FAFSA - is middle-class waste time applying?
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Anonymous
| HHI $240k, when 2nd started college this fall, and we had two attending, and the combined cost was $117k for the year (will go up in future years), we thought for sure they would receive some need based aid. l completed the FAFSA last October. NOPE. Neither of them received any need based aid |
Anonymous
My junior has similar stats to your second kid. Mind sharing where we should look for merit? |
Anonymous
I think their point way that at 150k you will get gobs of need based aid and at 350k you'll get nothing . |
Anonymous
If you have a great, practical, sane kid who got into a great school, pause the retirement deduction. Financial advisors promote oversaving for retirement because the make money on sales commissions and asset-based fees. They don’t make anything from educating your kid. A successful kid who loves you is a much better investment than a mutual fund. |
Anonymous
Why doesn't somebody provide a damn link of the schools that REQUIRE FAFSA or CSS for MERIT AID (not need based financial aid)? You are disclosing a ton of private financial information if you aren't going to get it anyway AND most schools are 'need aware'. The donut holes get screwed with 'need aware'. If you indicate you are applying for need-based aid, they are more likely to take a kid that isn't (unless it's a poor, first gen needy kid) because its about yield. They know a lot of those families won't cough up the $85-90k year if accepted without any $ so they won't yield. They want kids that will accept. |
Anonymous
^^ and I was told this happens at even the schools that claim to be 'need blind'--once the applications come out of committee. Who knows? |
Anonymous
We filled out a FAFSA, and DC applied to several expensive colleges - around $80K/year. Our HHI is about $300K. We got zilch. EFC was like $120K per year. Good luck. |
Anonymous
Our HHI is about $225 and we also got zilch. But this was expected, sadly, so no one with $300K should be surprised by that result, especially since that HHI easily puts you in the top 10 percent nationally of earners. |
Anonymous
$300k puts you in a 30% combined tax bracket if you live in MD, about 27% in VA. Don't forget, SALT deductions are limited, so you will probably take the standard deduction. If you are 50+, you want to max out your 401k contribution and add the catch up extra $7500, which brings it to like $30K per person. So, your income will look something like this: 1. 60K 401k (assuming both are 50+ and contributing the max, which you should at that income level) 2. taxes around $60K to $65K That leaves you with 300K - 120k = $180k. Let's say your annual expenses is something like $100K/yr in just expenses. You would have $80k left. But that just pays for room and board. Travel and other costs will rack up more. That's just one kid. Many of us have more than one kid who will be in college at the same time. You will also not have any wiggle room for large emergency expenses or even vacation. If your car breaks down (like ours just did), you'd have to get a loan at 6% to 7%. My DC is at the state flagship with some merit aid. We told this DC, who had super high stats, to not do ED at the expensive colleges. We cannot afford it, yes, even with $300K per year. It would leave us with so little wiggle room, that we'd be eating hand to mouth for the next 7 years -- we have two kids, and DH is 60. We have enough in the 529s for in state. That would barely cover 2 years of private. I think you are the one who needs a dose of reality. |
Anonymous
 My DC is at UMD with some merit aid, and with the amount of credits that transferred with the numerous AP classes, they will be able to graduate as a dual major with a +1 masters for probably close to $120k.
Do you have enough in the 529s, or are you going to cashflow it? That doesn't seem possible to cashflow have your income to pay for college. |
Anonymous
+ 1 million |
Anonymous
+1. The only schools that I know that require FAFSA for a just of few of their merit based scholarships are Fordham and Villanova. I would love to see some of the "file the FAFSA" boosters provide some links to actual MERIT scholarships or schools that say they require the FAFSA or CSS to be considered for merit awards. Those links would really do this debate a service but those FAFSA boosters never provide any links or name any schools. |
Anonymous
Well, “that’s life in the big city” as my elementary teacher used to say when folks missed the forest for the trees. |
Anonymous
So many Americans would be thrilled to be able to get medical and retirement through an employer, even as a deduction. |
Anonymous
NP: I personally wouldn't pay $80K for college--don't think it is worth it for 99% of colleges; however, your analysis leaves out any savings (for emergencies, etc.) and a 529 or investments/assets that could be used to pay for college. Your assumption is that the family is cashflowing the entire cost per year. I also wouldn't max out 401k for 4-5 years while 1-2 kids are in college if your 401k is already at a healthy amount. |