$100,000 in debt?! Are my parents for real?

Colleges and Universities A-Z Northwestern University
1

<p>A couple of weeks ago I opened my email to very happily discover that I had been accepted at Northwestern University. This school has long been at the top of my college lists, and when I was first accepted I was overjoyed and decided that Northwestern would be the place I would be come fall. But when we got our financial aid offer we were very disappointed; the FAFSA had stated that our EFC was $63,000, and Northwestern's offer conformed to this estimate, offering no grants and only $5500 in Stafford loans. My parents have explained to me that although is income is not actually too high, they have been saving for college for me since I was born and so I have about $100,000 at my disposal reserved specifically for college. They also say that this is the reason I got pretty much no financial aid.</p>

<p>My parents already contacted Northwestern's financial aid office to try to appeal our aid offer, but the only addition they could work out is the opportunity for work-study. My main concerns are domestic. I understand that students often find the need to take out loans for their eductions, but when my parents sat down and talked with me about financing college, they told me that I would have to take out $80,000 to $100,000 in loans by the end of undergrad. These estimates seem extremely high to me. This is not, however, a complaint about Northwestern's financial aid. </p>

<p>My first question: Does this amount of debt sound normal for someone leaving Northwestern? And my second question: Doesn't an EFC of $63,000 mean that my parents have the means to pay $53,000 each year for college, or at least close to this figure? I would think that they would be able to pay at least more than half of our EFC without loans. I just want to know if what my parents say sounds reasonable. Thank you all for your help.</p>

2

<p>They may be able to pay the whole $100,000. They may not. I could not answer the question from the information you provided. Maybe they are saving for retirement.</p>

<p>Bottom line: I’d ask them directly if they can contribute.</p>

3

<p>“Doesn’t an EFC of $63,000 mean that my parents have the means to pay $53,000 each year for college, or at least close to this figure? I would think that they would be able to pay at least more than half of our EFC without loans. I just want to know if what my parents say sounds reasonable.”</p>

<p>I mean this nicely, but no one on this board is going to have a better handle on what your parents can afford than your parents! We don’t know their income, their debts, whether there are other children / dependents, whether there are medical issues, what they’ve saved in general (beyond the $100K you referenced). </p>

<p>Good luck though!</p>

4

<p>If they are saving for retirement, even though it may seem like they are doing it just for themselves but in a way, they are doing it for you because they don’t want to get to the point to ask you for help in the future. Financial security is the #1 priority for many people; we are at a very uncertain time and many rational people do get more conservative with finances.</p>

5

<p>Just because the EFC was $63,000 doesn’t mean your parents can actually pay that. My family’s EFC is way higher than our family can afford; my parents think that something is messed up with whatever formula FAFSA uses to calculate EFC.</p>