<p>*The fact that it’s from my family means I feel an obligation to put it toward what is most important, my daughter’s education. Me, meh! But my daughter–she’s everything to me.
*</p>
<p>Of course your D is everything to you. </p>
<p>But, please do NOT feel like you have to jeopardize your financial future for your D’s education. There’s no rule that family money/life insurance benefits are to spent on a child’s college education. That money is to provide for you. And, if you manage to live on the interest, then your D will inherit the rest. </p>
<p>If you aren’t able to return to work and replace that money, you will become a financial burden to your child. I’m sure you realize how that could negatively affect her future life with a husband. Do you want that to happen? </p>
<p>Right now, you’re overwhelmed because your D got an EA acceptance months ago and you all thought that everything was fine. Now you find out it’s not. You need to prepare for Plan B. Your D will be fine at a less expensive school. It doesn’t mean that you love her any less. In fact, by making sure that you’re not a financial burden to her in the future is a big gift.</p>
<p>I agree with the posts above. I have some experience with this school and I have heard that they are not the most generous even though they claim to meet full need. </p>
<p>I think you need to make it clear in this letter and to your daughter that the current financial aid offer is simply undoable-- because it is. You have a $30K/ year income and no job. Take out the grad school reference and the student contribution reference-- she does need to get a job. (Can she earn money tutoring while she looks for a job?) </p>
<p>By the way, is your daughter receiving social security? I wonder if that’s factored in as income on top of what you already posted. If so, I would be sure to tell them when her checks will stop.</p>
<p>Also, has your daughter been given financial aid awards from other schools? I wouldn’t hesitate to send them if they are better.</p>
<p>I wonder if by “meet all financial needs” the school meant what our son’s meant. FAFSA calculated our need as zero and we were “awarded” the entire COA in the federal subsized loan + unsubsidized parent loan. Lucky us! While we knew we were better off than many families, we certainly didn’t feel we were “awarded” anything. My husband had been out of work for nearly a year before filing the FAFSA (unfortunately, the no income period was split between two tax years) and we were not about to accept their generous award of more loans. Unlike OP we did have some college savings and have been able scrape together our son’s education expenses semester by semester with a bit of help from family. I hope the advice of the others brings you the financial aid you need.</p>
<p>44% of students at this school are given scholarships or grants and the average amount of institutional grant/scholarship money is $26248. The average net price for a family earning up to $30K is $8,330 and up to $48K is $11,587. I realize you have additional assets but I do think you need to press this issue. </p>
<p>I also wonder if the $30K includes social security income. You make it sound like you have $30K in interest income. Could they be adding social security in and coming up with a substantially higher figure? The asset protection for a single parent household is low and, with a family size of 2, you may indeed get a considerably higher number if the school is adding in another $20K+ in social security income.</p>
<p>Just stepping in to add that I would not reference an overseas senior trip in your letter–it suggests you have enough money for a costly extra. I also think the college will assume that since you no longer have to volunteer at your daughter’s school, you will be able to supplement your current income with some earnings–if that’s not the case–e.g., there is no market for your skills in your area–you should address that issue directly.</p>
<p>I would drop the paragraph that talks about not buying an updated wardrobe. Many parents are in that boat! It comes across a bit whiney (Sorry, because I hear your desperation). </p>
<p>I would copy the email to the president of the college with the note that you are building a highly unhappy opinion of this college and that you are asking for advice from an internet forum that serves parents nationwide. The advice you are receiving indicates that you have, indeed, been treated poorly and you would love to post that the challenges have been resolved. </p>
<p>Lastly, bite the bullet and have that hard conversation with your daughter. Go ahead and get out the tissues and cry for an hour or two. Then dig out the ice cream and say "OK, here’s what terrifies me (I’ll loose the house to get you through this college). Don’t tell her what she has to do. Tell her that you are working hard to get this to work and to get the college to meet its original promise. Meanwhile, you need her to open her heart and mind to some other paths, just in case this all falls in the toilet. Ask her to fill out the Bama application so you have a “life raft.”</p>
