Anonymous
Post 10/31/2021 20:09     Subject: What money is fair game for financial aid?
Anonymous wrote:We have 2.5million in assets and close to retirement, you can say we have the money but it would be financially irresponsible to spend 40k for each of our 3 kids. However, the tops schools think we can afford to pay without aids based on our assets


You can "afford it" but you choose to have three kids and spend your money in other ways vs. saving. You should have considered this when you bought your house, vacations and all that stuff. So, your kids got to state school for take out loans. Or, other options. I don't get the three kid excuse. You should have stopped at two.
Anonymous
Post 10/31/2021 17:29     Subject: Re:What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:So, if I were to refi my house and spend the funds on something responsible, like necessary home improvements (HVAC update, bathroom & plumbing improvements) will that shield the equity money?

And who determines my equity anyhow? Does the school run a report on the likely current value of my house, which has increased a lot over the past few years? Or are they looking at the house value when I purchased it and the balance remaining on the mortgage? I bought my house about 5 years ago and my neighbor recently sold her house for $300K more than what I paid.


Your equity is based on how much money your house is worth today minus the amount you owe on your mortgage. It's pretty simple.

You can surely protect that equity by refinancing and spending the funds on home improvement. But you'll have less cash available to you should you want a HELOC for some reason. And if your house gets reevaluated, it won't help at all.


Does it make a difference if someone has $500k equity in. $2 million house versus $100k equity in a $400k house? Either way do school expect you to liquidate or take out loans to cover that expected equity contribution?


Many schools look at the equity relative to your income (to take into account middle class people who bought in an area that gentrified quickly) and/or exclude equity up to certain amount. So, it depends.
Anonymous
Post 10/31/2021 17:26     Subject: What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:
CSS schools can consider home equity and retirement accounts, the logic being that if you paid into both aggressively while not saving for school, that is a choice you made and you shouldn't be rewarded.

i agree that paying for college sucks, but financial aid is not for people with expensive houses and big retirement accounts. save for college or choose a less expensive way to get a college degree, i.e. dual credit, CC and then transfer to a local or nearby public U.


Sorry, but no. Whose high stats kid wants to go to CC??

This is an inhumane suggestion, like putting a gifted kid into a special needs classroom. Who would do that?



Poor high stats kids do it all the time, no big deal. Maybe not CC, but being a commuter student at the nearest state school is pretty common. This is what my brother and I did way back when.
Anonymous
Post 10/31/2021 17:25     Subject: Re:What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:So, if I were to refi my house and spend the funds on something responsible, like necessary home improvements (HVAC update, bathroom & plumbing improvements) will that shield the equity money?

And who determines my equity anyhow? Does the school run a report on the likely current value of my house, which has increased a lot over the past few years? Or are they looking at the house value when I purchased it and the balance remaining on the mortgage? I bought my house about 5 years ago and my neighbor recently sold her house for $300K more than what I paid.


Your equity is based on how much money your house is worth today minus the amount you owe on your mortgage. It's pretty simple.

You can surely protect that equity by refinancing and spending the funds on home improvement. But you'll have less cash available to you should you want a HELOC for some reason. And if your house gets reevaluated, it won't help at all.


Does it make a difference if someone has $500k equity in. $2 million house versus $100k equity in a $400k house? Either way do school expect you to liquidate or take out loans to cover that expected equity contribution?
Anonymous
Post 10/31/2021 17:22     Subject: What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I think the above math is off, elite colleges are 75/80k per year, not 40k so 3 kids would cost PP $960k right?


I assume their income is not super high, but they have significant assets, so the college calculators showed them paying $40K/year per kid net. Possibly that also includes some overlap where 2 kids attend college at the same time.

FWIW, we had about $250K HHI, and when we only had one kid in school we got nothing. However, when we had two in college, one of the top schools gave us $20K financial aid in grants, not loans. The younger kid is attending in-state, so our total costs were almost the same between one and two in college. That's why I don't believe in donut hole BS, there is no such thing for top schools.


