financial aid at our Big3 is a farce

[Anonymous]

OP - I'm pretty certain this an extreme case (if true) - so by posting here you are totally outing yourself to these "family/friends" who will clearly recognize themselves in this story and you as well. It seems strange that you would do that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know of a similar story. People moved money around, spent their cash savings on a Mercedes just before the FA application was due. Got 50%. Do not need it.

You can afford 50% of SSFS at $160k

I’m
The SSFS poster, no we can’t. It would be close to 15k for 9 months if the year. That’s just for elem. It goes up for HS. We have a mortgage, car payment, etc.

????

I'm a single parent making $150k and I can afford my kid's $25k tuition. If it were important to you, you'd make it work.

Yeah I'm also a single parent and make far less and even my cheaper daycare option cost more than PP is willing to pay. I agree that it is time for SSFS to extend their aid past 50% but not for people who can pay but just don't want to.

[Anonymous]

Or maybe your friend was honest on their app and has lied to YOU about their assets?

[Anonymous]

It’s quite possible for someone’s taxes to look like they have zero income if someone owns a business and is deducting assets that have depreciated. My husband and I make more than $500K a year but our taxes show our income in the negative due to business losses. It is not shady. We have filed everything according to the tax code. Due to this, we received Biden’s child tax credit checks last summer and fall. We have received all of our federal taxes back as a refund check (which pays our kids private school tuitions) the past few years. I think it is silly the government issues these based on tax returns only. We have 2 homes and high net worth but this is what the tax code allows. I believe if a school looks at tax returns and the homes aren’t in their names, this result is quite possible.

[Anonymous]

OP is either bitter or a troll. Time to MYOB.

[Anonymous]

Anonymous wrote:OP is either bitter or a troll. Time to MYOB.

+1

If OP wants to have a say in financial aid decisions they should join the school’s board. Otherwise this is just sour grapes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As we cannot verify the story I'm not inclined to think it's true. DCUM is rife with people trying to stir up controversy.

As others have aid your tax records are submitted when you apply for aid, and the admissions office people aren't clueless either when it comes to things like club memberships or second homes.

+1 there are always lots of strange posts around the times decisions are due

OP here. I wish there was some way to prove this because I can assure you that it's legit.
I'm not sure what posting about this falsely on here would get someone. Are you thinking that I am trying to persuade someone to give up a spot?
Nope--I didn't have a kid apply this year. Mine are both in their terminal schools.
Is there a secret password I can share to let you know that I'm for real? Lame joke but I have no dog in the fight except my tuition money.
It's just UGH. So freaking frustrating. I am also eating crow about this because I told this family repeatedly (when asked). "no, it's not worth it to apply".
Now I feel like a moron as I'm paying this $ and paying for them to attend too.

Could they be lying to you?

[Anonymous]

Regardless of whether it’s sour grapes, if this scenario is possible (as a PP illustrated), it certainly undercuts the school’s claim that FA goes to families that could not otherwise afford the school. You know, actual low-income people. That should be a concern to all the families who believe in DEI.

Right?

[Anonymous]

OP here.
It's definitely sour grapes. I'm not denying that at all.
And the income is real. Their salaries are public information and it's W2 income.
Anyway, I posted to process.
My thoughts:
-I now think that everyone who says "this can't or won't happen" is pretty naive. I was pretty naive. These schools are independent. They can give money to whomever they want. I was at an accepted parent event a few years back and all the basketball player parents were talking about their aid and they were all professionals (law firm attornies, etc).
I think this didn't bother me because the kids were clearly athletic recruits. This kid I know is not an athletic recruit. It's interesting to me that the kid I'm talking about did not get any aid from Catholic schools. They most likely have more rigid cut-offs. Independent schools can give aid to whoever-the-heck they want.
-If you donate, donate knowing that your money may go to someone making a lot of money.
-APPLY for aid!! DCUM routinely scoffs at anyone applying for aid who makes more than about $200K. I actually told this family member that I didn't think there was any way they would get aid. Well, they went ahead and applied and they got aid. If you make up to say, $500K. APPLY. If you don't ask, you won't get the aid.
It's interesting because I used to think that asking for aid would decrease the chance of admission but this really isn't the case at the top schools that are need blind (as this case demonstrates). They truly are need blind.

[Anonymous]

What's the school, OP?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have a friend/family member (being vague on this) whose kid was admitted to a Big3 for high school. HHI $450K-500K+, two homes worth 2 million+ (one rented out), country club membership, one tuition. I am 100% sure the estimate of their income is correct. They asked for and received 50% aid. I'm honestly shocked and surprised. We pinch our pennies for this school and even donate beyond. We make less money than they do. I never even thought
of asking for aid. This kid is not a minority, very smart but no special hooks. I'm just sort of floored. I feel like broadcasting this to the school. It feels like a gut punch.
This is not a troll post or made-up post.

