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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]300k HHI- 10k with FA at 59K school. [/quote]

Why so much FA?? [/quote]

Our mortgage/HELOC extremely high. [/quote]

I don’t know of any FA formulas that take mortgage or HELOC into account. Most only look at income and assets and consider living expenses to be part of discretionary spending. If this person is telling the truth, their situation is unusual. [/quote]

Yes. I’m telling the truth. What you’re saying makes absolutely no sense. A mortgage is NOT discretionary. They take into account how much equity one has in their house in considering FA. Ours is a relatively new mortgage so not a lot of equity. People we know that are similarly situated get less because they can take money out of their house and pay for an education.

Bottom line, they have to look at [b]how much income is left after you pay all of your bills[/b] and if you have a high mortgage with little equity, your ability to pay tuition is significantly limited. [/quote]

Look, this is just 100% false. Who told you that? They absolutely do not care what your “bills” are. Not what your mortgage is, or your car payment, or anything else like that. They generally take into account medical debt and student debt but [b]not[/b] consumer debt. They don’t give you more FA because you bought a huge house or have an immense car note.  They do take equity into account because it’s considered an asset. It’s income and a percentage of assets, minus the above mentioned debt and any extraordinary expenses (i.e. supporting family, medical expenses, etc).  Then they subtract a living allowance - which is the SAME AMOUNT whether you personally choose to live in a shack or a mansion and is usually determined by metro area - and then a percentage of what is left (discretionary) is your EFC.

I’m harping on this because it’s stunning how many people misunderstand how FA is allocated. 
[/quote]

Any sense of how much that living allowance is in the DC area?
.
Also, why does the FA app ask all those questions about monthly spending and consumer debt if it doesnt matter? [/quote]

The poster is WRONG. Period. [/quote]

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