financial aid at our Big3 is a farce

[Anonymous]

Anonymous wrote:

Anonymous wrote:What's the school, OP?

Is that STA?

If this is NCS, I’d totally be interested!

[Anonymous]

Anonymous wrote:

Anonymous wrote:What's the school, OP?

Is that STA?

Yes, it's STA.

[Anonymous]

HHI doesn’t seem to be the only factor in the financial aid picture. Just to put another perspective here, We’re 1st gen immigrants. We’re in our 40s and When we came to the USA few years back we started at near zero. We have a HHI > $300k but we both have to support our parents financially (they are more than 75% dependent on us). We decided to have 1 kid because we didn’t think we could afford another. We don’t drive fancy cars, we live in a townhome, we carry a significant mortgage. We are only just starting to build our retirement nest egg, and we haven’t saved for college. We did not qualify for any financial aid.

[Anonymous]

Anonymous wrote:HHI doesn’t seem to be the only factor in the financial aid picture. Just to put another perspective here, We’re 1st gen immigrants. We’re in our 40s and When we came to the USA few years back we started at near zero. We have a HHI > $300k but we both have to support our parents financially (they are more than 75% dependent on us). We decided to have 1 kid because we didn’t think we could afford another. We don’t drive fancy cars, we live in a townhome, we carry a significant mortgage. We are only just starting to build our retirement nest egg, and we haven’t saved for college. We did not qualify for any financial aid.

What school?

[Anonymous]

Anonymous wrote:HHI doesn’t seem to be the only factor in the financial aid picture. Just to put another perspective here, We’re 1st gen immigrants. We’re in our 40s and When we came to the USA few years back we started at near zero. We have a HHI > $300k but we both have to support our parents financially (they are more than 75% dependent on us). We decided to have 1 kid because we didn’t think we could afford another. We don’t drive fancy cars, we live in a townhome, we carry a significant mortgage. We are only just starting to build our retirement nest egg, and we haven’t saved for college. We did not qualify for any financial aid.

This is very similar to our profile.

[Anonymous]

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.

Just admitted for next year?

[Anonymous]

Anonymous wrote:STA will 100% do this. They will give aid to kids who don't qualify under the typical aid algorithm in order to get them to enroll. There have been kids posted about here on DCUM (by their parents) and kids I've known in real life. They make well over the traditional cut-offs but still get "aid". Sidwell likely does it as well. It's how they hook in some of the most desirable kids. 100%--it happens. And why should it not? It's not illegal. There is no accountability and ZERO transparency. Schools can do what they want and they do.

Given the high demand for places, what kinds of kids would STA or Sidwell offer financial aid to despite high parental income/net worth because they really wanted those kids? From what I can tell, most kids are a dime a dozen and the only ones that would stand out would be very famous parents (presidential kids, for example).

[Anonymous]

Anonymous wrote:

Anonymous wrote:STA will 100% do this. They will give aid to kids who don't qualify under the typical aid algorithm in order to get them to enroll. There have been kids posted about here on DCUM (by their parents) and kids I've known in real life. They make well over the traditional cut-offs but still get "aid". Sidwell likely does it as well. It's how they hook in some of the most desirable kids. 100%--it happens. And why should it not? It's not illegal. There is no accountability and ZERO transparency. Schools can do what they want and they do.

Given the high demand for places, what kinds of kids would STA or Sidwell offer financial aid to despite high parental income/net worth because they really wanted those kids? From what I can tell, most kids are a dime a dozen and the only ones that would stand out would be very famous parents (presidential kids, for example).

I do not believe they would give money to someone outside the parameters for FA.

[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.

Most of what you imagine in your spewed paragraph is actually illegal for charitable trusts and foundations. Some trusts may operate illegally until they are caught, but most don't.

[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.

You are talking about a trust fund, set up to support an individual, or perhaps an individual education trust fund. Those are taxable as gifts upon distribution. There are ways to avoid the tax to an individual, such as a minor child, but technically these trusts do have taxes involved. PP was spewing nonsense about Family Foundations and charitable trusts and none of it is accurate.

[Anonymous]

Anonymous wrote:STA will 100% do this. They will give aid to kids who don't qualify under the typical aid algorithm in order to get them to enroll. There have been kids posted about here on DCUM (by their parents) and kids I've known in real life. They make well over the traditional cut-offs but still get "aid". Sidwell likely does it as well. It's how they hook in some of the most desirable kids. 100%--it happens. And why should it not? It's not illegal. There is no accountability and ZERO transparency. Schools can do what they want and they do.

I have close friends who get significant "financial" aid at a big3. Parent's could easily afford cutting the check and did not apply for financial aid - but received a financial aid grant

[Anonymous]

Anonymous wrote:

Anonymous wrote:STA will 100% do this. They will give aid to kids who don't qualify under the typical aid algorithm in order to get them to enroll. There have been kids posted about here on DCUM (by their parents) and kids I've known in real life. They make well over the traditional cut-offs but still get "aid". Sidwell likely does it as well. It's how they hook in some of the most desirable kids. 100%--it happens. And why should it not? It's not illegal. There is no accountability and ZERO transparency. Schools can do what they want and they do.

I have close friends who get significant "financial" aid at a big3. Parent's could easily afford cutting the check and did not apply for financial aid - but received a financial aid grant

Schools can give aid to whomever they want but it would really irk me if someone was given aid without even applying. That is super shady.

[Anonymous]

Anonymous wrote:

Anonymous wrote:STA will 100% do this. They will give aid to kids who don't qualify under the typical aid algorithm in order to get them to enroll. There have been kids posted about here on DCUM (by their parents) and kids I've known in real life. They make well over the traditional cut-offs but still get "aid". Sidwell likely does it as well. It's how they hook in some of the most desirable kids. 100%--it happens. And why should it not? It's not illegal. There is no accountability and ZERO transparency. Schools can do what they want and they do.

Given the high demand for places, what kinds of kids would STA or Sidwell offer financial aid to despite high parental income/net worth because they really wanted those kids? From what I can tell, most kids are a dime a dozen and the only ones that would stand out would be very famous parents (presidential kids, for example).

This post has to be a troll because people who make 500K a year and own investment real estate on top of it just aren't the kind to try to dime a school to death OVER 1 KID

There is no pressure to do so

Conversely, plenty of parents in the 500K range would kill themselves to offer ANY upside for admission to STA- that WOULD NOT BE- penny pinching to try to get FA

The people I know at STA who get significant FA are single parents who make under 100K a year and have a really, really smart kid or a D1 level Athlete ( or a kid who is both )

[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.

Maybe apply for FA for your family next year?

[Anonymous]

If the school values you, you can get a great package.

So what do you bring?