ok, don't crucify me.. question about financial aid.

[Anonymous]

Anonymous wrote:Please settle a conversation between my husband and I.
We are new to this. We are not coming at this thinking we are owed a dollar.
Just the facts pls.

HHI $350K
Would we get any reduction in tuition for high school twins at a school like Sidwell or GDS or the Cathedral schools?
Tuition for 2 is $84K a year.
What if our 3rd attended? Tuition bill then $126K.

Thank you.

As a parent at one of these schools, I would certainly hope not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sounds like you are overspending.

No, we're currently saving.
But let's say a tuition bill of $126k a year.

$350K
-$36K (401K)
-105K (taxes we pay between federal and state)
-$48K ($3150 total house payment plus I'm rounding up all house-related expenses to $4K a month--expected repairs/utilities--etc).
-126K tuition.
-$5K health insurance premium.

$2500 a month. Could you raise 3 kids in DC on that? (ALL expenses either than housing. Yes, of course it could be done... It's done by MANY people in DC all the time). But that $2500 would cover ALL food, cleaning supplies, clothing, any school or after school/sports activities for 3 high school kids, college savings, travel, medical copays and costs, gas, life insurance, cell phones, TV, car insurance, etc.
You have to admit it would be tight.

School and after school/ sports activities for 2 high school kids
Travel
Cell phones
TV

Sounds like a lot of overspending to me. All of those things are discretionary, at best.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sounds like you are overspending.

No, we're currently saving.
But let's say a tuition bill of $126k a year.

$350K
-$36K (401K)
-105K (taxes we pay between federal and state)
-$48K ($3150 total house payment plus I'm rounding up all house-related expenses to $4K a month--expected repairs/utilities--etc).
-126K tuition.
-$5K health insurance premium.

$2500 a month. Could you raise 3 kids in DC on that? (ALL expenses either than housing. Yes, of course it could be done... It's done by MANY people in DC all the time). But that $2500 would cover ALL food, cleaning supplies, clothing, any school or after school/sports activities for 3 high school kids, college savings, travel, medical copays and costs, gas, life insurance, cell phones, TV, car insurance, etc.
You have to admit it would be tight.

It would be tight because one medical or house emergency and you are toast.

The school sports would be free and really you should drop the travel stuff for kids anyway - school sports should be enough.

Also - with that home equity you are getting zero FA for college. So - I'd save it for college unless you do get significant FA. How smart are your kids?

You have to realize that many of the people with kids at those schools have incomes in excess of 500k at least.

Even without home equity, and even with three kids in college and/or private schools, a family with a HHI of $350K will get zero FA for college.

Not if all 3 are in college at once they will get something

[Anonymous]

Anonymous wrote:OP here.
The home equity thing is frustrating.

Obviously, it's part of our financial picture and at some point in our lives it may turn into cash (not a guarantee but it MAY). So I get that it's considered an asset.

But it's not a secure asset. It's not cash now. It MAY turn into cash some day.

And would anyone in their right mind actually USE home equity (and pay interest on it) to pay for private school? Baring some sort of real extenuating circumstance (kid is floundering and NEEDS to attend private in which case I understand it), it seems like an incredibly foolish thing to do.

Could be cash if you sold and moved to a less expensive house.

[Anonymous]

Anonymous wrote:OP here.
$350K is 2 full time incomes. One fed, one not.
No debt outside of mortgage.
$700K equity (we scrimped and saved for a very large ~$400k downpayment out of grad school--I'm talking we saved $100K a year while making $160K.... for 4 years we lived in an efficiency, never ate out and never traveled while making $170K while saving every spare dime. The rest of our equity is appreciation.
One car--a 2011 Honda van.
$350k income is only past 2 years.

I'm guessing the equity will kill us. Which sucks because we have it because we saved it with blood, sweat and tears. And who in their right mind would pull equity out of their house to pay for tuition? (baring some situation with a special needs kid or similar who REALLY needs private school in which case I would probably re-mortgage my house or do whatever it took) But I totally get that's it's not fair to ask others to pay for our kids if we have the equity...
We're definitely in the "donut hole". $126K post-tax income is an insane expense for school on $350K. Our local public high school is going down the tubes (we use the elementary and middle schools). This is not some "we only want our children to have the very best and we deserve private school" situation--rather, I'm just trying to get my kids a decent high school education. I also realize that there are cheaper options (like Catholic schools).
Again, just wondering what the facts are for the big DC privates.
Thx.

With 700K in equity, and 350K income, you've got the option to move to a better school district, something that many of the families who are traditionally helped by financial aid can't do.

[Anonymous]

I don't care how hard you scrimped for that equity. Move to an apartment and send your kid to private school.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here.
$350K is 2 full time incomes. One fed, one not.
No debt outside of mortgage.
$700K equity (we scrimped and saved for a very large ~$400k downpayment out of grad school--I'm talking we saved $100K a year while making $160K.... for 4 years we lived in an efficiency, never ate out and never traveled while making $170K while saving every spare dime. The rest of our equity is appreciation.
One car--a 2011 Honda van.
$350k income is only past 2 years.

