<p>OK, if this is a 17 or 18 year old I would tell this student this: Only about 2% of households nationally have income levels in the $200,000 range. Of that 2% only a small fraction probably have college age students. This student has choice. Choice is a phenomenal blessing. This student needs to talk to his parents about how much they are willing to spend and choose accordingly. There is nothing any of us can tell this family other than to figure out how much they want to spend or look for colleges that give tuition discounts based on GPA/test scores. As others have said, this student can take out a Stafford loan to offset some of the expense. I’m sorry it’s a “shock” to this student but it’s not a negative situation.</p>
<p>To the OP…make sure you entered your numbers correctly on the FAFSA.</p>
<p>If your family income is really in the $200,000 range AND you have significant assets (I would agree these would have to be in the $500,000 range or higher), this might just be an accurate EFC. As noted, even IF your assets are a little less, EFC is primarily determined by income…so you might find that your EFC, while lower, still exceeds the cost of attendance at many schools. With an income in the $200,000 range, your family will not qualify for need based aid (at least not anywhere I can think of). This family income is in the top 10% of income earners in the U.S. </p>
<p>Even IF your EFC were half of what it was calculated to be, it would still be close to or exceed the cost of attendance at most colleges, and certainly the instate publics in your state. </p>
<p>Are you a current senior? If so, did you apply to schools where you might be eligible for merit aid? Did you apply to some schools (your state public universities, perhaps) where the cost of attendance is more affordable to your family?</p>
<p>You will qualify for a Stafford loan of $5500 for your freshman year.</p>
<p>momofthreeboys…I agree with you…while it’s a shock to many families…it’s the way it is.</p>
<p>I think the OP is the student
OP, you can always look at more affordable schools or schools that offer merit aid. Your high EFC just means you won’t get any FA beyond some Stafford loans.</p>
<p>I think Susgeek has the right answer about the cost of living
</p>
<p>Wow, these finaid threads get people riled up. The liabilities, in terms of making college affordable- for this OP- are the high income, business, 2nd house and other assets which, when compared, are much higher than many college families have.</p>
<p>Again, the student has to understand that the formula DOES NOT assume that parents will be spending most/all of savings towards one child’s education (which is what the OP seems to think).</p>
<p>The assumption is that a chunk is to come from CURRENT income, some should come from savings, and some should come from loans. </p>
<p>Maybe I’m reading too much into the OP’s post, but if they are renovating a house (either their own or a second home), that suggests that they are diverting a lot of their income towards that effort. And, if that house is a “second home” then is an asset that will get counted. The OP mentions that this house will be sold once renovation is complete…so if that is a second home, that will further complicate issues when the house is sold.</p>
<p>Lookingforward, it’s not that it riles people up it’s that we can’t help this OP. There is no advice that is going to change their situation right now. I worry when I see these posts at this time of year because it is AFTER the applications are submitted…the only “control” factor that very high income families have is with their applications…where they apply and it’s getting late to apply that strategy.</p>
<p>Agree with momofthreeboys, not enough research & thought is put into this process by the parents & the applicant. Many families do not understand how financial aid works and when Feb-Mar-Apr rolls around a lot of schools might have to be taken off the table. </p>
<p>If that 2nd house is sold in 2011, there will be capital gains to pay as well.</p>
<p>Hey guys I read a lot of those comments, and I know its a blessing to have an income like that, but regardless, paying for a college education is expensive. I’m applying to schools like Brown, Dartmouth, Princeton, UPenn, and they don’t really give out merit based aid, nor are they particularly cheap. I do have a few financial safeties like Stony Brook and Binghamton, but I feel like I’ve worked hard throughout my high school career, and should I get into a better school, I would attend. My parents feel the same way, and value the quality of education over any financial setbacks (we’ll figure out a way to pay), but it’s still a hefty sum of money for a family of 6. </p>
<p>*btw- the house that we are renovating isn’t our own. My dad bought it when the real estate value was low, redid it, and will sell it in a few years. So hopefully that will help out too. Also, we own a business with a land value of about 600,000 and that number had to be put into the FAFSA, but I don’t get how they could use that to raise the EFC; it’s not like we’re going to sell the business and use it to pay for college education.</p>
<p>I’m applying to schools like Brown, Dartmouth, Princeton, UPenn, and they don’t really give out merit based aid, nor are they particularly cheap.</p>
<p>You are correct, they don’t give out * any* merit aid.</p>
<p>but I don’t get how they could use that to raise the EFC; it’s not like we’re going to sell the business and use it to pay for college education.</p>
<p>Even a family with before tax income of $50,000 has an EFC of 1/4 to 1/3 of their wages.