I can believe it. Many, many millionaires take advantage of the tax laws in the US that most people don't know about. That is how Donald Trump has gone bankrupt four times and still has the money and assets he has. It's how the current governor of Virginia and his partners paid taxes on salaries of less than $200,000 while earning millions from the company they founded. It's called a "Family Charitable Trust" or "Foundation" and anybody with money can avoid paying their fair share of income taxes by having this type fund. The Trust/Foundation invests in high yield investments to increase its worth. The Trust/Foundation is NOT TAXED.

Here' how it works. Rather than receiving a paycheck from their employer, their full salary without withholding and any stock or bond distribution they receive is sent directly to the Trust. The Trust then purchases a million dollar home, pays the property taxes, upkeep, etc., purchases a vehicle or two and pays all auto expenses, provides vacation homes, etc. The Trust holds all the assets. The income earner serves as Chairmen of the Board of the Trust, his/her spouse and members of their family serve as members of the Board overseeing the trust and are compensated accordingly. The children who serve on the Board have the balance of their tuition paid as part of their salary as well as other school expenses they incur. The distribution to the Board members is usually taxable.

The Trust must annually distribute income. That's why you see professional athletes and others distributing backpacks and school supplies in August and toys to needy children at Christmas. The money comes from their Trusts. If you watch Public Television, you will see programs funded by Private and Family Trusts and Foundations.

So that is how some millionaire children are able to receive financial aid from schools. Financial aid is based on your annual income, assets, etc. Since all your assets are not in your name, you own nothing and owe very little and that is how financial aid is calculated.

I have 3 trusts. They all work slightly differently. What is clear to me is that you don't have one and don't know how they work. You comments are not helpful or factual. Thanks for causing a stir though....

[Anonymous]

Anonymous wrote:OP - I'm pretty certain this an extreme case (if true) - so by posting here you are totally outing yourself to these "family/friends" who will clearly recognize themselves in this story and you as well. It seems strange that you would do that.

I get a kick out of people that assume everyone who goes to private school monitors this particular forum. I'm sure it is less than 1% of private school parents. .

[Anonymous]

Maybe their wealth is mostly in cryptocurrencies and the school couldn’t see it .

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have a friend/family member (being vague on this) whose kid was admitted to a Big3 for high school. HHI $450K-500K+, two homes worth 2 million+ (one rented out), country club membership, one tuition. I am 100% sure the estimate of their income is correct. They asked for and received 50% aid. I'm honestly shocked and surprised. We pinch our pennies for this school and even donate beyond. We make less money than they do. I never even thought
of asking for aid. This kid is not a minority, very smart but no special hooks. I'm just sort of floored. I feel like broadcasting this to the school. It feels like a gut punch.
This is not a troll post or made-up post.

I can believe it. Many, many millionaires take advantage of the tax laws in the US that most people don't know about. That is how Donald Trump has gone bankrupt four times and still has the money and assets he has. It's how the current governor of Virginia and his partners paid taxes on salaries of less than $200,000 while earning millions from the company they founded. It's called a "Family Charitable Trust" or "Foundation" and anybody with money can avoid paying their fair share of income taxes by having this type fund. The Trust/Foundation invests in high yield investments to increase its worth. The Trust/Foundation is NOT TAXED.

Here' how it works. Rather than receiving a paycheck from their employer, their full salary without withholding and any stock or bond distribution they receive is sent directly to the Trust. The Trust then purchases a million dollar home, pays the property taxes, upkeep, etc., purchases a vehicle or two and pays all auto expenses, provides vacation homes, etc. The Trust holds all the assets. The income earner serves as Chairmen of the Board of the Trust, his/her spouse and members of their family serve as members of the Board overseeing the trust and are compensated accordingly. The children who serve on the Board have the balance of their tuition paid as part of their salary as well as other school expenses they incur. The distribution to the Board members is usually taxable.

The Trust must annually distribute income. That's why you see professional athletes and others distributing backpacks and school supplies in August and toys to needy children at Christmas. The money comes from their Trusts. If you watch Public Television, you will see programs funded by Private and Family Trusts and Foundations.

So that is how some millionaire children are able to receive financial aid from schools. Financial aid is based on your annual income, assets, etc. Since all your assets are not in your name, you own nothing and owe very little and that is how financial aid is calculated.

The description on foundations and charitable trusts makes Wikipedia look like a Masters in Economics from University of Chicago. No, that’s not how charitable trusts, foundations and DAFs work. The point of the trust is that you can take income that would otherwise be taxable (like a windfall or capital gain from a business sale or exiting an appreciated position) and put the money into the trust. The money must stay in the trust can cannot be taken out. The trust must use the money to make contributions to bona fide charities and cannot buy properties or any of the other nonsense imputed above. Depending on the specific vehicle, it may be required that a certain % of the assets are contributed on an annual basis.

There are certainly many ways that wealthy people avoid paying taxes, but what the PP spewed is gibberish.

This doesn't sound right, it depends on how they trust is written. I have family members with a trust that I help them manage and it states circumstances in which money is or can be taken out.

Keep up. This is about charitable trusts/foundations. Not regular family trusts.

[Anonymous]

Anonymous wrote:What's the school, OP?

Is that STA?