Reply to When the reality of college cost hits. Cannot do dream school.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't believe you[/quote]

This is an odd post.[/quote]

Under the circumstances OP has described, I don't believe an Ivy would require the parents to pay 75k.  I just don't.  [/quote]

I’m actually with this person. All of the Ivies either exclude home equity or cap it at a low multiple of income when considering how much the parents have in assets. Most (all?) also take into account medical expenses not covered by insurance.

I ran the Columbia (who I think uses the highest multiple of income for home equity) NPC calculator quickly with the limited info OP provided and some generous assumptions and it only had a family contribution of $19k, with Columbia picking up $78k. There are some major assets missing from this story.[/quote]

I ran it again with even more generous (and probably unrealistic) assumptions and it spit out a family contribution of $29k with Columbia covering $68k. Something is missing here.[/quote]

Did op kid get into ivy or columbia? Why are you mentioning Columbia?[/quote]

Because, as stated before, Columbia is the harshest Ivy with regard to home equity. So if home equity is truly the problem, Columbia should spit out the least favorable number. Everywhere else would be better for a high home equity case. And yet the expected contribution from Columbia is still quite low.

Hence, there are missing assets from this story.[/quote]

harshest how? yale doesn't exclude any real estate, even primary. [/quote]

Yale is more opaque about how they calculate EFC. In any event, I ran the Yale NPC with $1.2 million in home equity and a handful of other assets and it still spit out a family contribution of $31k, with Yale covering $60k. Still something missing.[/quote]

on what income? I asked Yale about this and it's 1x income. also what did you put in as a "handful" of other assets. like what about the 529s for 3 kids. [/quote]

See, I believe Columbia is 2x income which I why I used that originally.

Assumptions for Yale were $200k income, $5k in interest/dividend income, $70k in checking/savings, $50k in investments, $50k additional in sibling assets, $5k in income and assets each for the student. $1.2 million in home equity as previously indicated. Seem like fairly generous assumptions.

Did the same for Cornell and it spit out $42k in contribution with the school covering $51k. Getting closer but still not  that close.[/quote]

Agree there are large missing assets to this story. Or. OP is a troll. 
[/quote]

I stated explicitly in my original post that my sister has a good deal of home equity but it's not about to sell her long time home to send her child to college. I think we can all agree that the middle class gets screwed in this process. Several other teachers have commented here in similar situations. You make too much for meaningful aid but not nearly enough that you can afford such a huge sticker price. And people should not have to sell their houses to send their kids to college. Which my sister is not going to do. My niece will probably end up at her state flagship and be fine. But that doesn't mean that it doesn't stink to have to tell your child that you cannot afford their dream college after they work their butt off for years and years. Can't we all agree on that? [/quote]

I think most people can agree with that. But the point of some of these comments is that the numbers don’t make sense based purely on what you described. $200k income and high home equity with sizable medical expenses mixed in (which are generally considered) doesn’t get you a $75k bill. So the point people are making is that there are some other assets somewhere. Whether these are easily usable for college is unknown but there is some part of the picture that is missing.[/quote]

Yup. I am another poster who believes the math just doesn't add up. This is a highly unusual situation and there must be other circumstances the OP is not disclosing, such as family inheritance, or other assets. Go and work the cost estimators for the ivy schools or top SLAC and they are far more generous. The FA scenario described is more common for a decent but not top dream school. [/quote]

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