<p>I want to apply to some Ivy Leagues for undergraduate school, but I am not sure if my family can afford it. Although we fit the low income standard (~45k/year), we have a lot of assets (800,000 - 1 mil). This makes my family look rich, but it's only because my parents have been saving like every penny for all their lives. So basically the schools will think my family can pay more than we actually can (we can't spend my parent's life savings for college). Are Ivy League's more generous with their aid, given my family's income statistics? My parents are willing and able to pay ~10-20k (although 20k is still on the really expensive end) ... Should I even apply?</p>
<p>P.S. My sibling goes to a state school, and does not receive financial aid. We also have a 5 person household.</p>
<p>Your parents earn less than $50,000 a year but they have been able to save about a million dollars? That is fabulous. </p>
<p>Someone can correct me if I’m wrong…but your parents might be eligible for the simplified needs test if their income is really less than $50,000 a year…If they are eligible for this, they would not need to report assets at all. Someone else here will have to give the specifics for this. BUT this would apply to the FAFSA ONLY. </p>
<p>The Ivies require the Profile and your assets will be reported to those schools. While the Ivies are generous to low income students, they are generous when the families have “typical assets”…I think your family’s assets are probably higher than what is viewed as typical for a low income family. In fact…those assets are high for MANY families.</p>
<p>I believe some of the Ivies (Brown maybe) have their own financial aid calculator. Fill in your family’s information and get an ESTIMATE of what the colleges will expect your family to pay.</p>
<p>If your family has almost $1million in savings…couldn’t they pay for your applications?</p>
<p>At 5%, your interest on this savings would be $50,000 a year.</p>
<p>“At 5%, your interest on this savings would be $50,000 a year.” --can you specify what you mean by this?</p>
<p>Also, I just want to know if it’s possible to get application fee waivers where I stand. I just want to financial burden on my parents to be as low as possible, knowing how much(!!) they work and how little they make proportionally. </p>
<p>Do you have you anymore info on the “simplified needs test?” My sibling applied for financial aid through FAFSA but didn’t receive anything.</p>
<p>If your sister was not eligible for the simplified EFC, it’s unlikely you will be either. Eligibility is determined through a series of questions on the FAFSA but the criteria is as follows:</p>
<p>Unless the money is in the mattress, they can not use the short tax form. They will have to itemize investment earnings.</p>
<p>You may get some aid from the most generous schools, HYPS, if you can get in. I’ve never seen a case like this, so it would be interesting to see how they would handle it. Typically they would expect 5.6% of your parent’s assets. You can call and discuss it with an aid officer.</p>
<p>What the above poster meant is that a million dollars should be earning a minimum of $50K each year.</p>
<p>I believe the simplified needs test requires that your parents (and all family members) are filing IRS 1040A or 1040EZ tax forms- not form 1040. If your parents’ assets are from a home that has significantly appreciated, ok. If it’s from lucky investments that appreciated, ok. But, if they have a million in the bank, ie, liquid assets, any aid given to you is money not given to a needy student.</p>
<p>No…read the quote I posted. It’s not required that they file 1040A/EZ if they meet one of the other qualifiers. But clearly dislocated worker doesn’t fit and I think that eligibility for reduced school lunches or any of the other programs listed would also be affected by interest/dividend income.</p>
<p>It’s not a different form at all…it’s still the FAFSA. But, if your responses to the qualifying questions indicate that you’re eligible for the simplified EFC formula, assets are excluded from the EFC calculation. It does not have anything to do with the Profile form that the schools you’re considering use…there is no simplified formula available and the schools will require your parents asset info.</p>
<p>So basically if I get into an expensive Ivy League (or any other school) I want to go to I won’t be able to attend because my parents are savers…■■■</p>
<p>Perhaps this is what they have been saving for! Do you know how much they’re planning to contribute to your education? If you have the qualifications for an Ivy admission, it’s likely you can find good schools that will offer you enough merit aid to attend.</p>
<p>Well I know I can get into some good state schools that I would be fine with and be able to pay for (mostly because of residential scholarships). My dream for the last 4 years, however, was to get out of the state and get a different experience from life. Bye bye dream for the next 4 years…</p>
<p>If your sibling applied to a state school and received no aid at all with a family income of ~45K and substantial assets, then you won’t receive any either. It’s typical (but not universal) for the CSS Profile to generate a higher EFC than the FAFSA. Certainly in your case it will since it weights assets even more than the FAFSA.</p>
<p>That said, you really can’t know what kind of aid offers you might (or might not) get without applying. Apply to a couple Ivy schools if you think you’re a good candidate for them. It’s worth applying see how it might work out. They certainly have some of the best aid policies in the country… though it might not be likely that you’d end up being eligible for them.</p>
<p>And, no, you won’t be eligible for fee waivers. You parents can at least pay for that. And if not them, then you pay for it. Do you have a job? That’s one way to be less of a burden on your parents.</p>
<p>SK8, you say “eligible to file a 2009 IRS Form 1040A or 1040EZ.” My mistake saying required. Depending on the tye of assets, they may be required to file a 1040. Some of that million dollars may be generating income which mandates the 1040. </p>
<p>From FAFSA.ed.gov
You are not eligible to file a 1040A or 1040EZ if you:
Make $100,000 or more per year
Itemize deductions
Receive income from your own business or farm
Receive self-employment income or alimony
Are required to file Schedule D for capital gains</p>
Are the only out of state schools on your planet the Ivys? Or could you apply to some other types of schools which might give you merit money for your Ivy-worthy stats? Your parents have managed to save up a lot of money. Of course you want them to have it for retirement and not spend it all on your education. But what about the kids whose parents have far less? Do you realize that 1 BILLION children around the world live in poverty? That BILLIONS of people live on $1 or $2 a DAY? Get a grip.</p>
<p>I agree with ‘rentof2. You won’t know unless you try. You haven’t said how those assets are invested; it could make a big difference in how they are counted. Gather the information and run some of the aid calculators on the Ivys’ websites.</p>