NP- my kids are still young but I am trying to understand this.
For family with HHI 200-250K, one kid in top private college is 80K/yr, but say when younger kid also starts at an equally expensive private, then another 60K/yr (with 20k aid.) So total of 140K/yr for the overlapping years?


PP. I would expect at least $20K from the other school too, provided they are of the same rank. Other than that, I have no idea. Your best bet is to try a net cost calculator for e.g. Princeton and plug in two kids in college.
Anonymous
Post 10/31/2021 17:13     Subject: What money is fair game for financial aid?
Anonymous wrote:
CSS schools can consider home equity and retirement accounts, the logic being that if you paid into both aggressively while not saving for school, that is a choice you made and you shouldn't be rewarded.

i agree that paying for college sucks, but financial aid is not for people with expensive houses and big retirement accounts. save for college or choose a less expensive way to get a college degree, i.e. dual credit, CC and then transfer to a local or nearby public U.


Sorry, but no. Whose high stats kid wants to go to CC??

This is an inhumane suggestion, like putting a gifted kid into a special needs classroom. Who would do that?

Anonymous
Post 10/31/2021 17:12     Subject: Re:What money is fair game for financial aid?
Anonymous wrote:So, if I were to refi my house and spend the funds on something responsible, like necessary home improvements (HVAC update, bathroom & plumbing improvements) will that shield the equity money?

And who determines my equity anyhow? Does the school run a report on the likely current value of my house, which has increased a lot over the past few years? Or are they looking at the house value when I purchased it and the balance remaining on the mortgage? I bought my house about 5 years ago and my neighbor recently sold her house for $300K more than what I paid.


Your equity is based on how much money your house is worth today minus the amount you owe on your mortgage. It's pretty simple.

You can surely protect that equity by refinancing and spending the funds on home improvement. But you'll have less cash available to you should you want a HELOC for some reason. And if your house gets reevaluated, it won't help at all.



Anonymous
Post 10/31/2021 17:05     Subject: What money is fair game for financial aid?
Anonymous wrote:If your HHI is between $200,000 and $300,000 and you live in a major metropolitan area, plan to go in state. Otherwise you'll be transferring one-third of your net worth to some random college somewhere.


Our HHI is much lower, and we were told we need to transfer more than 50% of our savings/investments to a private college. We are not eligible for any form of FA, except loans.

Our kid is going in-state. There's no other possibility. She's not likely to get a full ride from a place like Duke or U Chicago despite her excellent stats. And merit from second tier LACs won't be enough to lower the cost of attendance to in-state rates, which aren't cheap, BTW!! Our in-state costs hover near $30K per year, which is double what my parents paid for me to attend an Ivy years ago. It's insane what college costs these days.
Anonymous
Post 10/31/2021 16:42     Subject: What money is fair game for financial aid?
Use the Net Price Calculator to see what each school shows you'll possibly be liable for.

It is pretty accurate. We did it for my son's #1 choice and it was fairly accurate. Total cost to attend for a semester was $41k and it had the parents & student liable for $36k. When all was said an done as far as scholarships and whatnot, it came out to be around $32k that was our responsibility.

I would never refinance my home for this. We too are going to use the house equity to move to a lower COL area once the youngest graduates high school. The kids know that they have small college funds and the rest is up to them.
Anonymous
Post 10/31/2021 16:19     Subject: What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:I think the above math is off, elite colleges are 75/80k per year, not 40k so 3 kids would cost PP $960k right?


I assume their income is not super high, but they have significant assets, so the college calculators showed them paying $40K/year per kid net. Possibly that also includes some overlap where 2 kids attend college at the same time.

FWIW, we had about $250K HHI, and when we only had one kid in school we got nothing. However, when we had two in college, one of the top schools gave us $20K financial aid in grants, not loans. The younger kid is attending in-state, so our total costs were almost the same between one and two in college. That's why I don't believe in donut hole BS, there is no such thing for top schools.


