Debt in relation to FAFSA/Financial Aid

Paying for College
1

<p>Hey all! It's getting to sort of be that time of the year again and I've spent about a month trying to perfect my Common App, but my parents always seem more concerned about the finances than anything else. Several of the institutions I'm applying to are "need-blind" or provide "100% of needed financial aid."</p>

<p>But my family is in a (I think) unique financial situation. My mom closed her small business a few years ago very heavily in debt and we stupidly bought an outrageous timeshare before the recession fully kicked in (my mom says it's the biggest mistake of her adult life). So even though my dad makes around $170,000 yearly (I can't get an exact figure; my parents are uncomfortable with telling me), my mom and him make it very clear that we should be worried about applying for college in terms of finances.</p>

<p>With that being said (and there are some other little debt things, like the year I thought I could afford private school), is there any way "100% of financial aid" institutions will look at that? Is there anywhere that appears on FAFSA? Should I contact the schools directly and explain the situation or is there nothing I can really do?</p>

<p>Thanks so much!!!</p>

2

<p>Debt is a personal choice and is not considered for Financial Aid. The only exception to this is medical debt due to illness and that is rare. </p>

<p>At that income level you will not be getting need baed FA except for the $5,500 Stafford loan. You need to find schools that will give you merit aid based on your grades/SAT scores. </p>

<p>Contacting the schools to plead for money because of debt at that income level is a waste of time.</p>

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<p>And unfortunatey closed businesses and high debt is not a unique situation at all.</p>

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<p>Debt is a personal choice. Buying things like timeshares are luxuries and colleges aren’t going to give you aid because your parents made personal and luxurious decisions and now have debt.</p>

<p>You’re on the wrong path. You’re spending all your focus on the Common App and “full need” schools, while your parents are VERY rightly concerned about costs because they know you’re not going to get the aid you need.</p>

<p>$170k or so income is too high to get ANY aid at most schools. Harvard or Yale might give you a LITTLE bit of aid, but your parents would still have to pay the BULK of the costs, which they can’t pay.</p>

<p>You have to realize that getting “some” aid is not going to work for your family, since most/all schools are going to expect your parents to pay a LOT more than they can.</p>

<p>For instance, at a school that costs $55k+ per year… Say, the school determines that you can get $10-15k in grants (at a super generous school) based on family income. Will your parents pay the other $40-45k??? Very likely NOT. </p>

<p>Do this NOW:</p>

<p>Ask your parents how much they can spend each year on college. If they nervously won’t tell you, sit them down and say that it’s VERY important that you don’t waste time and money applying to a bunch of schools that will not work out. </p>

<p>Explain to them that the schools that are on your current list will expect a very large financial contribution from them (likely full pay or close to it). If that’s not possible, then that’s why you need to know how much they CAN pay.</p>

<p>Tell them that you need to know if you must apply to schools that will give you very large merit scholarships for your stats.</p>

<p>For instance…if they say that they can contribute $10k per year, then you will need AT LEAST a full tuition merit scholarship from a school. That way, your parents $10k plus a $5k student loan can cover your room, board, books, fees, etc. Half-tuition scholarships, etc, would NOT be enough with that scenario, because the remaining costs ($30k) would not get covered. </p>

<p>If they still won’t say much, then say, “If you can contribute $12k per year, then that means that you have to come up with an extra $1000 out of the family budget each month for 48 straight months…can you do that?” (frankly, if they’re in debt, they may not be able to even come up with that much). </p>

<p>The bottom line is that parents who are in debt do NOT have extra money leftover at the end of each month. That’s why they can put very little towards college…even though they have a high income. All their money is already “spoken for”. </p>

<p>What are your test scores and GPA (include SAT breakdown)</p>

<p>What is your GPA?</p>

<p>What schools do you like?</p>

<p>What state are you in?</p>

<p>What is your major and/or career goal?</p>

5

<p>From your old posts, it looks like you applied to colleges last year. Are you out of high school? What happened with your apps last year? </p>

<p>And, what kind of aid results did you get when you applied for aid? What was your FAFSA EFC?</p>

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<p>Looks like last year (s)he applied for the Resident Honors College at USC – it is early HS – [Resident</a> Honors Program > USC Dana and David Dornsife College of Letters, Arts and Sciences](<a href=“http://dornsife.usc.edu/resident-honors-program/]Resident”>http://dornsife.usc.edu/resident-honors-program/)</p>

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<p>Not true. At that income level, your family might well be eligible for a very small amount of aid at a very few schools. </p>

