Reply to ok, don't crucify me.. question about financial aid.

Forum Index » Private & Independent Schools

Reply to "ok, don't crucify me.. question about financial aid. "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]If you don't plan on utilizing your public school system, sell the house and buy something for $700k cash.  It will be a perfectly serviceable home, and the schools will probably be atrocious.  But you don't care.

Now you have plenty left over to pay full fare, and you've kept your home equity.[/quote]

Their current home is only worth $350K and they owe $250K on it--how would they swing that? If they want to move, renting seems like the smartest thing to do short term. Rent inbound for a good public that you can stay at if you move within the city, and then look for a less expensive house that's not too far away.

Schools do count bonuses, as well as any income you're getting from stocks, in calculating your income. The way our school (and I think many others) work is that they base next year's financial aid on last year's income--so while they do ask you to predict next year's income and you are free to explain changes that may be coming (e.g., "we may not get the bonus next year"), that will help you most in aid the following year. One school stated pretty explicitly that if your income was variable, you were expected to set some aside in the good years to offset the lean years.

With three kids in school, it's definitely possible that PP may get some aid at the more expensive schools, though. [b]This doesn't read to me like a family living way above its means--on the contrary, a family making $340K[/b] in a $350K house is well within its means, even factoring in the current school tuition. [/quote]

But only $205k is base -- the rest ($135k) is bonus target, and it sounds like it is usually at least $100k.  That means they are paying nearly a quarter of their base comp for tuition and summer camp.  And they have $235k in student loans and credit card debt.  If they are making over $300k a year, why aren't they paying that down?  How is that not living above their means?

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics