Reply to Do families with $250K in income get financial aid? If not, how do they afford college?

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Reply to "Do families with $250K in income get financial aid? If not, how do they afford college?"

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[quote=Anonymous][quote=Anonymous]Can we just agree that paying for college and the process to qualify for financial aid is one of, if not the most, effed up processes in America? Why are retirement assets not counted? If person 1 has HHI of $150k has the ability to shelter all their savings of $1.5M in a 401k and IRA, Princeton costs almost nothing. Person 2 has that same $150k HHI, but the same savings of $1.5M are unsheltered. They are full pay. And lifetime spending/saving choices with the same income have dramatically different financial aid outcomes, with savers being slaughtered. Spouse and I made peace with and accepted this insanity years ago. We have high income and good savings both in and out of retirement funds. We could do a fully pay private but have long tried to educate DS on the college value proposition. DS will attend UMD this Fall.  [/quote]

Retirement is NOT included because you CANNOT access them without a penalty.  And the system smartly realizes that we need people actually saving for retirement. The amount you can put into an IRA or 401 is "limited" yearly.  But you cannot access them nor should you.

And person 2 made a choice not to "shelter their savings in retirement"   IT was a choice.  Most making 150HHI have some form of 401K option available and everyone has an IRA available.

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