<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>You may still be able to go out of state…but not with financial aid…because you won’t qualify.</p>
<p>If your stats are ivy-qualify, then there are schools that will give you big merit for stats.</p>
<p>*•Are required to file Schedule D for capital gains *</p>
<p>I would imagine with nearly a million in savings/investments, there have been capital gains…right?</p>
<p>The money is in stock, right? </p>
<p>You can try a couple of top schools just to see, but you ALSO need to protect yourself and apply to some schools that will give you big merit for your stats.</p>
<p>I agree with a previous poster that the question of if/how much of the money is in IRA’s or 401k’s is an important one in your situation.How old are your siblings? Will any of you have overlapping college years? That could play a role as well.</p>
True, but only if they are selling or have sold some of it. And in recent years, it’s more likely that individual sales would be generating capital losses :(</p>
<p>OP…you family’s unearned income (interest on that money) as well as your family’s earned income…will be used to determine your financial aid eligibility. That savings should be earning a substantial amount of interest per year.</p>
<p>Since you have a sibling who already went through the financial application process, you should look at what they had that did NOT qualify them for aid. Has your family financial situation changed? If not, it’s likely that you will be in the same financial aid boat as your sibling.</p>
<p>Re: fee waivers…does your family get free lunch or any other government subsidy? Do they get waivers for other general fees (e.g. sports fees at your school?)? </p>
<p>Did your sibling get fee waivers?</p>
<p>There are some schools (not the Ivies) who provide free applications to students who visit the schools. You might want to investigate this…although it will require a trip to the school(s).</p>
<p>lookingforward, it seems like you’re still thinking that the inability to file 1040A/EZ would disqualify one from the meeting the criteria for the simplified EFC formula. It wouldn’t as long as they meet one of the other criteria listed in that section, ie. are a dislocated worker OR participate in a federal means-tested benefit program. In other words, a self-employed parent making $40,000/year who enrolls his child(ren) in the reduced school lunch program would qualify for a simplified EFC even though he must file a 1040.</p>
<p>CSS and FAFSA do include some protection for assets and savings. But a million dollars in savings is a substantial amount of savings and is more than the average person has. Even if your parents have to pay for your college they will still have a lot of savings left.</p>
<p>I actually think the EFS formulas work out OK for families such as yours. The EFC portion from your parent’s earned income will be pretty low. The EFC “tax” on investments is something like 5.6% after any exclusions … and that million dollars should (over time) be earning something liek 5-8% per year depending on how conservative your parents are. So if your fmaily can cover the income portion of your EFC the asset portion of the EFC is not asking your parents to wipe out their savings … it is essentially asking them to spend their earnings/gains from their investments on your education while you are in college. Bottom line, you need to have a frank discussion with your parents about how much they are willing to pay each year while you are in school and it they are willing to tread water for 4 years on their investments. (PS - the advice about looking for merit scholarships was dead on)</p>
<p>Are you sure that your parents don’t any portion set aside for your education? Most schools don’t cost anywhere near $200k for four years, and your in-state flagship likely costs a fraction of that. If you secure guaranteed merit aid opportunities – even possibly a full ride – your parents’ savings shouldn’t be in jeopardy.</p>
<p>My parents have capital gains from their stock investments…not all stocks have been losing money. Plus my parents get a lot in dividend checks. </p>
<p>*it seems like you’re still thinking that the inability to file 1040A/EZ would disqualify one from the meeting the criteria for the simplified EFC formula. It wouldn’t as long as they meet one of the other criteria listed in that section, ie. are a dislocated worker OR participate in a federal means-tested benefit program. In other words, a self-employed parent making $40,000/year who enrolls his child(ren) in the reduced school lunch program would qualify for a simplified EFC even though he must file a 1040. *</p>
<p>There is something seriously wrong with our welfare programs if a family with over $800k in stocks can get free lunch for their kids. :rolleyes:</p>
<p>Anyway…I don’t think this student is going to qualify for the aid that he needs/wants. CSS schools (which are the ones who usually give the best aid) are not going to be giving this kid any/much money.</p>
<p>This student really needs to apply to some schools with big merit as financial safety schools because the top choices are probably not going to work unless the parents makes a good-sized family contribution.</p>
<p>If your stats are high enough, there are schools that would give you free tuition. With your parents contribution (about $15k), that would cover the rest of your costs.</p>
<p>As far as I can tell, the OP has never clarified whether the assets are in retirement accounts. If these are indeed retirement account assets, the opportunity for FA will be much more favorable.</p>
<p>Whether the money is or isn’t “in stocks” doesn’t have any bearing on whether it’s within a retirement account. A lot of kids (or even parents who don’t understand the nuances of FA) might not distinguish between retirement accounts and non unless they understood that it made a significant difference for FA consideration.</p>
<p>I love this thread, all these CC people trying to help the OP whose family has $1M in assets find ways to get free tuition… this for an OP that is also looking to get application fee waivers. Maybe they should take up a collection for the OP.</p>
<p>No, I don’t think they would qualify if the income criteria includes dividend/interest income…they may even be over the income limits without it! I was just trying to clarify my earlier post.</p>
<p>How could a family making under $50K have a million in retirement accounts? That would be highly unusual for a family with many multiples of that amount.</p>
<p>mom2collegekids - My mom says most of our money is in buildings…like our home, their small businesses, etc. and stocks. Not really anything in retirement, but I will ask my father later to clarify.
Thank you everyone for the concern/help!!</p>
<p>P.S. 10-20k is how much I can spend per year.</p>
<p>Unless they’ve inherited these assets, it’s easier to understand how tax-deferred assets can grow to $1M than one on which you’re paying tax on the dividends every year.</p>
<p>Oops, just saw OP update. In that case, congratulations! Your family in in the running for best savers award!</p>