Reply to FA shouldn't go to people with 1 million dollar houses

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Sorry a home can be an asset just like anything else and yes someone with a million dollar home should be paying their own way firefighter or not.  Sorry.  I guess I'm selfish but this is the equivalent of someone pulling their money out of other assets and putting it completely into their home.  Is it okay if I have a 3 million home that I can barely make the mortgage payment?  Do I still desire aid?  This is the problem with determining there has to be an income and asset cut-off if not it rewards spenders and punishes savers.  In this case, just like in college you are usually expected to utilize the equity in your home because it is an asset.  Of course this is one of the issues of the housing crisis.  If private is worth then people will find a way to afford it.  Also I would rather put the aid to the truly needed.  Also, what prevents the firefighter the day after the last year of private school aid is awarded from cashing in an enjoying his equity?  Whether the fire fighter is trying to or not this is another way to game the system which why it really needs to be changed.[/quote]

PP here. In this scenario, it only rewards spenders if they paid $1 Million for the house.  I think you and I have a disconnect on what a "million dollar home" is and what taking equity is.  Just because some mortgage broker or tax assesor says my home is "worth" $1 million does not make it so - especially if I could not sell it for that.  Besides, just because I have a "million dollar home" does not mean I have a million dollar mortgage or can afford one. My mortgage could reflect what I actually paid for the house - $300K.  Cashing in an IRA is NOT the same as borrowing against your house.  "Cashing in on equity" means [b]borrowing[/b] against the equity in your house and the equity in your house is not hard money. That is all I am saying.

Well, having a kid in college, I can tell you that I was not "expected" to pull the equity out of my house in the FAFSA process.  I was given a "parent contribution" number and how I got there was my business.  [/quote]

Couldn't you just sell the house, buy one for $450K, pay the capital gains and bank the remainder for tuition.[/quote]

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