Top Colleges Are Cheaper Than You Think (Unless You’re Rich)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Aren’t some if not all Ivies no-loan?

Not if you are "affluent."

"Why" do "you" put "affluent" in "quotes"?

Different poster from the pp who wrote that, but let's just say their definition of "affluent" is much different than my definition of affluent. For example, some schools include your home equity in the calculation, which you can't tap except by borrowing against it. Isn't that the same as taking out a loan?

[Anonymous]

Anonymous wrote:We're a two earner house, each making about 100K in the DC area. Modest suburban house, two cars purchased used. Thrifty but not penny pinching lifestyle. From a paying for college perspective, it almost seems like one of us should quit our job and be a stay at home parent. Am I missing something?

Respectfully, yes. You are in the top 5% of US earners.

https://statisticalatlas.com/United-States/Household-Income

I know you don't feel rich, but you are certainly affluent compared to the other applicants. These are the raw facts colleges have to deal with. 95% of their prospects earn less than you, and half earn less than 1/4. Yes it sucks but please tell me how else it could possibly be?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Aren’t some if not all Ivies no-loan?

Not if you are "affluent."

"Why" do "you" put "affluent" in "quotes"?

Different poster from the pp who wrote that, but let's just say their definition of "affluent" is much different than my definition of affluent. For example, some schools include your home equity in the calculation, which you can't tap except by borrowing against it. Isn't that the same as taking out a loan?

I know that many feel homes should be treated differently than other assets, and I believe at most schools they do not:

http://www.thecollegesolution.com/will-your-home-equity-hurt-financial-aid-chances/

key part:

Luckily, at most state and private colleges and universities, the equity in your primary home is a non-issue.

That’s because most schools only require families to complete the FAFSA (Free Application for Federal Student Aid) when applying for financial aid, which doesn’t even ask about your home equity.

There are just over 200 schools, however, that are quite interested in the value of your house and how these institutions treat home equity varies dramatically.

The schools in this category (nearly all private) include the nation’s most prestigious institutions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We're a two earner house, each making about 100K in the DC area. Modest suburban house, two cars purchased used. Thrifty but not penny pinching lifestyle. From a paying for college perspective, it almost seems like one of us should quit our job and be a stay at home parent. Am I missing something?

Respectfully, yes. You are in the top 5% of US earners.

https://statisticalatlas.com/United-States/Household-Income

I know you don't feel rich, but you are certainly affluent compared to the other applicants. These are the raw facts colleges have to deal with. 95% of their prospects earn less than you, and half earn less than 1/4. Yes it sucks but please tell me how else it could possibly be?

They could take into account the cost of living in the area in which you live. 100k here is not a lot of money. For those who earn 50% of this amount but live in Peoria (just an example), they may actually be better off.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Aren’t some if not all Ivies no-loan?

Not if you are "affluent."

"Why" do "you" put "affluent" in "quotes"?

Different poster from the pp who wrote that, but let's just say their definition of "affluent" is much different than my definition of affluent. For example, some schools include your home equity in the calculation, which you can't tap except by borrowing against it. Isn't that the same as taking out a loan?

I know that many feel homes should be treated differently than other assets, and I believe at most schools they do not:

http://www.thecollegesolution.com/will-your-home-equity-hurt-financial-aid-chances/

key part:

Luckily, at most state and private colleges and universities, the equity in your primary home is a non-issue.

That’s because most schools only require families to complete the FAFSA (Free Application for Federal Student Aid) when applying for financial aid, which doesn’t even ask about your home equity.

There are just over 200 schools, however, that are quite interested in the value of your house and how these institutions treat home equity varies dramatically.

The schools in this category (nearly all private) include the nation’s most prestigious institutions.

o.k., what about your 401K? You can't tap that either if you're under 59 and1/2 years old without a penalty. Why should they count that? It's not really a liquid asset.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're a two earner house, each making about 100K in the DC area. Modest suburban house, two cars purchased used. Thrifty but not penny pinching lifestyle. From a paying for college perspective, it almost seems like one of us should quit our job and be a stay at home parent. Am I missing something?

Respectfully, yes. You are in the top 5% of US earners.

https://statisticalatlas.com/United-States/Household-Income

I know you don't feel rich, but you are certainly affluent compared to the other applicants. These are the raw facts colleges have to deal with. 95% of their prospects earn less than you, and half earn less than 1/4. Yes it sucks but please tell me how else it could possibly be?

They could take into account the cost of living in the area in which you live. 100k here is not a lot of money. For those who earn 50% of this amount but live in Peoria (just an example), they may actually be better off.