<p>I know you are heartsick. But at the end of the day, you have a very bright, healthy child. Trust that she will still love you despite this bump in the road. </p>
<p>Do tell her, also, that this may end up being a game of chicken. She may have to get to the point where she writes a long, sad letter about how badly she wanted to go to this college (enough to apply ED!) but now the failure of the fin aid department to live up to its word means she has to regretfully withdraw. You don’t want that letter to have to happen but it might come down to that. Start preparing D now so she is ready to lay down the law and not let these folks use her as a doormat. </p>
<p>I think she (not you – she) has strong grounds to complain loudly that she applied in good faith and believed the quotes she received AND that the college would certainly use her NMF status as part of future year recruiting. If this college engages in “Bait and Switch” tactics with its freshmen, it is not the kind of people she wants to hang with, no matter how cute the campus. </p>
<p>Good luck. Get ready to get tough – but that means holding back no secrets from D. She has to know the full story to navigate her future.</p>
<p>My daughter and I drew Social Security after my husband died; mine stopped when she turned 16 and hers will stop in a few months when she graduates from high school. Mine starts up again when I turn 60. It didn’t amount to much; it was my margin of comfort if I wanted to turn the heat up in the winter… (I’m from New England and it’s really hard for me to spend money.)</p>
<p>In a few weeks I turn 58 and don’t anticipate starting a job which would bring any sizable income. The nest egg I have will only shrink. I’d like to protect my funds for the next generation if it’s at all possible, and frankly for my own retirement years as well.</p>
<p>The figure I was given originally represents about 3% of my assets. This school, and the others we applied to, told me over the phone that they expect a contribution of about 3-5% of assets, so I thought we were in the right ballpark. </p>
<p>As for staying at the school for a salary, the school is strapped and most of the staff is paid in very little beyond good will; most of them are also putting kids through. There’s no salary to be anticipated there. Is there ever enough money for quality education these days?</p>
<p>One thing about my daughter is that she is fiercely self sufficient. She’s worked since she was 13, when she ran a small catering business. Now she works in a grocery store and plans to waitress over the summer. After college/grad school she will be earning top dollar in her field of foreign service (at least this is how our life dream plays out) and she’ll not have too much trouble paying off loans. It’s just that this amount is such a surprise and a shock.</p>
<p>In my letter I’ll take out references to the senior trip (how to explain that I won’t have internet access for ten days?) and the part about the student contribution. Also I’ll eliminate the references to grad school. It may give me more leverage if I don’t say that I’ll do whatever it takes to enroll her; but it’s hard to be dishonest. She really wants to go there.</p>
<p>I just got off the phone with my attorney (friend) who encouraged me to personalize this step of the process. Prior to now it’s all been numbers. I have to show that I’m willing to take on debt but not willing to accept the first figure.</p>
<p>Thanks everybody. This has been so, so helpful.</p>
<p>This is all a horrible scam. Why should two kids graduate from the same university, yet one owes 100k+, and the other owes nothing because their parents were underachievers. College would be more affordable if everyone paid the same price.</p>
<p>Please make it clear exactly when the social security will cease. Otherwise, they will consider it income. Do not mention when yours starts up-- that sounds like it will be a matter of your financial package in a few years and you can cross that bridge when you come to it.</p>
<p>Unfortunately, it IS all about the numbers, your family’s numbers – income and assets. And quite frankly, I’m confused about the math. If the college thinks you can afford $51k, then they have estimated your assets at a whole lot more than ~$300k; by my math, they are estimating your assets to be 2-3 times that amount. Has your mom’s house been sold?</p>
<p>The college (Georgetown?) has thousands of students literally praying to be accepted, and who will be happy to be full pay, particularly for SFS. GU does not care about NM status. I don’t believe that GU offers much merit money; the only ‘scholarships’ offered are athletic or special grants that reduce the self-help component of need-based aid. “Self-help” such as summer earnings is always part of the package.</p>
<p>“I had invested my funds with generous friends through promissory notes at 10% (this was generous 6 years ago and is unheard of now, so I am very lucky). this is completely and utterly safe. These people have my back and though it sounds naive I have no fears of losing this money.”</p>
