Newly donut-hole family

[Anonymous]

Running the school calculators, based on our current income (260K), our child will not get any money until his brother enters college in 2 years. We have only made this income for 18 months, prior to that, (although 2 full time incomes, one was quite low because of family obligations) we were in the mid 100s Can we get this accounted for at all? Son is a jr with pretty perfect stats (but no real hook, just a well-rounded smart kids, like a lot of others).

I know how this post will come across to some people, but it seems to me like the expectation that we could have saved 70K for each year of school is based on the fact that we have made this for a significant amount of time, and I'm wondering if there is a way to counteract that. We are in our early 40s.

[Anonymous]

Anonymous wrote:Running the school calculators, based on our current income (260K), our child will not get any money until his brother enters college in 2 years. We have only made this income for 18 months, prior to that, (although 2 full time incomes, one was quite low because of family obligations) we were in the mid 100s Can we get this accounted for at all? Son is a jr with pretty perfect stats (but no real hook, just a well-rounded smart kids, like a lot of others).

I know how this post will come across to some people, but it seems to me like the expectation that we could have saved 70K for each year of school is based on the fact that we have made this for a significant amount of time, and I'm wondering if there is a way to counteract that. We are in our early 40s.

He might be able to get some merit aid, but the expectation will be that with an income of $260k/yr you should be able to cash flow most of the price tag. And it's true, too. If you live with the budget you had a couple of years ago, you can cash flow more than $70k/yr. It's obviously not painless but it's doable.

[Anonymous]

Agree with 15:18.

If you lived within your means when you were in the mid-100s, and haven't dramatically increased your COL, you can swing $60-70K per year, and your kid can take out $5000 in loans.

Merit aid is harder to come by at the most elite institutions, but if you go a rung "down" in terms of status or name recognition, you can get a lot.

Also consider state flagships that offer merit aid to strong out of state students.

[Anonymous]

The expectation seems to be that the cost will be paid out of some combination of income and assets. You ran NPCs at schools befitting your child's top stats, correct? (Just checking that you are referring to the meet-full-need schools with a reputation for being generous)

If the results of the Net Price Calculators are not affordable for you, your child might as well understand that right now, and change the perspective to look for merit. The nice thing about top stats is that it makes you eligible for big merit money elsewhere. There are private colleges where stats over the 75th percentile are more likely to get some of the competitive merit money that the colleges give away. And there are public colleges that give big automatic merit scholarships for high stats.

The list can contain a mix, schools that are reaches for all that you probably can't afford but are willing to let him try one or two (with the family understanding that the money fairy is not expected to appear, but with a plan to appeal an aid offer that matches what you are seeing from the NPC), schools that are reaches and matches for competitive merit, and schools that are safeties thanks to automatic merit.

[Anonymous]

Anonymous wrote:Running the school calculators, based on our current income (260K), our child will not get any money until his brother enters college in 2 years. We have only made this income for 18 months, prior to that, (although 2 full time incomes, one was quite low because of family obligations) we were in the mid 100s Can we get this accounted for at all? Son is a jr with pretty perfect stats (but no real hook, just a well-rounded smart kids, like a lot of others).

I know how this post will come across to some people, but it seems to me like the expectation that we could have saved 70K for each year of school is based on the fact that we have made this for a significant amount of time, and I'm wondering if there is a way to counteract that. We are in our early 40s.

We have two in college right now. Our HHI is around $200k they only qualify for the subsidized loans- no other aid. I doubt your children would qualify for much of anything. Since you have had such a dramatic increase in your income and are used to living on the lower one, it should be easy to save.

[Anonymous]

Yes, start the merit hunt. Definitely go visit Alabama, which has a reputation as having a lovely campus and an attractive honors college. Must visit!

[Anonymous]

NP. What is involved in appealing an aid offer. When would one do that and how?

[Anonymous]

Anonymous wrote:NP. What is involved in appealing an aid offer. When would one do that and how?

I do not know anyone in real life who did this with any success. I have only seen "success" stories on the anonymous internet.

[Anonymous]

Anonymous wrote:Running the school calculators, based on our current income (260K), our child will not get any money until his brother enters college in 2 years. We have only made this income for 18 months, prior to that, (although 2 full time incomes, one was quite low because of family obligations) we were in the mid 100s Can we get this accounted for at all? Son is a jr with pretty perfect stats (but no real hook, just a well-rounded smart kids, like a lot of others).

I know how this post will come across to some people, but it seems to me like the expectation that we could have saved 70K for each year of school is based on the fact that we have made this for a significant amount of time, and I'm wondering if there is a way to counteract that. We are in our early 40s.

How much do you have saved to date? How much equity in house? Do you have any investment accounts or second homes?

[Anonymous]

Why in the world would you expect to get financial aid when you make $260,000 a year???

[Anonymous]

That donut hole is bigger than you think it is....we are at your former lower income level and we are also in it.

The good news, as pointed out by others above, is that if you keep your spending levels at your pre-increase rate, you will be able to cover costs at the college of your child's choice.

If that is not feasible, start checking out schools that will offer merit. My high-stats ( over 1500 SAT and over 4.0 weighted GPA) child got merit offers from all 8 schools applied to (by choice, all small LACs)--in the 50-100 range of most rankings, but all great schools with a lot to offer.

Good for you for going in with your eyes open, so you can shape the college search accordingly. Good luck!

[Anonymous]

Anonymous wrote:NP. What is involved in appealing an aid offer. When would one do that and how?

I have 2 friends who have successfully secure more merit aid (in spring 2018 and 2019 respectively).

In both cases, they reached out to the admissions officer for their region, said that X school was the kid's first choice but there was a significantly better scholarship offer from Y school (which was an equally or better-ranked school and similar -- ie both LACs). X school asked for a copy of the offer from Y school be scanned and sent to them.

The merit offers were increased. $5k in one case and $15K in the other.

[Anonymous]

Anonymous wrote:Why in the world would you expect to get financial aid when you make $260,000 a year???

Most people don't have an extra $6,000/mo that they don't already have going towards something else. Being expected to come up with that kind of money is daunting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why in the world would you expect to get financial aid when you make $260,000 a year???

Most people don't have an extra $6,000/mo that they don't already have going towards something else. Being expected to come up with that kind of money is daunting.

Right, but she said their annual income jumped ~$100K in the last 18 months. So unless they went out and spent a LOT of money on new things ($$$ cars they didn't pay cash for, a new larger home w/a new larger mortgage) it shouldn't hurt that much.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why in the world would you expect to get financial aid when you make $260,000 a year???

Most people don't have an extra $6,000/mo that they don't already have going towards something else. Being expected to come up with that kind of money is daunting.

Most people don’t need to pay $70,000 a year for a kid to go to college either. There are plenty of less expensive options.