Accuracy of institutional methodology calculator?

Paying for College
1

<p>I've got an efc of 230$ and collegeboard is estimating that my IM contribution will be 8,763$ and well there's absolutely no way I can afford to go to a private school if that's true. I've heard some schools will limit the assessment of our home value based on my parents income. Is that true? Has anyone else had the school calculate your IM at a lot lower than college board?</p>

<p>and if anyone knows more about this than I do... is 9k really a realistic expectation for someone with these stats?
I made 2323$ last year and have 1200$ in savings
My mom is 56 and dad is 63
Their adjusted income is 8922$ (filed a 1040)
mom has 60k in retirement savings (ira that kinda stuff) and is going to school full time
dad has 140k in retirement savings
we have 17K in savings
and 12k in investments
our house is worth $190,000 (just finished paying it off)</p>

<p>given their income and age there's no way they're going to take out a second mortgage and since I'm certainly not expecting them to pay for college, I'm really hoping the colleges aren't going to expect them to pay this much either. </p>

<p>Anyone with similar stats get a lower number?
I'm hoping to attend smith college (meets 100% need)</p>

2

<p>Are you saying that your family is only making $9k per year? Or is that after a lot of deductions? </p>

<p>If your parents don’t have any rent or mortgage, it may look like they can afford to pay more for your schooling, but certainly not so much that it’s all of their income.</p>

<p>I’m curious, how were your parents able to save so much if their income is that low? Are they now retired?</p>

3

<p>I hate to have to say this, but since most public schools don’t meet need, any state school would probably cost you as much.</p>

<p>Look at Smith’s FA handbook. They probably cap home equity. You could also make a big dent in that EFC with an extra job summers.</p>

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<p>It doesn’t work that way, many have low incomes but substantial assets. Not saying that’s the case here, but EFCs can be more than income.</p>

4

<p>All I can say is my parents are very frugal and I pay almost all of my own expenses including health insurance. I don’t remember any point in my life where we made much over 30k and that was with 4 kids. Both of my parents are working though my moms only part time (all she can get with her going back to school) and my dads self employed. He was a small bookcover desginer but that markets almost dried up in the last ten years. </p>

<p>I’m not sure how to answer your question about deductions. Like I said my dad has his own business works out of the home and has no employs or assets. His actual net earnings were only 1990 and my moms were 6600.</p>

5

<p>Keep in mind that the institutional calculation is a broad estimate. And it does not apply to the majority of private colleges. It is designed in mind with those that utilize the profile.</p>

<p>Do your homework, and you’ll come up with some pretty good options.</p>

6

<p>Ahhh I can’t find any information on it on their website. I’m not sure if I’m all wrong with doing this but if they do cap at between 2.4-3X my parents adjusted gross income then at most I’ve only got to worry about them assessing 27k right? (9x3) I entered that into the calculator and got a much more comforting 300$. That’s probably not an accurate way to figure out how they calculate it but I’m relieved.</p>

7

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<p>I realize that. But the OP’s family appears to have most of it’s assets protected in retirement accts.</p>