blossom, thanks for that clarification. Once I read your post I realized the mistake. I did know that work study is connected to aid. I seem to lump it all together.
Also…this student seems to want to apply to colleges where the Profile is required…and what is or isn’t allowed on the FAFSA may not apply for Profile schools.
This is a bit off topic, but it seems prudent to save more money for your children’s education than to spend so much time or money to understand how your trust impacts your EFC. For an income of $185K with an impending $30K increase, on average it seems a bit improbable that you only have <$10K in the bank. I don’t have experience with college FA but I wonder if the college FA offices are suspicious about this.
It’s possible this familynis fully funding TSA/IRA accounts which be $20,000 per parent a year…or more.
But if so…does this $185,000 a year income INCLUDE the contributions made to those tax deferred retirement accounts for,thentax year? Those WILL be added back in as income.
At 185K isn’t this all moot?
The OP says that with the income of $185,000 plus the $150,000 in 529 accounts, the EFC is about $50,000 per year.
Adding in that $150,000 worth for the condo trust, it rises to $58,000.
But the OP says they can only afford $40,000 a year…so…really…a $65,000 or $70,000 a year school with a family of $50,000 even will be unaffordable for,this family.
They need to cast a broader net…look at the characteristics of the expensive LACs currently on the list…and find schools,with similar characteristics where this student will get sufficient merit aid to bring their out of pocket costs to the $40,000 range.
Thanks for all the help with my questions. I think at this point, I just need to talk to lawyer/CPA to resolve the mysteries of the trust.
As for finances: $185k is relative depending on the cost of living in your location. $185k goes a lot further in rural Alabama than it does in, for example, San Francisco. And families must spend savings (or earnings) on any manner of things: medical bills, necessary home and car repairs, childcare, emergencies. We are no exception and have had our share of unavoidable expenses in the last few years.
My parting comment is…your child can get an EXCELLENT education at colleges that cost less than $60,000 or more a year.
And if you live in CA, and can afford $40,000 a year, your instate public universities are financially accessible for you.
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$185k is relative depending on the cost of living in your location<<<<<<
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Is that relevant to even institutional aid though? At $185K (just income, obviously there are other considerations like the 529, 40oK, iras, etc etc) with one kid in uni, it seems almost laughable to expect aid because of your perception of affordability. However it seems that there are people who do wrangle money out of schools with that kind of income so what would I know? Maybe the squeaky wheels get grease but constantly I find on CC is that these threads have no update. Maybe I am the dumb one.
Sybylla, my remark was not regarding institutional aid; it was in response to a poster who suggested that someone with only $10k in savings and a $185k income is suspicious.
Just your $185,000 income…and your $150,000 in 529 funds will put you OT of the running for need based aid at MOST colleges in this country.
And believe those NPCs. If they say your net price will be $50,000, it will be something very close to,that.
And when your income goes UP $30,000…your contribution will go up as well because need based aid will go,down.
In your situation, if you really need aid, I would suggest looking for colleges that provide merit aid…whichnis nit income or asset dependent.
Just to be clear, the EFC you are quoting are based on the NPC of each college (each will be different)? If you own a business, have rental properties, a farm then the NPC will not be accurate.
The FAFSA EFC means nothing excerpt for determining federal aid. It generally represents the LEAST you will pay. For schools that use the Profile, they will have their own secret formula that determines what they feel you can pay. Again, it does not mean that you will not pay more.