Am I eligable for financial aid?

Paying for College
1

<p>I'm really worried I'm not! I thought I was just a couple of minutes ago, but looking through the financial aid application, has made me really nervous.</p>

<p>The thing is, they want you to declare your family's assets. That's not a chock, I mean, of course they want you to. The problem, however, is that my father has in some miraculous way been able to pile up about $200.000, though that money is for his and my mother's retirement. That money would probably have to be considered as savings, thus making me very not-in-need of financial aid. In theory, true, but I don't really want my parents to die from starvation as they reach the age of 65. Do the colleges understand this? </p>

<p>Also, I think he has some other money saved up for emergencies. It's not much at all, it's not anywhere close of covering a tuition cost, but still, they're "assets". I couldn't find anywhere to explain what all the money was for, so I guess everything put as savings would be considered as liquid assets ready to cover my college costs. True? </p>

<p>Another thing that has been on my mind, is that he owns a third of my grandmother's house. In cash it can't be worth much at all, but in terms of sentimental value, it's invaluable to him. It's where he grew up, so I guess selling his part is out of the question. Would the colleges require him to? I mean, I realize they probably take you for an idiot owning properties and having lots of cash put away, and still expecting them to pay for your education. But really, it's not that we spend money on anything unnecessary. We struggle to pay the bills for God's sake! </p>

<p>One last thing. I know for a fact that my grandmother has an account in my father's name, where she's been putting away some money. We don't know how much there is, she just won't say. Don't ask me why. Anyway, it kind of makes it impossible to declare it as anything. So let's say that I would get some kind of financial aid, and that she'd suddenly give it to my father, would they rescind their offer? I mean, we would've been "lying" in the application. </p>

<p>I would really appreciate some answers! </p>

<p>//Balth</p>

2

<p>Balth:</p>

<p>I hope you realize and understand that Fin Aid for Internationals is rather difficult. Also, please don't be mistaken when schools say they have Need Blind Admissions Policy or they meet 100% of demonstrated need. Those statements are more true for domestics than internationals. I hope you devise your application strategy accordingly.</p>

<p>With the numbers you have given (if you do get need based aid) your family will be expected to contribute about $15k/year.</p>

3

<p>Balth -- probably the first thing to establish is whether you are applying as an international student to a school in the united states.</p>

<p>please tell us that much first.</p>

<p>second -- what "financial aid application" are you referring to?</p>

<p>Your parents are expected to pay for your schooling. You may qualify for some assistance if income is low, you have other siblings in college and/or your parents do not have assets available for paying college tuition.</p>

<p>It sounds like your parents do have assets available -- it is up to them as to whether they use them to pay your tuition. The older the parents are, the more asset protection allowance they are given -- but they are expected to pay.</p>

<p>Also -- you don't mention your parents yearly income -- that will play a big part of determining the EFC. </p>

<p>And you will have to determine how much money is in the account that your grandmother has with your dad's name on it. Or she will need to take his name off of it.</p>

4

<p>First off, I'd like to say that I realize this is a very hard question to answer, which is why I really appreciate you guys doing so! </p>

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<p>Hehe, sorry for leaving out essential information. I wrote in panic though, so I guess that could have something to do with it. </p>

<p>Yes, I'm appying as an international student to an american school, and I'm referring to the "Financial aid application for international students" for Williams College. </p>

<p>Of course they have to pay, but I'm afraid that the application might give the impression of us having assets, we really don't have. The $200.000 I mentioned, are saved in different pension funds, and are what my parents will live off of once they've retired. </p>

<p>My father's 50 years old, my mother's 46. </p>

<p>I don't know exact figures for their incomes, but their total income is somewhere in the $100.000-region. It may sound much, but in Sweden it's everything but. Again, I don't have the exact figures, but their disposable income should total up to about $40.000 after income taxes. On top of that comes all kinds of taxes, gastronomic gas prices and the highest living costs in Sweden. The margins are low, to say atleast.
I'd say it's virtually impossible to squeeze out $15.000/year from their incomes, and unless we sell our house I really see no way how we could raise that amount of money. My grandmother's still alive and kicking, so to sell a third of her house wouldn't be a great solution either. </p>

<p>The only liquid assets we have available is the emergency buffert and the "secret" account, though I highly doubt they'd cover a fraction of the total costs. That's unless my grandmother's secretly rich, which I also have great doubt in. </p>

<p>I'll talk some to my parents, and then I'll return with some more questions! Hope you'll still be here for them. ;)</p>

5

<p>I wrote it so that you have realistic expectations. Every year, there are few international students who apply to top schools (need blind in admissions), get accepted but get mad because the school did not offer any aid.</p>

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<p>Balth -- I wish there was some type of financial aid calculator for internationals, but I couldn't find one. Hopefully, someone else here can take those figures you gave and give you an idea.</p>

<p>As far as financial aid goes, you submit the information and the school will give you a financial aid award. This award will take into account the information you give them. In your case, some assets will be protected due to your parents age. Money in pensions and retirement accounts is generally not accessible before retirement without major penalties and is generally not counted in the assets available for paying college tuition. If your parents own a house and also a part of a second house, they don't expect you to sell it -- but they do expect parents to be able to borrow money against the equity. the emergency fund and the "secret account" will be considered money that could be used --so you are going to have to get some details on those. What is not counted in the figures is the money that you could borrow.</p>

<p>So filling out your financial aid paperwork, the school comes up with the EFC (Expected Family Contribution -- what you and your family are expected to pay). The school also has a COA (Cost of attendance -- the cost for tuition, room and board, books and sometimes travel money). They then take the COA - EFC = Demonstrated Need.</p>

<p>Demonstrated Need is the amount that you need (as determined by the school, not you) to attend. they do not need to meet 100% of this (if they don't, it is called gapping and is quite common). They can meet whatever portion of the demonstrated need they want with a combination of loans, grants and work-study.</p>

<p>Let me give you a scenario -- </p>

<p>School figures out your EFC is $15,000. COA at this school is $40,000.</p>

<p>COA - EFC = 40,000 - 15,000 = $25,000 in demonstrated need. Let's just say that this school gaps its international students by an average of 20%. so your financial aid package will provide $20,000 in assistance and that it includes grants, loans and work-study.</p>

<p>in this scenario (and I am just coming up with numbers for an example) you would have to come up with $20,000 to pay your EFC and the amount gapped plus take out any loans the school offers.</p>

<p>From your description, you could do that. your parents could pay some you could borrow some from Sweden -- that would cover your EFC.</p>

<p>You need to explore this more -- possibly contact a few schools and see how they figure out your EFC.</p>

<p>One warning -- it is highly, highly competitive for international students!!! both for admission and for financial aid. I don't know your stats, but you may be putting the cart before the horse.</p>

<p>many schools will accept international students, but award them no aid whatsoever -- so be warned.</p>