HHI & Full Pay Threshold

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, you can't determine what you will pay by income alone. At some elite schools that don't consider home equity, an income of $200-250K may give some aid. Our income is $219K. For our family, Duke was a no-go, our EFC was $65K. He wanted to apply even though we checked the NPC, which ended up being accurate. But Stanford is $44K plus our son is expected to contribute $3K per year (no loans offered) for a total of $47K (EFC). We told him our cap was $45 per year for any school. Anything above that he would have to take out a subsidized Stafford loan ($5500), merit, and/or work PT. He got no financial aid from OOS public schools, only merit. He didn't apply to any public that wasn't known to give merit or was above $50K OOS/in-state.

We have 401ks, modest savings, stocks/investments under $20K, 529 to contribute $20K per year, and 500K+ home equity. We plan to cash flow for the remaining balance. We didn't start making more than $150K until he started 8th grade.

Where did all your money go? The house> I don't get where all your savings/investments went.

Both of us had student loans until 5 years ago. Prioritized 401ks and putting some money in 529. Purchased a house late (we rented until our kid was in middle school) and needed to use most of our savings for a 20% downpayment/465K mortgage. House appreciated quickly in the last 7 years. No family help and didn't make over 150 HHI until fairly recently.

All my numbers are very similar to yours, except I’ll have a lot less equity. I think you’re doing great and have obviously made some smart choices. It’s a different situation if you’ve been making 200k for 20 years or 5 years. People don’t always get that.

'

I don't get not living in your means and saving. We made much less and seemed to save.

Everyone’s circumstances are different.

Also, some people (not myself) are philosophically opposed to paying for the entire degree in cash because if the kid drops out or fails classes, it costs the kid nothing, then.

You have a really poor view of your kids. With loans it does not give them an incentive to be more responsible and if they are not something went wrong long before college years.

You have to save from the start and make it a priority.

You missed the part where I said “not myself.” I saved for my kids. But you would be foolish to think that a kid doesn’t have to want their degree really bad to finish school if they have to work and/or take out loans.

And I don’t think you have any clue how expensive life is today.

No, you are clueless and have a spending issue.

Have a nice day.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, you can't determine what you will pay by income alone. At some elite schools that don't consider home equity, an income of $200-250K may give some aid. Our income is $219K. For our family, Duke was a no-go, our EFC was $65K. He wanted to apply even though we checked the NPC, which ended up being accurate. But Stanford is $44K plus our son is expected to contribute $3K per year (no loans offered) for a total of $47K (EFC). We told him our cap was $45 per year for any school. Anything above that he would have to take out a subsidized Stafford loan ($5500), merit, and/or work PT. He got no financial aid from OOS public schools, only merit. He didn't apply to any public that wasn't known to give merit or was above $50K OOS/in-state.

We have 401ks, modest savings, stocks/investments under $20K, 529 to contribute $20K per year, and 500K+ home equity. We plan to cash flow for the remaining balance. We didn't start making more than $150K until he started 8th grade.

Where did all your money go? The house> I don't get where all your savings/investments went.

Both of us had student loans until 5 years ago. Prioritized 401ks and putting some money in 529. Purchased a house late (we rented until our kid was in middle school) and needed to use most of our savings for a 20% downpayment/465K mortgage. House appreciated quickly in the last 7 years. No family help and didn't make over 150 HHI until fairly recently.

All my numbers are very similar to yours, except I’ll have a lot less equity. I think you’re doing great and have obviously made some smart choices. It’s a different situation if you’ve been making 200k for 20 years or 5 years. People don’t always get that.

'

I don't get not living in your means and saving. We made much less and seemed to save.

Everyone’s circumstances are different.

Also, some people (not myself) are philosophically opposed to paying for the entire degree in cash because if the kid drops out or fails classes, it costs the kid nothing, then.

You have a really poor view of your kids. With loans it does not give them an incentive to be more responsible and if they are not something went wrong long before college years.

You have to save from the start and make it a priority.

WOW. I hope your life goes perfectly and you never have a car accident, a cancer diagnosis, a flood, a job loss or any other issues.

You truly do not have a clue.

I do have long term health issues which is why it was more, not less of a priority to save. We will pay for a state school and grad school.

Very few people can do that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, you can't determine what you will pay by income alone. At some elite schools that don't consider home equity, an income of $200-250K may give some aid. Our income is $219K. For our family, Duke was a no-go, our EFC was $65K. He wanted to apply even though we checked the NPC, which ended up being accurate. But Stanford is $44K plus our son is expected to contribute $3K per year (no loans offered) for a total of $47K (EFC). We told him our cap was $45 per year for any school. Anything above that he would have to take out a subsidized Stafford loan ($5500), merit, and/or work PT. He got no financial aid from OOS public schools, only merit. He didn't apply to any public that wasn't known to give merit or was above $50K OOS/in-state.

We have 401ks, modest savings, stocks/investments under $20K, 529 to contribute $20K per year, and 500K+ home equity. We plan to cash flow for the remaining balance. We didn't start making more than $150K until he started 8th grade.

Where did all your money go? The house> I don't get where all your savings/investments went.

Both of us had student loans until 5 years ago. Prioritized 401ks and putting some money in 529. Purchased a house late (we rented until our kid was in middle school) and needed to use most of our savings for a 20% downpayment/465K mortgage. House appreciated quickly in the last 7 years. No family help and didn't make over 150 HHI until fairly recently.

All my numbers are very similar to yours, except I’ll have a lot less equity. I think you’re doing great and have obviously made some smart choices. It’s a different situation if you’ve been making 200k for 20 years or 5 years. People don’t always get that.

'

I don't get not living in your means and saving. We made much less and seemed to save.

