Reply to Did you folks not do ANY saving?

Forum Index » College and University Discussion

Reply to "Did you folks not do ANY saving?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]2. With the same income, the EFC won't be drastically different for the two families, as assets don't count as much as income, therefore their tuition shouldn't be drastically different. This will be less true for schools that use the CSS profile. 
3. Unless their income is extremely low, neither family will likely get much financial aid at all other than loans. Student loans come with a fairly high interest rate beyond the federal loans which total $27K for four years.[/quote]
Rational response.  We have been discussing just how much assets increase EFC. Please see posts above. Define drastically - is $40k over 4 years drastic in your opinion? Let's assume that both families wouldn't max out on tuition based on income and that any difference in COA is solely due to assets. Do we agree that there are income levels for which this is true.

Even if student loans come with a high interest rate, family Spender has the option to double-scrimping over the 4 years their kids are in college and a few years after and they'll still be ahead in QoL dollar years. Obviously, under a fair system, they shouldn't be.

The reason they are, btw, is that having no assets is taken as a proxy for having been [i]unable, rather than unwilling[/i] to save due to personal circumstances.[/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