Can we afford?

But these kids are getting into a UC, <<<<<<<<<<<

Exactly, OP is sitting pretty with a FAFSA EFC of 41K each twin but access to world class schools at a COA of maybe 30K each being instate for California. Obviously generous reach endowment schools are worth applying to, but you have terrific options. Assuming sensible applications are completed. These kids don’t need to go to Utah, or Bama. As per thumper’s post above, if all the assets were protected, the OPs fafsa EFC isn’t 82 k, so there are resources to be tapped as OPs EFC is as presented.

If they can afford $60k/yr. The OP’s post doesn’t clarify much.

There is something wrong here in terms of the numbers. If EACH twin has a $40,000 EFC per FAFSA…then the total family EFC is $80,000. An $80,000 FAFSA EFC would indicate a gross income well in excess of $250,000 a year OR the addition of very significant assets.

If the family gross income is $170,000 a year, the total FAFSA EFC based on income alone would not be $80,000. It would be $50,000 or so.

So…to @anxiousNot is that $170,000 income before taxes or after taxes are subtracted? Did you add back in any contributions to pretax retirement accounts in 2017? Are those included in the $170,000 income total?

If you and your spouse each contribute $20,000 to tax deferred retirement accounts…that would total $40,000. That $40,000 would be added back in as income for financial aid calculation purposes. So your taxable income might be $170,000…but your income for financial aid purposes would be $210,000.

By any chance…did you have an IRA or TSA rollover in 2017?

Something just isn’t adding up here.

“These kids don’t need to go to Utah, or Bama.”

Hopefully that’s true. Many Californian kids (and parents) aren’t keen on the location compromises that big merit scholarships often entail. So what is actually affordable?

If UCs are going to be the best deal it’s good to start your kids thinking positively about them and being involved in budget discussions now. My S18 was very keen to go out of state initially - he didn’t visit UCLA until admitted students day. But he’s overjoyed to be there now and is saving a lot compared to other options. His twin sister got an even better OOS deal with merit and is also thrilled with her choice. Personally I think she did better, but I guess we will see.

I’m thinking That if the family has $100k after taxes and mortgage, that having $40k to live on isn’t enough either.

We need to hear from the parent as to how much they’re willing to spend each year on each twin.

I don’t think we know whether these kids “need to go to Utah or Bama” or some other huge merit school that would get their costs to their goals.

I expect it is the usual sticker shock to upper middle classed parents of kids with tippy top stats and tippy top expectations of university options. I suppose the big question is, what happened to the statement of no cost constraints as in other thread?

I think there are a surprising number of people with high-achieving kids who somehow absorbed the messages that “high stats kids get full rides” and “high stats kids get in anywhere they apply” and think that both will necessarily happen simultaneously (and the second one is of course not true to begin with).

I’m really hoping @anxiousNot will check their figures, or let us all know why the financials don’t seem to add up.

Really, most folks with twins in college at the same time…two in college…with income of $170,000 will NOT have a FAFSA EFC of more than $40,000 per kid. The financial situation as explained here does not account for a $80,000 total family EFC…unless the income is actually higher, and/or there are significant reportable assets.

If the $1 million retirement savings is in qualified retirement accounts, that balance would not be added in as an asset.

If the $1 million is in a savings or CD or whatever liquid accounts , that would add about $56,000 to the FAFSA EFC. That very well could be the reason this family EFC is that high.

^Couldn’t the retirement savings be moved (at least partially) to qualified retirement savings? It’d certainly alleviate the EFC.
Two kids in college at the same time with 170K gross income shouldn’t result in an 80K EFC so it’s quite possible either 1° there was a mistake in running the FAFSA and/or NPCs or 2° the retirement savings are indeed in liquid accounts.

there Is a limit on how much can be placed in qualified retirement accounts annually per person. The OP says he has in excess of a million dollars in retirement savings. There is no way that total amount can be moved in one year.

Plus, for all we know…some of this money is in qualified retirement accounts. If they moved $50,000 a year, it would take 20 years to move $1 million into other accounts…PLUS they wouldn’t be able to continue to contribute to other qualified retirement accounts.