Certainly some legitimacy to your point, but honestly, is seems like it would make a very marginal difference, particularly when you consider it is fewer than 5% of colleges that are affected.

[Anonymous]

Anonymous wrote:

o.k., what about your 401K? You can't tap that either if you're under 59 and1/2 years old without a penalty. Why should they count that? It's not really a liquid asset.

Are 401Ks counted?

A good type of asset to own when applying for financial aid is a retirement account such as an IRA or 401(k). These qualified retirement accounts, whether owned by you or by your child, are not counted at all in determining EFC for purposes of federal financial aid.

https://www.savingforcollege.com/financial_aid_basics/financial_aid_and_your_savings.php

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're a two earner house, each making about 100K in the DC area. Modest suburban house, two cars purchased used. Thrifty but not penny pinching lifestyle. From a paying for college perspective, it almost seems like one of us should quit our job and be a stay at home parent. Am I missing something?

Respectfully, yes. You are in the top 5% of US earners.

https://statisticalatlas.com/United-States/Household-Income

I know you don't feel rich, but you are certainly affluent compared to the other applicants. These are the raw facts colleges have to deal with. 95% of their prospects earn less than you, and half earn less than 1/4. Yes it sucks but please tell me how else it could possibly be?

They could take into account the cost of living in the area in which you live. 100k here is not a lot of money. For those who earn 50% of this amount but live in Peoria (just an example), they may actually be better off.

Certainly some legitimacy to your point, but honestly, is seems like it would make a very marginal difference, particularly when you consider it is fewer than 5% of colleges that are affected.

? what does this mean, fewer than 5% of the colleges are affected?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

o.k., what about your 401K? You can't tap that either if you're under 59 and1/2 years old without a penalty. Why should they count that? It's not really a liquid asset.

Are 401Ks counted?

A good type of asset to own when applying for financial aid is a retirement account such as an IRA or 401(k). These qualified retirement accounts, whether owned by you or by your child, are not counted at all in determining EFC for purposes of federal financial aid.

https://www.savingforcollege.com/financial_aid_basics/financial_aid_and_your_savings.php

I don't believe this for a second. Each school has it's own way of calculating. That link says home equity isn't counted either. Well that's false. It was definitely counted by the school DC is attending in the fall.

[Anonymous]

Anonymous wrote:

I don't believe this for a second. Each school has it's own way of calculating. That link says home equity isn't counted either. Well that's false. It was definitely counted by the school DC is attending in the fall.

Both the post and the link therein explain that it is around 200 colleges (out of 5000+ nationwide) that count home equity.

If home equity is a problem the the other 95% of colleges should be considered.

[Anonymous]

Anonymous wrote:

? what does this mean, fewer than 5% of the colleges are affected?

That less than 5% of colleges use home equity (the primary regional cost of living factor) in their financial aid calculations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Aren’t some if not all Ivies no-loan?

Not if you are "affluent."

"Why" do "you" put "affluent" in "quotes"?

Different poster from the pp who wrote that, but let's just say their definition of "affluent" is much different than my definition of affluent. For example, some schools include your home equity in the calculation, which you can't tap except by borrowing against it. Isn't that the same as taking out a loan?

PP who posted "affluent" in quotes.

Because yes, with a $200K HHI, we are affluent. I recognize that. I feel fortunate. We are privileged.

We are affluent, but not "affluent" as described in the piece OP posted, because we cannot pay full price for an elite college or university. It is not that paying would be "decidedly unpleasant"; it is that it would put our family and retirement at risk.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

I don't believe this for a second. Each school has it's own way of calculating. That link says home equity isn't counted either. Well that's false. It was definitely counted by the school DC is attending in the fall.

Both the post and the link therein explain that it is around 200 colleges (out of 5000+ nationwide) that count home equity.

If home equity is a problem the the other 95% of colleges should be considered.

Yeah, colleges are all fungible, right? Middle Tennessee State Univ. is just as good as Swarthmore.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

? what does this mean, fewer than 5% of the colleges are affected?

That less than 5% of colleges use home equity (the primary regional cost of living factor) in their financial aid calculations.

Were you the one above who said these included many or most of the best privates?

[Anonymous]

Anonymous wrote:

But I have to admit I don't understand why there is not a private school that tries to have state-school like tuition? Why don't any of the privates try to compete on cost?

The most elite private colleges don’t have to compete on cost; they could charge more than they do now and still fill their classes.

The lower ranked private schools DO compete on cost. Every single one of of privates my child applied to discounted/gave merit aid that was enough to make tuition, room and board total less than our in state flagship university (Illinois, notriously expensive in state tuition combined with extremely shaky state finances.)