At what income are you unlikely to get any aid?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Our HHI is $145K, but we have $350K in savings outside of retirement accounts. Three years ago, we were denied any aid at every private college including Yale. The FAFSA said we could pay $59K. Ha. Ha. Ha. We're very close to retirement too.
Our youngest child is going in-state with merit aid and a bunch of scholarships. We would not allow DC to apply to any private colleges because even with merit, in-state would always be cheaper.
I really don't get what "qualifies" you for FA, especially at very wealthy colleges (think Northwestern, HYPSM, Haverford, etc.). We're middle class, live in a small house, drive old cars, live frugally. Why should we spend most of our savings to send our DC to a fancy private college? Why do the colleges think this is reasonable? We'd be crazy to do so, especially so near to retirement. It would be irresponsible of us to spend down our rainy-day fund. What if one of us gets laid off? We'd have no savings to fall back on.
Thank God for in-state colleges!!!

Are you self employed? Otherwise, I can't explain Yale. My kid is in another T10 school which doesn't count home equity, and our EFC from FAFSA was also $59K. This is about what we are paying, so about $20K FA, no loans.

Not self employed, but can't pay $59K. In-state is about $19K with merit and scholarships. Yale gave us nothing three years ago, but we only had one kid in college. Now we'll have two. No mortgage, as we inherited our house, so maybe that's why we got no FA. But that's crazy too. We're supposed to mortgage our house to pay for our kid to go to college right before we retire?

The whole system is broken for middle class people like us.

I may be mistaken but believe there was either a new law or rulemaking that no longer takes the number of kids into account when figuring out EFC.

That is true for FAFSA (thanks Lamar Alexander), but not necessarily for CSS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

dvandivier wrote:If significant amount in savings (outside of retirement), it almost doesn't seem to matter the income (either/or).

+1

It doesn’t take much
1 million => 56k EFC

That’s a lot of money to have outside of college funds and retirement.

Not if you are older parents and very close to retirement

It’s outside of retirement!

Parents need to plan ahead. Schools look to prior prior year income, so plan 2 years ahead. OP should have moved the money around, moved to a retirement account... May sound shady, but kids are affected by poor financial planning.

[Anonymous]

Over 100k HHI need not apply to FASFA unless you need the standard $5500 loan or the school requires it.

Financial aid is really for families under 75k.

[Anonymous]

When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

[Anonymous]

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

As a donut hole family, the issue is why the families who can’t afford a car are given the Lexus for free, not just the sensible RAV4

[Anonymous]

Anonymous wrote:

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

As a donut hole family, the issue is why the families who can’t afford a car are given the Lexus for free, not just the sensible RAV4

The donut hole family stuff is non-sense. There is zero excuse for not saving on that income, especially with a paid off house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

As a donut hole family, the issue is why the families who can’t afford a car are given the Lexus for free, not just the sensible RAV4

The donut hole family stuff is non-sense. There is zero excuse for not saving on that income, especially with a paid off house.

The donut hole family never mentioned their income or if their house was paid off.

At what income is there "zero excuse" for not saving? And does it matter how many kids they have? Would you expect a family making $100,000 with 5 kids to save just as much as a family making $100,000 with just one child?

[Anonymous]

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

Thanks for explaining the scam. ALL universities - Public, Private, whatever are subsidized by us, the tax payer. All their income goes towards lining the pockets of their management and management suck-ups. Anything leftover is used to fancify the college - lazy river at LSU for example. Is it any wonder that fees just keeps going up? Remember, your tax subsidy goes to pay a portion some Dean at Harvard, eventhough your kid might never see the campus in his life! Instead of making college more affordable, they push this nonsense about "we meet demonstrated need" and "expected payment" and the idiot masses drink up that cool aid. Cut salaries, cut stupid spending and cut tuition.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

As a donut hole family, the issue is why the families who can’t afford a car are given the Lexus for free, not just the sensible RAV4

The donut hole family stuff is non-sense. There is zero excuse for not saving on that income, especially with a paid off house.

It never seems to take into account how long you’ve had that income, though. Everything is lining up for us that we will hit the donut hole right around college time. We didn’t have time to save because we didn’t have a high enough income before.

Our kid will be fine at a less expensive school, but it’s weird to act as if everyone with a certain income level has had 18 years to save at that income level.

[Anonymous]

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

Merit aid is a subset of financial aid as is need based aid.

It is also worth noting that for top tier schools (that require CSS), there is usually no merit, but need-based aid extends to far higher income levels than other school. FAFSA is an important first step with these schools, even if you don't qualify for grants at schools that only use FAFSA.

So, the same family making $120k annually may get nothing at one school (need based) and full tuition at another school (also need based). It's not so cut and dry.

Schools that do not use CSS will often have several tiers of merit aid options to try to sweeten the deal for decent to excellent students. Some of these are talent based.

All of this is financial aid.

--Someone else who works in higher ed

[Anonymous]

It is wonderful to be Asian-American. Knowing that the system is stacked against you (since you are neither the all-powerful White person, not the woefully underprivileged URM minority) for being an educated minority, we know that we are universally despised for not being downtrodden or White. So we start eating PBJ from the time we are born to save for college because if we give the Man any opportunity to Fux with us, he will.

Hopefully, one more generation of self-sacrifice and we will be in a place to be influential.

[Anonymous]

Anonymous wrote:If you make $300k and have some assets and no debt, don’t bother filling out FAFSA.

Still need fill in FAFSA as Merit base scholarship need FAFSA information.

[Anonymous]

This is a myth, from what I've seen... Not even close to true.>

Some schools have a higher limit for financial aid, most families with $150k and under with average assets and liabilities get a full ride.

For those with high incomes ($200k and above) and say you got need-based aid, could you please name the schools and amount? Our experience is similar to the $145k income family who got nothing. In our case, we sacrificed to save $ for 3 kids in 529s, which hurt us with aid.
And to the person who suggested just shifting non-retirement money to retirement accounts... could you please help me follow what you mean? There are limits to the amount you can save in retirement accounts each year. If you missed the chance to contribute 5 years ago, you can't just go back and move non-retirement $ into a 401k or IRA now, right, so how could anyone simply move $ into retirement accts?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

As a donut hole family, the issue is why the families who can’t afford a car are given the Lexus for free, not just the sensible RAV4

The donut hole family stuff is non-sense. There is zero excuse for not saving on that income, especially with a paid off house.

Who has a paid off house while kids are still high school and college age?

[Anonymous]

Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

Dear someone that works in higher education,

I hope you realize that many people are *not* mixing up the terms. It's just that some colleges merge the two: they give fake merit aid to kids who need financial aid. They require FAFSA to determine how much 'merit' to give or they use algorithms to determine how much of a 'discount' is likely to get a kid to attend (which is what you're referring to).

What you are talking about has two flavors: schools who want to attract students who would otherwise not want to attend and schools that offer a fake discount scholarship to almost everyone.

Signed,
Parent who paid for over 15 straight years of college