<p>I agree that “big” grants are not always good enough. My S got a package from one school that included a large grant, but then I showed him the rest of the story. I explained how much he would have to borrow … how the interest rate would affect the loans … and how much the professional phase of his program would cost (no grants during professional phase). He correctly concluded that the state school would be the better alternative.</p>
<p>The other day we visited his pediatrician, and when she asked him about his plans for next year, he said, “I’ll have to go to XYZ State.” She asked about his other options, then asked WHY he wanted to attend the other schools. She looked him square in the eyes & said, “You’ll be going to XYZ State. Why would you take out loans when you don’t need to? You can get a job in Colorado, and you’ll have enough money to snowboard whenever you want … because you won’t be repaying loans.” THANK YOU!!</p>
<p>kels: Oh, exactly on the loans! As my son gets closer to graduation (in '11), he realizes more and more how amazing and incredible it is for him to be getting an undergrad degree without taking on debt. He has so many more choices open to him, because he doesn’t have to be thinking about how he’ll repay loans.</p>
<p>College debt is the syphilis of financial aid. It infects every aspect of your life, forcing you to make decisions centered around it. Sure, you can get rid of it at some point, but if it’s at all possible everyone recommends getting a shot of penicillin right off the bat. </p>
<p>As thumper recommends, I don’t think that anyone should take out loans each year that are so close to their annual income. 8.5k per year (likely to grow with each year since colleges often lose the incentive to be generous with the grants once the student is already committed and in the middle of their junior year, for example) x 4 might be onerous.</p>
<p>How much does this family get in child support? Child support is not included in AGI and, if the family receives generous child support, it is possible that there is more spendable $ in the budget.</p>
<p>Also, are there any arrangements for the non-custodial parent to contribute to college? </p>
<p>Frankly, unless those situations apply (generous child support or ncp contributing to college), I think the student needs to take the free ride and look into a job to help out his/her family. That’s a pretty old-fashioned view but if you have 5 younger siblings and a parent living in poverty, you help out when you come of age. </p>
<p>By the way mom2collegekids, if this is from a divorce settlement, it’s probably not child support. It’s probably a settlement from assets (sale of property, stocks, retirement accounts) and belongs to the <strong>parent</strong> not the children. I’m saying this because even though the parent is spending down this $ on his/her half-dozen children, he/she will be left in a precarious situation as those children grow up. </p>
<p>The parent would probably be in a better position if he/she invests that $ to generate income and avoids spending it down.</p>
<p>By the way mom2collegekids, if this is from a divorce settlement, it’s probably not child support. It’s probably a settlement from assets (sale of property, stocks, retirement accounts) and belongs to the <strong>parent</strong> not the children.</p>
<p>Oh, I totally agree. I wasn’t suggesting that the big savings was from child support. I know it’s likely from a property sale (or retirement). </p>
<p>I was suggesting that perhaps the “income” is from child support. I’m not sure if when the OP says they have a $12k AGI, he’s loosely including child support in that statement. That’s why I mentioned that the mom’s “income” may shrink as each child reaches 18.</p>
<p>My point about the $100k savings, is that money is going to be needed for long-term things…not college costs.</p>
<p>To answer your questions, yes the family gets child support of $27,600 per year, so the family does not live in poverty. This entire amount is spent on the children (nothing remains at the end of the month to add to the savings account, which in fact has been slowly dwindling over time) and is not included in the AGI calculation.</p>
<p>Another detail. This family has two different non-custodial parents. The non-custodial parent of the child going to college separated from the child’s mother one month after birth, also has very limited income and assets, has NEVER paid any child support, and will not be contributing to college. (He did fill out the non-custodial supplement in the CSS profile).</p>
<p>As of today, even with the $100,000 currently in “savings” the family is not inclined to accept a FA package from a private university that requires payment of a $7,000 gap PLUS $6,500 in loans. The almost free ride (aprox. $2,000) at a state university (even if less prestigious) is more attractive at this junction.</p>
<p>Agree that the almost free ride is more attractive! :)</p>