NP- my kids are still young but I am trying to understand this.
For family with HHI 200-250K, one kid in top private college is 80K/yr, but say when younger kid also starts at an equally expensive private, then another 60K/yr (with 20k aid.) So total of 140K/yr for the overlapping years?
Anonymous
Post 10/31/2021 15:36     Subject: What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:We have 2.5million in assets and close to retirement, you can say we have the money but it would be financially irresponsible to spend 40k for each of our 3 kids. However, the tops schools think we can afford to pay without aids based on our assets


You don't want to spend your money on it, and that is your right to choose not to.

But certainly you don't expect others to pay your bills simply because you don't want to, correct?


Our only realistic choice is in-state, that's what people here are saying, donut hole families can't afford these colleges, it not just that we don't want to, stop gaslighting us


First, you are using "gaslighting" completely incorrectly, you should google it and know what that means. Or just watch the classic film.

Just asking a question is not gaslighting. Try answering it. If the answer is "no, I don't expect others to pay my bills" then just say that, people will admire you for your values and your discipline in your decision.
Anonymous
Post 10/31/2021 14:55     Subject: What money is fair game for financial aid?
Anonymous wrote:I think the above math is off, elite colleges are 75/80k per year, not 40k so 3 kids would cost PP $960k right?


I assume their income is not super high, but they have significant assets, so the college calculators showed them paying $40K/year per kid net. Possibly that also includes some overlap where 2 kids attend college at the same time.

FWIW, we had about $250K HHI, and when we only had one kid in school we got nothing. However, when we had two in college, one of the top schools gave us $20K financial aid in grants, not loans. The younger kid is attending in-state, so our total costs were almost the same between one and two in college. That's why I don't believe in donut hole BS, there is no such thing for top schools.
Anonymous
Post 10/31/2021 14:45     Subject: What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:All these people saying to just save are not seeing the forest for the trees. The cost of college/university in this country is ridiculous. We have saved. And it’s never enough. Universities are still raising rates at a pace that makes attending a huge financial hurdle for all except the super rich. And universities aren’t spending the majority of funds on teachers/professors or cafeteria workers and custodians. Anyone who has looked at a university/college federal indirect rate knows that colleges are ripping us off first with tuition. And second as tax payers for the indirect charged on government grants. And then third when the products/drugs/products produced thru the tax payer funded research are sold to us at super high rates with profits going to the super rich.

This argument about saving just makes sure that we all fight amongst ourselves for the scraps thrown out the kitchen door, while the people at the very top sit down at the table and gorge themselves.


Exactly this. All of this.

We finger-point, blame, defend, etc. amongst ourselves on this thread but the root of the problem is systemic.


All of this may be true (And I happen to agree with it). But it doesn't really matter for people with kids going to college right now. Simply put, there isn't going to be the systemic change you advocate right now, or in the foreseeable future. SO all of this is yelling into the wind. The options are to choose a school you can pay for, or get some sort of aid. That's it.
Anonymous
Post 10/31/2021 14:40     Subject: What money is fair game for financial aid?
Anonymous wrote:
Anonymous wrote:We have 2.5million in assets and close to retirement, you can say we have the money but it would be financially irresponsible to spend 40k for each of our 3 kids. However, the tops schools think we can afford to pay without aids based on our assets


You don't want to spend your money on it, and that is your right to choose not to.

But certainly you don't expect others to pay your bills simply because you don't want to, correct?


Our only realistic choice is in-state, that's what people here are saying, donut hole families can't afford these colleges, it not just that we don't want to, stop gaslighting us
Anonymous
Post 10/31/2021 14:29     Subject: What money is fair game for financial aid?
Anonymous wrote:We have 2.5million in assets and close to retirement, you can say we have the money but it would be financially irresponsible to spend 40k for each of our 3 kids. However, the tops schools think we can afford to pay without aids based on our assets


You don't want to spend your money on it, and that is your right to choose not to.

But certainly you don't expect others to pay your bills simply because you don't want to, correct?