However in our case that was about what instate public college would run & so it was roughly the same to attend the 100% need met school.</p>
<p>But still, we needed to use home equity in order to pay our portion of the EFC.</p>
<p>So what other schools are you looking at?</p>
<p>
</p>
<p>Yes…the value of the land and the second house both need to be listed on the FAFSA. </p>
<p>Good that you have some affordable schools on your list as well. You can get an excellent education at those two SUNY schools. If your family is willing and able to finance your education at a more expensive school, than you really don’t have a problem at all. Yes college is expensive…and some schools are more expensive than others.</p>
<p>Did your family think they would qualify for need based aid or were you just expressing your frustration here?</p>
<p>You know, almost everyone struggles to pay for college, no matter what the family’s income. Our income is very low. It is a burden to have so little money. But our daughters will get substantial financial aid because of our low income. Other people have higher incomes but will pay much of that to colleges. I think that it’s more productive to tell people what their options are, instead of dumping on them for having more money.</p>
<p>In general, the assumption is that families with higher incomes and asset levels can afford to pay more. And, that they could have been setting aside money over a number of years. Perhaps they didn’t; perhaps they used their money elswehere. But, the family that struggles to keep up with basic living expenses just doesn’t have that extra money in the first place. The system isn’t perfect, but it tries to account for these inequities.</p>
<p>Someone suggested OP look for schools that offer merit aid.</p>
<p>
</p>
<p>Yes…the OP should look for schools that offer guaranteed merit aid AND schools which are also affordable without it (looks like he/she did that with the two SUNY schools). </p>
<p>However as pointed out…if the current list doesn’t really include either of the above, this student might want to consider a last minute application to someplace that does fulfill at least one of these criteria.</p>
<p>Then all he/she can do is wait, and see what the bottom line costs are, and then make a decision. The good news for this OP is he has indicated that his family will find a way to pay for college for him. Some students, sadly, are not in that financial position.</p>
<p>*I’m applying to schools like Brown, Dartmouth, Princeton, UPenn, and they don’t really give out merit based aid, nor are they particularly cheap. I do have a few financial safeties like Stony Brook and Binghamton, **but I feel like I’ve worked hard throughout my high school career, and should I get into a better school, I would attend. My parents feel the same way, and value the quality of education over any financial setbacks <a href=“we’ll%20figure%20out%20a%20way%20to%20pay”>/B</a>, but it’s still a hefty sum of money for a family of 6. </p>
<p>*</p>
<p>this is all a personal choice, which is why the responsibility to pay needs to be with the family and not somewhere else. I can feel that I’ve worked hard and deserve to drive a Mercedes instead of a Chevy, so that mean that I can’t be shocked or surprised or frustrated when I have to pay for all of it all by myself. </p>
<p>Have you talked to your parents? Are they fully aware that they will be paying full freight? As long as they know that and it’s ok, then you’ll be fine.</p>
<p>And, yes, when your dad sells that second home, that might provide some money to go towards education…but they will have to pay taxes on their profit.</p>
<p>It does sound as if the OP’s parents will help … I think OP is more disappointed in the way things are & would prefer not to be a burden to his/her parents financially. I think it’s really good to have open communication between parent and child regarding the ability to pay. If the parents believe they can somehow do it … understanding the financial aid realities … then the child can feel comfortable in knowing that the parents are choosing to do this. Money flies from my wallet these days (in the direction of school & student housing costs), but I am more than happy to do this for my kids.</p>
<p>It is when the financial burden is taken on without the ability to handle it that problems arise. If the OP believes his/her parents might be taking on too much, have a heart-to-heart. If necessary, accept that a less-expensive alternative may need to be the way it is. Remember, doing well in undergrad opens some wonderful grad school/professional school doors. Making financial sacrifices for that kind of opportunity might make more sense.</p>
<p>Be grateful that you do have choices, as others have pointed out (and I do believe that you are grateful). You are truly blessed.</p>
<p>@kelsmom
yup that’s just it. My parents have always said that as long as I work hard and do well, they’ll take care of the financial side of things, and I would expect to do the same for my own children when the time comes. I know that we can pay more easily that a lot of other families, but I also know that it’s definitely a burden. It was a bit of a shock for me that our EFC was so high, but my parents kind of expected it. </p>
<p>Another quick question:
I go to work with my dad every so often, but instead of getting paid regularly, we’ve been savings those paychecks and putting them aside for college. I feel like it’s sort of come back to bite us though, because on the FAFSA it says that I have a $12,000 income, so the EFC adds my contribution and parents’. Is there anyway that I could still put aside money for college but not get penalized for it with a higher EFC? Thanks.</p>
<p>Your parents could set up an account in THEIR name that would have any funds saved in their names. Parent assets are assessed at less than student assets (parents 5.6%, student 20%). </p>
<p>However, if you are earning a salary from your dad, I’m not sure how he could pay you without this being a salary to you.</p>
<p>One of the more savvy posters can correct me but I think if that money gets put into a 529 fund then it gets counted as a parents asset for which the contributing portion is 5.6% instead of the students 20%.</p>
<p>Xposted with Thumper.</p>
<p>OP’s EFC is so high that it won’t make a difference one way or the other. What’s $5000 in the scheme of things in this particular case? It won’t bring the EFC down to < COA.</p>
<p>Every kid out there who works summers, after school, weekends is in the same situation. But part of the reason they are working is to have money for college. Not surprisingly, the government and colleges expect them to spend it on college.</p>