<p>This worries me…I’m no financial whiz but are these just loans to friends? Can that be considered “investments”?</p>
<p>They are loans and investmentsin that they generate interest income. The interest doesn’t go up and down like it would in the stock market. I pay taxes on the interest and it is my only source of income.</p>
<p>regardless of what you call them, if they generate interest/dividend income to you, they are your assets. It is no different than if you had invested the money in stocks, a high interest CD, or rental property. Now they may be illiquid assets, but they are assets nonetheless. </p>
<p>In general, a college counts approximately 5.6% of your assets available for college expenses, and 45% of after-tax income above a certain threshold. Taking the $51k expected contribution, and dividing by 0.056, I back calculate an estimated $900k in assets. Does that seem about right? If not, you need to find out from the college what number they used and how they calculated it.</p>
<p>If you only have $300k in total assets, that would yield $16.8k in expected contribution. In addition to $300k in assets which generate income to you, what about your home equity? (Colleges also count that as a source of funds.)</p>
<p>I have heard of other people who get stuck between a rock and a hard place. One lady had inherited a family cabin. It was (and is) a modest place but it is in an area where prices have skyrocketed. On paper the lady has big assets. When her kid applied to college, that asset was absolutely counted. She was left with 1) sell the cabin and loose the place of great sentimental value and family history or 2) have the kid attend a cheaper school. The offspring chose #2 and enrolled in the local Community College. </p>
<p>What was important was that the parent and offspring worked through the choices and the kid made an informed choice. The parent did not impose the choice – it was a partnership in decision making. Either direction it was going to be painful, but the pair made the painful choice together. I see that family as people who are tough and capable and will succeed – and they are loving and mutually respectful as well. No one thinks less of the student for attending the CC. In fact, we all think highly of the character shown. </p>
<p>Please do not carry all this burden yourself. It is so hard to lay this out and be frank but navigating this together will help your kid be prepared for other hard choices that are sure to come in the years ahead. Talking about the family finances now will also help her if she should ever have to deal with your estate or decisions while you are hospitalized or otherwise out of the picture. </p>
<p>Please know that March/April can be horrible for lots of families. May to August sometimes drag on too – and then one gets to the campus and life picks up speed and new doors open. By Thanksgiving all of this will be in the rear view mirror (one way or the other). Hang in there.</p>
<p>I know this is horribly stressful. I would first find someone to check your email and your voice mail when you are gone; such as a friend or the attorney you mention. I am sure that one of the kids will have a laptop you can use and most hotels have internet/computer in the business center, or go to an internet cafe. DO NOT say you are away for 2 weeks with a senior trip!!!</p>
<p>Next.</p>
<p>Your letter needs to stick to facts and numbers – everyone knows your priority etc etc etc – the $81,000 figure is distracting; just say you worked at the school and they let your daughter attend for free-- financial aid has soo much to do with numbers! </p>
<p>I would state your AGI from your 1040 for 2010; I would explain how Social Security ends; I would explain my source of income; I would attach your husband’s death certificate and explain the life insurance policy money.<br>
I would explain that daughter works, her income, and her plan to work this summer to earn her contribution.</p>
<p>Thank them for their time, explain the phone call, and from now on, get the name of everyone you talk to in that office.</p>
<hr>
<p>Personally, I love the suggestion to apply to Bama because I think attending a large Southern university is a great experience. I would be very happy if my child could get a full ride to Bama. It is not as though your daughter does not have any options, thank goodness.</p>
<hr>
<p>I also think you need to stick to facts as much as possible because the whole “investment with friends” story sounds a little odd. (Is there a written agreement?) </p>
<p>My math is the same as Bluebayou’s – something doesn’t add up.</p>
<p>My advice is to call back the financial aid department and ask to speak with a senior level staff member. ASK them how they calculated your expected contribution – you need to figure out how they did the math leading up to their current conclusion.</p>