The OP seems to have left the room.

OP, please chime in if you’re reading this thread. If not, I’m going to close it.

Thanks everyone who posted on this thread. I’ll try to answer all the questions here.

  1. I think I have put 2 kids in when I filled separate FAFSA forms. So 41k EFC is for EACH. The figures slightly different due to one twin worked in MCD for couple of years and have saved his wage. But maybe I made a mistake? Can someone tell me where to check?
  2. 1m saved for retirement are all in protected accounts: 401Ks, IRAs. And we didn’t do a rollover in 2017. We did put in 13k in 401K 2017 and was added back to our income according the FAFSA form.
  3. They both qualify for NMSF and are in the process to become NM finalists.
  4. They are applying for UCs.
  5. Equity in our house is high. We have a small mortgage but big property tax. But I thought house equity is not considered in FAFSA.

Clarification about no cost constrain statement from before: a promised fund for tuition from a relative is no longer there.

I hope the above clarify things.

Well…one kid has savings…but that would NOT be included innthe second kid’s EFC.

Go and check your numbers. It sounds to me like you did something wrong…possibilities:

  1. You put parent info in the student section too.
  2. You added a zero or misplaced a decimal point.
  3. You put 529 funds as student assets...and usually these are parent assets for FAFSA purposes.
  4. You only put $13,000 in retirement accounts in 2017? That is NOT maxing out your retirement contributions...but I think you already know that.
  5. Did you put the balances in your qualified retirement accounts as assets? They should not be.
  6. Make absolutely sure you indicated that there are two in college.

Something isn’t right here.

And you are correct…primary home equity is not on the FAFSA at all.

You absolutely need to check both FAFSA forms once the process. Make sure you indicated TWO in college.

If your kids will be NM finalists, and you want a real deal…have them apply to University of Alabama…today!

And lastly…did you manually enter your income tax information or did you use the IRS Data Retieval tool? If you manually entered…print out the form and look at each entry…every one…for a mistake.

Something isn’t right.

UC’s do not give NMSF or NMF any special merit aid, so you should consider schools where their National Merit status will give them good FA.

One twin wants to pursue math. What does the other want to pursue?

Then apply to a few schools that give HUGE merit for NMF.

My NMF math major son went for practically free to the University of Alabama. My second son, a Chemical engineering major, also went to University of Alabama for practically free as well.

USC gives NMFs half-tuition scholarships, so apply there. I think there is a deadline soon.

How much CAN you contribute per twin per year for college???

I think the question for number of students in college is one of the first few questions.

The kids’ EFCs should not be identical if one has savings. Check to see if that savings was listed in both fafsas.

USC = University of Southern Calif.

“USC gives NMFs half-tuition scholarships, so apply there. I think there is a deadline soon.”

@mom2collegekids

there is no early deadline for NMF’s applying to USC, as the USC sponsored 1/2 tuition NMF scholarships are automatically awarded to accepted NMF’s whose final first choice college is USC. Students dont have to make that choice until early May.
The Dec 1 deadline is for students hoping to land one of USC’s other 1/2 or full tuition scholarships.
And no, NMF’s can’t receive both the NM 1/2 tuition scholarship and a 1/2 tuition Presidential scholarship.

It never hurts to apply by Dec 1, as long as applicants know the chances of landing a big scholarship are about the same as being accepted to Harvard.

@anxiousNot Posters can offer you a lot of possible affordable options, but affordable means different things to different families. If you shared what you can afford, you will be given suggestions that match your kids’ needs.

Our family can’t come close to meeting our EFC, less than a 1/3 that amt is our preferred budget. Our top students have attended on full or close to full merit scholarships. One is now a chemE, another a grad student at a tippy top program, and another a current UG. All of them have had fantastic UG experiences. So if our kids need merit, don’t believe the hype that their futures are limited bc they didn’t attend a top UG program.

But, if you aren’t interested in that route, there is no pt discussing those options. Sharing your desired parameters will make a big difference in the conversation.