But don't they realize....?

Paying for College
1

<p>Does finaid take into account the cost of living in different areas of the country? School finaid charts that give examples do not differentiate between a $60,000 salary in urban New York, and that salary in Georgia.</p>

2

<p>No, they do not. There are many perceived inequalities in FA depending on what side of the fence you're on, this is only one. Fair is what I take my kids to in the summer, get over it and move on.</p>

3

<p>One of the major components of the high cost of living in some parts of the country is the cost of land and housing. It may not seem too useful to you as a source of $$$ to pay for college, but the idea is that parents can take out loans against the ultimate re-sale value of that property.</p>

<p>Of course, that whole scenario is pretty frightening if one lives in a place where the housing market goes south in a hurry.</p>

4

<p>Actually the FAFSA does take into account where you live (this is why they ask your state of residence). The CSS profile does ask about your housing costs and whether you own (and have equity) or rent.</p>

5

<p>Do schools look at both CSS and FAFSCA calculations? For a home-owner in New York, which would be more beneficial? Some schools state that they look at the individual applicant and then develop an aid program based on their own calculations (and not the FASCA/CSS). Is this true for many institutions?</p>

6

<p>Most schools start with the fafsa which determines if you are eligilbe for federal aid (it does not count home equity into the equation). However, there are very few fafsa schools that meet 100% of demonstrated need giving large amounts on institutional aid (think NYU which gives massive loans).</p>

<p>The majority of the schools that distribute large amounts of their own institutional aid use either the CSS profile or their own FA form (princeton for example uses both, UVA has their own form). there is not one cut and dry formula for determining need. some schools cap home equity at 2.5x your annual salary, while some schools feel that every dime is up for grabs and other (princeton does not count it).</p>

<p>Your aid can vary vastly from school to school even when they all use the same form.</p>

7

<p>Do the schools which cap home equity cap the equity for all the houses your family owns or only your primary residence? </p>

<p>And I strongly agree that the FAFSA and CSS don't take cost of living in different locations enough into account. I live in NYC and my parents' income is probably on the lower end of NYC incomes, but if we lived in some other suburban or rural town or even another city would be better than NYC, we'd probably be pretty well off.</p>

8

<p>Schools that cap home equity only cap it for your primary residence.</p>

9

<br>


<br>

<p>This is very true. In addition, that second home would be considered an asset added into what the family has available for college expenses. I guess the simplest way to put this...second homes are considered a choice that could easily be eliminated to fund college costs.</p>