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<p>Of course there’s something you can do! Focus on schools that offer substantial merit awards. Start with the schools that offer [url=<a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/848226-important-links-automatic-guaranteed-merit-scholarships.html]automatic/guaranteed[/url”>http://talk.collegeconfidential.com/financial-aid-scholarships/848226-important-links-automatic-guaranteed-merit-scholarships.html]automatic/guaranteed[/url</a>] merit awards. These are based purely on your ACT/SAT test score and GPA - if your stat’s are high enough, the scholarship is guaranteed. Then spend some time researching the schools that offer competitive merit awards. Focus on schools where the average incoming student GPA/test scores are lower than yours - so the school would be willing to pay to have you as a student!</p>

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<p>^^^</p>

<p>In this scenario, it’s essentially irrelevant that a rare school like Harvard might give a small amount of aid. (not to mention the chances of being admitted to such a school is a total lottery.)</p>

<p>From the OP’s post, clearly the family does NOT have the means to pay the balance of a pricey school after getting some nominal amount of aid. </p>

<p>This is a family that will be lucky to be able to pay $12k per year without going further into debt. Their contribution will be far below what colleges will be expecting them to pay.</p>

<p>this student has to get past the idea that some schools might give “some” aid. “Some aid” is not nearly going to be enough when the family’s finances are so tight because of debt. </p>

<p>This reminds me of the kids who get excited about a $10k per year scholarship, but then they are shocked when their parents won’t pay the other $45k.</p>

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<p>“but my parents always seem more concerned about the finances than anything else.” That’s a scary statement coming from a prospective college student, and sounds like you may not being taking their financial constraints seriously. If you were in charge of the money, perhaps you would have made different choices, but the situation today is what it is. It is easy for students to think that college costs don’t really matter, but they absolutely do. When you’re further operating under the misconception that there are magical schools out there that give large amounts of financial aid to students whose families earn $170K/year, you’re really not understanding anything about the financial aid process. At. All. </p>

<p>Do what others have suggested here. And keep repeating to yourself, “Money does matter.”</p>

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<p>Depends on what you parents can give you. You need to ask how much and get a good number your parents can really afford. If they say they have no money to give you for college and they may since they are not telling you, than you are going to have to go to cc and then transfer. You can get a government loan for $5,500 for the first two years. This should cover tuition for most community colleges but I do not know the cost of your state’s cc. Save as much as you can for junior and senior year of college, so that you can make up the difference between the government backed loan and the university you plan to attend. Most universities tuition costs more than the $6,500 and $7,500 you will get for the loan. You will have to find an university that you can commute to save money on room and board. Your parents make more than most people and you are not likely to get much in the way of FA. This how most students get through college. This is the way most donut hole(make too much but can not afford college) kids get through college. </p>

<p>Now if your parents say they can contribute $10k to 20k, then you have more to work with and more options.</p>

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<p>*Quote:
is there nothing I can really do?
*</p>

<p>It sounds like you’re in a better situation than other kids whose parents have an unaffordable EFC…because you have good stats.</p>

<p>As Momof3greatgirls says, many others have to go to a CC and then transfer. </p>

<p>However, it sounds like you have very good stats, so you could have some options. BUT…and this is a big BUT…if you stubbornly cling to a list of schools that won’t give you HUGE merit scholarships for your stats, then it’s VERY likely you’re going to end up with a handful of acceptances but NO MONEY to pay for them. </p>

<p>Yes, your parents seem to only be concerned about money. When a family has money problems, then THAT becomes a HUGE focus. When a family has a very sick family member, then THAT becomes a HUGE focus. That’s how it is. Your parents know that they can’t afford the schools that you’re looking at. And, no, schools aren’t going to give you aid based on debt and other choices. </p>

<p>PSAT score 211/200
PLAN score 35 – 36
ACT score 32
SAT score 2150</p>

<p>and mostly A’s, some B’s.</p>

<p>Are those your stats???</p>

<p>What is your major? What is your home state? </p>

<p>But, also, you need to clarify those past posts. Are those your posts or a sibling’s posts? If they’re yours, then what happened when you applied last year???</p>

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<p>As already explained upthread, last year’s application was apparently to an early college program for students entering their senior year.</p>

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<p>thanks…I missed Kat’s post.</p>

<p>the student just needs to be in proper focus…“some aid” isn’t going to cut it if the family can’t contribute much…“very heavily in debt” and “outrageous time share”. With those kind of burdens, even an affluent family can find themselves with little left over each month. </p>

<p>We see posts like this from time to time: families making high incomes…large debt/mortgages…unaffordable EFCs…and students wondering if they can get “some” aid. “Some aid” doesn’t make a dent in schools that cost $60k per year. </p>

<p>And, in case the OP doesn’t already know this…students can only borrow the following amounts…</p>

<p>frosh 5500
soph 6500
jr 7500
sr 7500</p>

<p>So, if the thinking is that loans will save the day, think again. To borrow more than those amounts the student would need WILLING and QUALIFED co-signers. Since the parents are already deep in debt, it’s very unlikely (and unwise) for them to qualify or be willing to co-sign more big debt.</p>

