At what income are you unlikely to get any aid?

[Anonymous]

The aid formula seems to penalize people who save $ in 529s instead of putting the money into a nicer home for themselves.

[Anonymous]

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Anonymous wrote:This is a myth, from what I've seen... Not even close to true.>

Some schools have a higher limit for financial aid, most families with $150k and under with average assets and liabilities get a full ride.

For those with high incomes ($200k and above) and say you got need-based aid, could you please name the schools and amount? Our experience is similar to the $145k income family who got nothing. In our case, we sacrificed to save $ for 3 kids in 529s, which hurt us with aid.
And to the person who suggested just shifting non-retirement money to retirement accounts... could you please help me follow what you mean? There are limits to the amount you can save in retirement accounts each year. If you missed the chance to contribute 5 years ago, you can't just go back and move non-retirement $ into a 401k or IRA now, right, so how could anyone simply move $ into retirement accts?

225k, Stanford, $23K financial aid

Didn't your assets play a role in the financial aid decision? Once we hit the $2M mark, all the NPCs showed zero need-based aid regardless of income.

Yes, but Stanford doesn't count home equity, which is our largest asset. Otherwise, we have modest savings, 529, and investments outside of retirement accounts. Nowhere near $2M. Didn't start making $150k+ until DC was in middle school. We can afford through 529 and cash flow about $45-50K per year and DC contributes $2-3K in non-tuition expenses via summer jobs.

Don't DC's earnings hurt you overall? The student's earnings are counted like 4x more than the families towards ability to pay. How does that factor in with your FA deal? Thanks

Maybe it did--I can't tell because DC had summer jobs (internships) in high school that were factored into the aid package and I have no way to compare no student income vs income. I know that FAFSA doesn't consider student income under a specific amount (I think that was $6800) but CSS does consider student income (is that the 4x?). I imagine that if DC had an FT summer job and made $10K+ then that would affect EFC. Parent expected contribution is listed separately from student expected contribution. DC's expected contribution from job, savings, etc. is $5100. We don't expect DC to cover the whole amount, but up to $3 seems reasonable. My husband wanted DC to have some skin in the game.

[Anonymous]

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Anonymous wrote:When many of you talk of "aid', you are talking about merit aid not financial aid.

When a private school's sticker price is $70k annually all in and you make $200k, $100k saved in 529 and your house is paid off, you may think you should get "financial aid" because $70k is a ridiculous amount of money and may put your other life goals in jeopardy.

It's a $70k Lexus vs the sensible RAV4. Both great cars, but you want the Lexus and you can't believe they aren't seeing your financial situation and giving you "financial aid". The EFC is right - you should be contributing 100%; you just may have to chose the RAV4.

Now "merit aid" - that's the adjustment you may or may not get because $70k is a ridiculous amount of money. It's the coupon code of higher education. You aren't getting the code because you can't afford it; it's making it seem reasonable and not putting your other financial goals in jeopardy.

I get so irked when people mix these types of aids. Financial aid is for families that can't genuinely pay an extra dollar more a year without going hungry or missing rent. Remember the median household income in Virginia is $58,000.

Signed,
Someone that works in higher education

As a donut hole family, the issue is why the families who can’t afford a car are given the Lexus for free, not just the sensible RAV4

The donut hole family stuff is non-sense. There is zero excuse for not saving on that income, especially with a paid off house.

Who has a paid off house while kids are still high school and college age?

Quiet family money.

Or people who did not overextend themselves with housing. I have 3 kids and 1250 sq feet. Paid off.