]

School defines your "need" based on info you provide. If, based on their calcuation, you have "need" then you will be covered. If not, you will have to come up with $.

[Anonymous]

Fill this out and you can get a ballpark estimate of what your contribution will be.

[Anonymous]

Anonymous wrote:Fill this out and you can get a ballpark estimate of what your contribution will be.

oops. here is the link:

https://college.harvard.edu/financial-aid/net-price-calculator

[Anonymous]

actually i thought harvard was free for HHIs <$180k. So in the scenario you describe you are covered.

[Anonymous]

Harvard is totally affordable for the family described.

In that scenario, Harvard will provide a great deal of financial aid. Use Harvard's net price calculator. Given the description provided for a family of 3 with 1 student, they could get up to $43k in financial aid and the family contribution would be about $20k.

Harvard does not include home equity or 401k/retirement funds in its aid calculation nor does it include loans. The aid package would differ significantly if there are lots of other assets. If the family has $100k set aside for college, that would be plenty to pay for Harvard (or most of the other Ivies).

[Anonymous]

Anonymous wrote:Harvard is totally affordable for the family described.

In that scenario, Harvard will provide a great deal of financial aid. Use Harvard's net price calculator. Given the description provided for a family of 3 with 1 student, they could get up to $43k in financial aid and the family contribution would be about $20k.

Harvard does not include home equity or 401k/retirement funds in its aid calculation nor does it include loans. The aid package would differ significantly if there are lots of other assets. If the family has $100k set aside for college, that would be plenty to pay for Harvard (or most of the other Ivies).

Goodness, you just described my family minus a few thousand in saved college funds!

Hey, Larletta, fill out that Harvard application! I've changed my mind!

[Anonymous]

I'm just going to be a grumpy old lady for a minute here, but I'd like to point out that "back in my day" ( before student loans were widely available), if you couldn't afford to pay for it, you didn't go. I graduated with a ton of smart people who went to SUNY schools, because even though they were accepted at Ivy's and such, if the money wasn't there, it wasn't there. I guess the loan availability has changed the expectations, but I find that unfortunate.

[Anonymous]

OP - now all your DC has to do is get in!

[Anonymous]

Save those $$$ for Harvard grad school - don't waste them on undergrad. 2 years should be less than 4 also.

[Anonymous]

Anonymous wrote:OP - now all your DC has to do is get in!

Is that ALL???

So Harvard and UMD are financially doable. It looks like Georgetown is not. Gettysburg seems okay and offers some merit aid. The net price calculator is interesting. I guess in the end, you never really know if it's affordable until you see the final numbers--both from the school and from your own investments.