financial aid at our Big3 is a farce

[Anonymous]

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

So what do you bring?

Interesting. So not only do hooks get you in, they also get you financial “aid”?

[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.

OP I feel your frustration sometimes. There is a family at our school that belongs to one of the big country clubs that for years summered out of town for a good month and both do not work and they have been getting financial aid for many years. The school wonders why they’re having a hard time getting people to donate to the Annual Fund. This is the reason why some people would rather hold onto their money then donate to help supplement someone’s lifestyle that they can’t afford.

[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.

OP I feel your frustration sometimes. There is a family at our school that belongs to one of the big country clubs that for years summered out of town for a good month and both do not work and they have been getting financial aid for many years. The school wonders why they’re having a hard time getting people to donate to the Annual Fund. This is the reason why some people would rather hold onto their money then donate to help supplement someone’s lifestyle that they can’t afford.

One works one doesn’t and the kids are old enough that they don’t need care.

[Anonymous]

I think I believe OP.
The process is totally opaque and intentionally constructed to allow flexibility, discrimination, and nepotism.

In my observation, families of former Heads of School/School Leadership definitely get preferential treatment. I'm friendly with some and they all get FA well beyond what they would get if based on a formula based on income.

If they want to give you $ they can.

[Anonymous]

Such a staggering sense of entitlement on this thread.

[Anonymous]

Why do people feel entitled to get any financial aid to go to a private school? It’s a luxury. Nobody gives financial aid to pay for other luxuries like a fancy car or a country club.

[Anonymous]

I hate the way FA plays out at these schools. We know many families where there is a SAHM making no income, but she is fully educated and capable of working. But because there's just one income, they get FA. Meanwhile, we both work, and don't see the kids as much, and don't qualify 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.

This is outright tax fraud. If the IRS found it, there would be a criminal prosecution.

[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.

Tell the school that you are no longer donating and cite this as the example for why you don't feel they are using your donations appropriately.

[Anonymous]

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.

When I applied for FA, we had to share what year and kind of car we had. Boats, houses, etc.

[Anonymous]

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

Gosh, we make less than that and I would have LOVED to pay only 50%. They gave us $5,000 and it was not guaranteed for four years. Since a middle school had pulled that trick of giving money the first year and not the second, I decided not to risk it—plus it wasn’t enough money. If I can afford 35k, then what’s another 5k?

[Anonymous]

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

Gosh, we make less than that and I would have LOVED to pay only 50%. They gave us $5,000 and it was not guaranteed for four years. Since a middle school had pulled that trick of giving money the first year and not the second, I decided not to risk it—plus it wasn’t enough money. If I can afford 35k, then what’s another 5k?

at 160k, you're looking at 100k after taxes another 35k and you're down to 65k for everything else (and you say you make less). There is no way you are saving for retirement and saving for college (they won't care that you've waisted 35k a year on private) let alone paying the other expenses that come with enjoying life.

[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

Gosh, we make less than that and I would have LOVED to pay only 50%. They gave us $5,000 and it was not guaranteed for four years. Since a middle school had pulled that trick of giving money the first year and not the second, I decided not to risk it—plus it wasn’t enough money. If I can afford 35k, then what’s another 5k?

at 160k, you're looking at 100k after taxes another 35k and you're down to 65k for everything else (and you say you make less). There is no way you are saving for retirement and saving for college (they won't care that you've waisted 35k a year on private) let alone paying the other expenses that come with enjoying life.

Even if your mortgage is $2K a month, that's $24K a year plus another few thousand for utilities. And, that's just for one child. The only way you could do it is to have yoru house paid off.

[Anonymous]

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

Gosh, we make less than that and I would have LOVED to pay only 50%. They gave us $5,000 and it was not guaranteed for four years. Since a middle school had pulled that trick of giving money the first year and not the second, I decided not to risk it—plus it wasn’t enough money. If I can afford 35k, then what’s another 5k?

I sense there is something you are not telling us. Why would the middle school cut off your FA?

[Anonymous]

STA does this all the time. One way they do it is the Skip Grant program.