<p>Glad to hear that your step-dad pays your mom a good amount for child-support for your siblings. As high as that is, it will decrease as each of your siblings reach 18. At some point, your mom will only have her earnings (which are low - likely because she can’t work much with several kids to raise). My point was that when the time comes when your mom is receiving little to no child support, that $100k will likely be needed because it may be hard for her to quickly increase her income to compensate for the loss of child support. </p>
<p>It sounds like you do realize that. My concern was because of what was written in your earlier post… * “Yes there is a gap (it’s $7,000). And yes, the family can pay for it because they have aprox. $100,000 cash in savings. Family could also reject the Stafford unsub loan (in order to save on the interest payments).” * </p>
<p>That sounded like either you expected your family to do this or your family was considering it. I’m glad to hear that you’re not. :)</p>
<p>BTW…are you thinking about politely asking the school to reconsider your aid package? It may not result in any changes, but it might. The worse they can do is say, No. It sounds like this is a CSS Profile school.</p>
<p>Thank you. That was my question. You said the family doesn’t live in poverty but, I’ve got to tell you, that income level (including the child support) is still below income guidelines for free lunch. I think $40K for 6 kids is quite a challenge! So yes, I think that financial aid package is out of the question. You really can’t ask your parent to spend down that $100K for college because a college education is possible for much less. Your parent will likely need that $100K for needs. </p>
<p>By the way, you posted your EFC so we thought you had been gapped but is it possible that the $7K ‘gap’ is what the college expects will come from the ncp (since he filled out the form)? If so, I would ask the college to reconsider and do what I could to show them that ncp has never paid child support.</p>
<p>2collegewego: The family in question may have other income that wouldn’t be FAFSA eligible. For example, the mother may have a unmarried partner who helps support the family. That person’s income wouldn’t be included, but might make the household ineligible for free lunch.</p>
<p>TrinSF, There could be a lot of ‘maybes.’ I am going by what the OP posted. If the family has significant other $ involved, then it would be best if the OP included it so the advice is helpful. The issue is not whether the family can qualify for free lunch. The issue is whether or not the family is “living in poverty” and there are people who live in poverty in suburbia.</p>
<p>But, that aside, the question remains as to whether this is a full-need college and the gap is ncp income. I’m asking because that could be tackled (by requesting a ncp waiver if the parent has never provided child support) and possibly result in a better package for the student.</p>
<p>Didn’t know we could request a NCP waiver!! (didn’t read anything about that anywhere in the CSS Profile instructions!). In any case, it’s probably unlikely that the $7k gap is what the college expects from the NCP. We don’t know his AGI but we know it’s low. He doesn’t have a college degree, his home was foreclosed last year, and has a family of his own with a baby to support.</p>
<p>To clarify the other points, it’s five children in the family, plus the mother and another stepfather (not the one who pays child support) for a total of seven (mom and her current partner are married). The mother doesn’t have a college degree and has never worked full-time. The $12,000 AGI is basically income generated by the stepfather doing odd jobs. He has a college degree but has been unemployed the last year and a half.</p>
<p>How many children will be in college at the same time? A package that might be doable with one kid might be unworkable for four or five at once.</p>
<p>True…but not in this case. The OP cannot reasonably expect any money from the household…his mom doesn’t work, his most recent step-dad didn’t raise him, the child support that comes in is from another stepdad for other children. Technically, his mother has no money really for him. And, his current step-dad earned about $12k last year. Hardly enough to contribute anything.</p>
<p>This student needs nearly a full-ride where he/she pays for incidentals, etc.</p>
<p>Sorry, that’s what I meant. A package that might be good (a near full-ride, with only a couple of thousand dollars gap per year) might work for one student for four years but might be overwhelming if the family has to put in four more children through school. Let’s say that after the full-ride the student only has to fork over $1500 per year for college expenses. That might work, but if there are more children going to college at the same time, there’s no guarantee that they will get the same generosity even if they go to the same university depending on multiple circumstances.</p>
As high as that is, it will decrease as each of your siblings reach 18. At some point, your mom will only have her earnings (which are low - likely because she can’t work much with several kids to raise). My point was that when the time comes when your mom is receiving little to no child support, that $100k will likely be needed because it may be hard for her to quickly increase her income to compensate for the loss of child support. </p>