Reply to FA Question: Inherited house, now worth $1M, now what?

Forum Index » College and University Discussion

Reply to "FA Question: Inherited house, now worth $1M, now what? "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]It's hilarious that people here are telling the OP she doesn't deserve financial aid. I think most of the NESCAC schools will disagree. Clearly few people here understand how financial aid works.

No matter what form the school uses, financial aid is based predominantly on family income and savings/investments that are in the **student's** name. Parent savings, investments, and real estate count much, much less.

OP, have you run the net price calculator on the websites of the schools your DD is interested in? I pulled up Middlebury's and plugged in some dummy numbers based on the info you provided: a HHI of $104k, a home value of $950k, mortgage of $0, and 4 children, with $10k in savings. Middlebury's net price calculator spit out the following:

Total cost in first year: $61,360

Expected family contribution: $11,358

Total financial need: $50,002

Estimated financial aid package: $50,002
-Middlebury scholarship: $45,202
-Student loan: $3,000
-Campus job: $1,800

OP, please run the net price calculators yourself. Likely your DD will qualify for significant financial aid at schools that pledge to meet full need. No college really expects you to sell the family home in order to pay for college.
[/quote]

This just blows me away.  I did it, and granted we have a good income (250K per year), but I was curious.  And they are saying that our expected famiy contribution is $59K per year.  How on earth do they figure that?!  (FWIW we do have a well funded 529 account, I'm just making this observation -- private college is impossible for many people who have decent incomes.)[/quote]

Here is how you do it:

1. Figure out how you would live if you made $191K. 
2. Live like that.
3. Use the rest of the money to pay for college.

It's fine if you don't want to live like you would have to live if you made $191K ( although I can assure you, that wouldn't be living in a box).  That just means that private college is less important to you than is living like someone who makes $250K.

If you are wealthy, every single one of these schools will expect you to either use savings or reduce your lifestyle. Do you really think that's unfair?[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics