Reply to Which private colleges have the best financial aid for donut hole families?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Out of curiosity, I typed my numbers into Rice's NPC ($180k HHI, $425k home equity, $80k cash, $170k nonretirement investments including $65k in a 529).   Student and Parent Contribution: $65,700.

I noticed that they don't ask separately for 529 and non-529 accounts. Apparently, they don't care since they want all my money anyway over 4 years. But at least they wouldn't make me take out a home equity loan.  Here's something!
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My question is, once you exhaust the 529 and cash, will you get aid? Does anyone know how this works?[/quote]

Not really.  As much as people like to say they're being penalized for having saved, the formulas are not that harsh.  Rule of thumb, at donut hole level, every extra dollar of savings raises tuition by 5%, every extra dollar of income raises tuition by 50%.  So if you spend down 65K in savings to pay for freshman year, possibly next year's calculation will go down by $3250.  But that's assuming income is level.  If that same year your income increases by $6500, it's a wash. 
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