I'm guessing the equity will kill us. Which sucks because we have it because we saved it with blood, sweat and tears. And who in their right mind would pull equity out of their house to pay for tuition? (baring some situation with a special needs kid or similar who REALLY needs private school in which case I would probably re-mortgage my house or do whatever it took) But I totally get that's it's not fair to ask others to pay for our kids if we have the equity...
We're definitely in the "donut hole". $126K post-tax income is an insane expense for school on $350K. Our local public high school is going down the tubes (we use the elementary and middle schools). This is not some "we only want our children to have the very best and we deserve private school" situation--rather, I'm just trying to get my kids a decent high school education. I also realize that there are cheaper options (like Catholic schools).
Again, just wondering what the facts are for the big DC privates.
Thx.

You will also have to provide a list of expenses such as what you spend on vacation, extra curricular, sports and gym memberships, club memberships, etc.

What kind of a car you drive, etc

[Anonymous]

Anonymous wrote:I don't care how hard you scrimped for that equity. Move to an apartment and send your kid to private school.

+1. As if scrimping and saving and making a windfall from it is some how not counted as income. Sorry, my full pay tuiton should not finance your nest egg.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sounds like you are overspending.

No, we're currently saving.
But let's say a tuition bill of $126k a year.

$350K
-$36K (401K)
-105K (taxes we pay between federal and state)
-$48K ($3150 total house payment plus I'm rounding up all house-related expenses to $4K a month--expected repairs/utilities--etc).
-126K tuition.
-$5K health insurance premium.

$2500 a month. Could you raise 3 kids in DC on that? (ALL expenses either than housing. Yes, of course it could be done... It's done by MANY people in DC all the time). But that $2500 would cover ALL food, cleaning supplies, clothing, any school or after school/sports activities for 3 high school kids, college savings, travel, medical copays and costs, gas, life insurance, cell phones, TV, car insurance, etc.
You have to admit it would be tight.

It would be tight because one medical or house emergency and you are toast.

The school sports would be free and really you should drop the travel stuff for kids anyway - school sports should be enough.

Also - with that home equity you are getting zero FA for college. So - I'd save it for college unless you do get significant FA. How smart are your kids?

You have to realize that many of the people with kids at those schools have incomes in excess of 500k at least.

Even without home equity, and even with three kids in college and/or private schools, a family with a HHI of $350K will get zero FA for college.

Not if all 3 are in college at once they will get something

I can tell you from personal experience that they will not.

[Anonymous]

Anonymous wrote:The private school system is regressive. It works fine for the wealthy and the poor that are able to get FA. The ones of us that are in the middle are shut out. It's unfair, I think... but that's life...

Same goes for highly ranked colleges and universities.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The private school system is regressive. It works fine for the wealthy and the poor that are able to get FA. The ones of us that are in the middle are shut out. It's unfair, I think... but that's life...

Same goes for highly ranked colleges and universities.

At $350k, OP is not "in the middle." She just can't afford a nice house in an expensive neighborhood in the DC area plus send 3 kids to private school without feeling a pinch. My heart bleeds.

We have about the same HHI OP. We live in a small old house that will be paid off soon, and sock all our savings into retirement and college funds. We bought in a good school district because we knew we couldn't swing $40k per year per kid for 12 years. My parents were genuinely middle class and took out a second mortgage to send me and my brothers to college. I wouldn't dream of expecting financial aid for private school while I sat on $700k in home equity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The private school system is regressive. It works fine for the wealthy and the poor that are able to get FA. The ones of us that are in the middle are shut out. It's unfair, I think... but that's life...

Same goes for highly ranked colleges and universities.

At $350k, OP is not "in the middle." She just can't afford a nice house in an expensive neighborhood in the DC area plus send 3 kids to private school without feeling a pinch. My heart bleeds.

We have about the same HHI OP. We live in a small old house that will be paid off soon, and sock all our savings into retirement and college funds. We bought in a good school district because we knew we couldn't swing $40k per year per kid for 12 years. My parents were genuinely middle class and took out a second mortgage to send me and my brothers to college. I wouldn't dream of expecting financial aid for private school while I sat on $700k in home equity.

THANK YOU. This poster nailed it.

[Anonymous]

You will not and should not get financial aid. Period. Other families contributing to the school for financial aid programs are not giving to the school for you to maintain your lifestyle. Emblematic of everything that is now wrong with this area and this country. Disgusting.

[Anonymous]

[quote=Anonymous]You will not and should not get financial aid. Period. Other families contributing to the school for financial aid programs are not giving to the school for you to maintain your lifestyle. Emblematic of everything that is now wrong with this area and this country. Disgusting.[/quote]

X1000. We cut things out and make sacrifices to send kids to private school - if you don't want to touch your equity please don't expect other people who make/have less than you and pay full freight to subsudize your tuition.

[Anonymous]

$650k HHI but a large portion goes directly into DH's retirement account and we can't use it. We happily take the 10% we get from one of the Big 3.