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<p>Thanks everyone for the quick return posts! I really appreciate all the help, that’s why I love this site.</p>

<p>Last year I applied for the RHP program at USC, however my stats weren’t good enough and I didn’t get accepted. My stats now are as follows:</p>

<p>PSAT score: 200 (I have entered the National Merit scholarship program… still waiting on results, although I don’t think this is high enough)
ACT score: 35 (36 when superscored)
SAT score: 2150
AP Scholar with Distinction (I have 5’s in AP U.S. History, AP Biology, and AP Chemistry and 4’s in AP English Literature, AP Microecon., and AP Macroecon.; currently I’m enrolled in AP English Language, AP Calc. AB, AP Stats, and AP Govt.)</p>

<p>My class rank is 13 out of 449. My cumulative weighted GPA is 4.318 (my school doesn’t report unweighted cumulative). I live in Ohio; but I love big city schools (just from reading your posts I think it’s reasonable to cross out NYU and USC though).</p>

<p>Career wise, I’ve been looking majorly into neuroscience and international relations double major; possibly with med school afterward because with the double degree and my relationship with Rotary International, I would be able to get a job directly after my undergrad. Dream job would be neurological physician.</p>

<p>We applied through FAFSA last year, but my dad did it rather hastily (my mom and I are doing it this year for that reason) and we were never returned any results that I know of.</p>

<p>As for merit scholarships, the only school I have on my list right now that offers a decent merit scholarship is Ohio University Athens; their Gateway Scholarship offers full tuition (about $10,000) for above a 32 ACT, however room and board costs $12,000.</p>

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<p>FAFSA is just a form you complete to send aid applications to the schools you list on FAFSA. When you complete FAFSA, any aid offers come from those schools. As you were not in college last year, you would not have received aid offers. </p>

<p>A 200 PSAT score will not be high enough for national merit consideration. But your stats should help you find merit aid at some schools. It is unlikely you will be eligible for any need based aid at the vast majority of schools, so you should focus on schools where you will be eligible for merit based scholarships.</p>

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<p>Please sit down with your folks – today, or very, very soon – and have a direct conversation about money for college. How much can they help you for college each year? You need a real, solid number for planning purposes. That number will influence specific merit scholarship programs at various colleges. </p>

<p>If their answer is none, or less than $5000/year, you need to look at the schools that offer a full-ride (tuition + room & board) or very close to it, or a school that will offer a scholarship for full tuition and fees and that has inexpensive room/board options that keep you within the Direct student loan limit of $5,500 for a freshman. Alternatively, some local in-state colleges might offer someone with your stats a very good deal, and you need to check them out.</p>

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<p>{quote]As for merit scholarships, the only school I have on my list right now that offers a decent merit scholarship is Ohio University Athens; their Gateway Scholarship offers full tuition (about $10,000) for above a 32 ACT, however room and board costs $12,000.

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<p>Then you need to change your list!</p>

<p>The schools aren’t going to change their financial aid policies in order to accommodate you. You need to change your list in order to accommodate them! There’s no point in applying to schools that you and your family won’t be able to afford.</p>

<p>As already suggested, sit down with your parents, find out exactly how much they’ll be able to pay, and plan your applications accordingly.</p>

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<p>We applied through FAFSA last year, but my dad did it rather hastily (my mom and I are doing it this year for that reason) and we were never returned any results that I know of.</p>

<p>You need to go online and see what happened…was it submitted? If so, you should have been given an EFC. Done hastily or not, it was either submitted or not and there should be an EFC given - even if it’s not perfectly accurate.</p>

<p>As far as it being done hastily, it doesn’t really take long if you don’t have a lot of things to report like a bunch of assets, etc. It can take a very short time if you’re uploading data from the IRS. </p>

<p>The bottom line is that EFC is largely income based (unless your parents have massive assets), so with an income of $170k, your EFC is going to be about $55k per year. </p>

<p>the time-share is also an asset.</p>

<p>You need to find out how much your parents will pay each year. Since you’re balking at the $12k for room and board, that suggests that you know that your parents won’t be paying that much either. YOU NEED an amount from them.</p>

<p>With an ACT 35, there are schools that will give you large merit. </p>

<p>If your goal is med school, then go to a good school that will give you the most merit. Do not focus on neurology for a major…not necessary for med school or to become that specialty. Your goal is to find schools that give HUGE merit and they may not have neuro…but may have bio and psych neuro courses. </p>

<p>There are a number of schools that will give you half tuition or full tuition for an ACT 35, but it sounds like you need more than that. </p>

<p>You should apply to Alabama. You’re assured a full tuition scholarship, BUT, applicants who apply early in the app season (in Arts and Sciences) who have an ACT 35 or 36 are often given an add’l large scholarship (so free tuition PLUS more money). So, apply now. The school app and scholarship app are both very quick and easy.</p>