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, [b]with savers being slaughtered[/b]. 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]

That’s the exact opposite of this scenario. People who save [i]for retirement[/i] are the opposite of slaughtered. People who essentially keep a huge pile of cash around are expected to use it for college, yes. It’s not “sheltering”, it’s “saving responsibly”. If you have saved up $1.5 million because you really want that private jet or whatever, yes you should use that money to educate your child. If you have saved up $1.5 million so that you won’t be eating cat food when you retire, you are not expected to use that money. Seems perfectly fair to me.

I don’t know why on earth your theoretical person has no retirement savings and $1.5m lying around much as that choice has tax implications, it also has financial aid implications.[/quote]

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