<p>Then, you need to focus on the specific – are they attributing assets to you that you don’t have? Or a value to assets that doesn’t exist? Many so-called 100% need schools are very formulaic – so the FIRST step in dealing with them is to figure out if any of their numbers going in are wrong, and address those before you move into seeking sympathy for your plight. (The sympathy angle, in financial aid speak, is to ask them to use professional judgment to make adjustments in your favor – but start with the objective stuff.)</p>
<p>THEN - please have your daughter contact those colleges where she turned down the awards, and ask if she can reactivate her application and still get the awards. Do it NOW, before the end of the admission season on March 30th. </p>
<p>Finally – as difficult as it is, you can NOT have your daughter attend a school you cannot afford. Your daughter will not be able to pursue her career aspirations if her mother is destitute when she graduates. If this school doesn’t work out there are others. There are no high-paying job in foreign service/international field without a graduate level degree, which means that long term the university that counts for her career will be the one that awards her a Masters, Ph.D, or other advanced degree; there are also very limited opportunities for funding for the work toward the graduate degree.</p>
<p>Could they be considering the HS tuition as a form of income since technically you worked in exchange for it? Could the college consider the tuition a gift (that would be taxable or at least a portion of it)? Probably better if you had never mentioned volunteering/free tuition. Assuming your tax records show no earned income, the college would have simply thought you were unemployed like so many others. </p>
<p>It was good you mentioned that your large asset amount is from life insurance and that is your source of income now that you are a widow. Colleges probably have some leeway how to assess that money but they may consider the investment income the same as they do earned income - typically about 25-30%. Then they add in 5.6% of assets (over the protection allowance). </p>
<p>If you have NO pension, you might want to mention that - saying that your home equity is your means of retirement since you are ineligible for an IRA without earned income. Profile schools don’t have to use home equity - it’s their choice and we’ve had schools take it out of the equation. I’m not familiar with GU’s policy.</p>
<p>You are relying on the college’s use of professional judgement - it’s really up to them.</p>
<p>It’s unfortunate you turned down other schools’ offers before receiving GU’s package. No decisions had to be made until May 1 so you could have waited. I would contact the other schools immediately - before May 1 and ask if their offers are still available. Best to have options if GU doesn’t work out.</p>
<p>Has anybody considered that they may be viewing the $81,000 (divided by 4 - $20,000/yr) as additional income ($32k + $20k = $52k)? That’s in fact what it is; if you “volunteer” for a $20,000 benefit, that’s identical to receiving $20,000 in income and spending it. It’s even greater if its untaxed income (it should be taxed).</p>
<p>Could a $52k/yr income plus $300k asset plus home equity produce these numbers?</p>
<p>Please have your daughter apply to a financial safety before it’s too late to do so. She has many great options as an NMF. If you were to visit some of those opportunities the siren call of her current choice may not seem quite so strong…Regardless, it would be most prudent to apply to a safety while you work on your letters/discussions with her 1st choice.</p>
<p>Based on what the OP has told us, I’m thinking that the financial aid office might be attributing greater assets behind the interest she’s receiving on the promissory notes. That is…assume she transferred $100,000 to a borrower who promised to make interest-only payment of 10% interest, and that borrower sends her a 1099-INT each year for $10,000. Financial aid doesn’t see an asset reported to match that interest, so they assume a market rate interest – less say, 3%. Now that $10,000 represents an “asset” of roughly $335,000 </p>
<p>I don’t know the exact figures, but the OP said at one point that she had “$32,000 annual income from $300,000 in assets” and then in another post that she had lent money to trustworthy friends for 10% interest, secured by a promissory note. So let’s say that is entirely interest income, and (based on my hypothetical 3% figure), the financial aid department would impute well over a million in assets. </p>
<p>That’s why I think the first step, before raising personal circumstances, is to have a direct conversation with someone in the financial aid office going over the calculation. </p>
<p>These are the question she might ask:</p>
<ul>
<li>What figure did you use for my income, & how was that determined?</li>
<li>What figure did you use for my assets, & how was that determined?<br></li>
</ul>
<p>If my guess is right – that there is extra money being imputed to this amount, then the next step would be to explain the circumstances --“no, this is 10% interest on $300K, not 3% interest on $1 million – will you adjust the aid if I provide documentation?”</p>
</p>