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

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[quote=Anonymous][quote=Anonymous]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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Interesting. What is the source of your knowledge if I may ask?  The NPC seem to be web applications that provide output to an input. They could probably be easily reverse-engineered, and I'd be surprised if no one has done that, but are the formulas published anywhere?

Second, are you saying that there's a cumulative/compounding effect from spending down savings over the 4 years, i.e., in year 1 you enter $65K in saving, then you spend that in year 1, and then you're considered to have saved $0 for year 2?  That would create perverse incentives, wouldn't it?
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