Everyone’s circumstances are different.

Also, some people (not myself) are philosophically opposed to paying for the entire degree in cash because if the kid drops out or fails classes, it costs the kid nothing, then.

You have a really poor view of your kids. With loans it does not give them an incentive to be more responsible and if they are not something went wrong long before college years.

You have to save from the start and make it a priority.

You missed the part where I said “not myself.” I saved for my kids. But you would be foolish to think that a kid doesn’t have to want their degree really bad to finish school if they have to work and/or take out loans.

And I don’t think you have any clue how expensive life is today.

No, you are clueless and have a spending issue.

Sigh. Reading is not your strong suit.

[Anonymous]

We’ve put some aside, but not nearly enough.

Tuition alone at Mason is now over $50k

I guess they assume we will use all our home equity to pay for college, huh? That is only recognized after we sell

[Anonymous]

Anonymous wrote:We’ve put some aside, but not nearly enough.

Tuition alone at Mason is now over $50k

I guess they assume we will use all our home equity to pay for college, huh? That is only recognized after we sell

It’s approximately $15,000/year in tuition alone for instate, times 4 years, so $60,000. Close though!

[Anonymous]

Anonymous wrote:We’ve put some aside, but not nearly enough.

Tuition alone at Mason is now over $50k

I guess they assume we will use all our home equity to pay for college, huh? That is only recognized after we sell

I would never draw home equity, nor would I take out parent or private loans. Would consider student (stafford) loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We’ve put some aside, but not nearly enough.

Tuition alone at Mason is now over $50k

I guess they assume we will use all our home equity to pay for college, huh? That is only recognized after we sell

I would never draw home equity, nor would I take out parent or private loans. Would consider student (stafford) loans.

I’m not planning to. Just saying that those above makes it sound like that is taken into account.

[Anonymous]

It is getting to the point that some oos schools are cheaper than in state.

[Anonymous]

Anonymous wrote:It is getting to the point that some oos schools are cheaper than in state.

We live in New England, so that was certainly the case for us.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, you can't determine what you will pay by income alone. At some elite schools that don't consider home equity, an income of $200-250K may give some aid. Our income is $219K. For our family, Duke was a no-go, our EFC was $65K. He wanted to apply even though we checked the NPC, which ended up being accurate. But Stanford is $44K plus our son is expected to contribute $3K per year (no loans offered) for a total of $47K (EFC). We told him our cap was $45 per year for any school. Anything above that he would have to take out a subsidized Stafford loan ($5500), merit, and/or work PT. He got no financial aid from OOS public schools, only merit. He didn't apply to any public that wasn't known to give merit or was above $50K OOS/in-state.

We have 401ks, modest savings, stocks/investments under $20K, 529 to contribute $20K per year, and 500K+ home equity. We plan to cash flow for the remaining balance. We didn't start making more than $150K until he started 8th grade.

Where did all your money go? The house> I don't get where all your savings/investments went.

Both of us had student loans until 5 years ago. Prioritized 401ks and putting some money in 529. Purchased a house late (we rented until our kid was in middle school) and needed to use most of our savings for a 20% downpayment/465K mortgage. House appreciated quickly in the last 7 years. No family help and didn't make over 150 HHI until fairly recently.

All my numbers are very similar to yours, except I’ll have a lot less equity. I think you’re doing great and have obviously made some smart choices. It’s a different situation if you’ve been making 200k for 20 years or 5 years. People don’t always get that.

'

I don't get not living in your means and saving. We made much less and seemed to save.

Everyone’s circumstances are different.

Also, some people (not myself) are philosophically opposed to paying for the entire degree in cash because if the kid drops out or fails classes, it costs the kid nothing, then.

You have a really poor view of your kids. With loans it does not give them an incentive to be more responsible and if they are not something went wrong long before college years.

You have to save from the start and make it a priority.

WOW. I hope your life goes perfectly and you never have a car accident, a cancer diagnosis, a flood, a job loss or any other issues.

You truly do not have a clue.

I do have long term health issues which is why it was more, not less of a priority to save. We will pay for a state school and grad school.

Very few people can do that.

+1. Law school can be as much as $105k a year now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You make at least $100k too much to get any kind of need-based aid.

We make $180,000, but don’t have a home. Princeton showed us with an expected family contribution of $20,000, and other selective schools showed EFCe of $40,000 to $50,000.

So, save as much as you can, but, when your kid’s a senior, it makes sense to fill out the EFC calculators and apply to some dream schools just to see what happens. You don’t really know till you know.

I’ve filled out the calculators a few places and all but Princeton have us as full pay. Now how do our kids get into Princeton….

[Anonymous]

Anonymous wrote:What is the house hold income for which universities expect full pay? We make around $225,000 and have one child in early elementary school. Should I prepare (save) for full pay?

Yes. You only have 1 child and you will have a high HHI. Why wouldn't you be full pay? Your equity, savings, retirement will also be considered.

[Anonymous]

You shouldn’t pay for a master’s or PhD (unless it’s a master of physicians assistant studies). You should only pay for professional school, which is impossible for 99% of people to pay for in cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We’ve put some aside, but not nearly enough.

Tuition alone at Mason is now over $50k

I guess they assume we will use all our home equity to pay for college, huh? That is only recognized after we sell

I would never draw home equity, nor would I take out parent or private loans. Would consider student (stafford) loans.

I have checked EFC calculators at ivies recently and they inquire not only about equity in home but value of home and amount in retirement accounts. Does their EFC include you dipping into your home equity or retirement to pay for college??

[Anonymous]

Schools look at your financials this way: Past income (savings) + current income (salary ) + future earnings (loans) = EFC. Also, colleges add your monthly 401 contribution back into your monthly disposable income.