Hi everyone,
Thank you for the support and advice given on this thread. DH and I re-did the math and DD would have to take out $90k in loans (not $50k) to finish at her current school (a T5).
DH and I think it’s definitely worth it for her to stay. DD does not. It has been a big source of tension for the past afternoon.
Check and recheck your financial aid application forms for accuracy.
Talk to the financial aid department to find out why your family contribution has jumped so much. They should be able to explain.
I wouldn’t have any additional discussion with your daughter until you have done the above.
Will her college allow her to take a one year leave of absence? Could she earn even half of the amount for her remaining three semesters? I would be very clear that she needs to contribute, and take the student Direct Loan as well.
And lastly…once this is sorted out, if she really wants to leave this school…you need a very detailed plan if what she plans to do instead of attending college this fall. Very detailed.
If she took a leave of absence, she would still have a semester of eligibility left for financial aid for the final semester - at least at many schools. It also does open up more possibilities for transfer as 3 final semesters is more likely then 2. I hope there’s an error and she can finish her degree where she is. I think right now everyone is extremely emotional and there’s a lot to be said to waiting until all the facts before discussing much more.
Totally. I’ll update this thread in a few weeks, but until then, I’ll just keep my fingers crossed.
Did your daughter earn a lot in 2020? Colleges expect a large percentage of student earnings to be applied to cost of attendance, after a set aside.
Not at all.
May I respectfully suggest you take a day’s break and then look at all this again?
This is understandably a very difficult situation for your family, and emotions are running high. But seeing that you misstated many key points (amount of loan required, how many semesters remaining, whether there are existing loans) - I am guessing, due to being very stressed - right now may not be the best time to file an appeal. Take a day or two (the FA office will be closed for July 4th anyway), and then approach this with a fresh mind on Tuesday.
Really hoping this works out for you. 
Like everyone else, I hope this is an honest mistake by the FA office. However, one suspicion I have is that the dramatic reduction in FA could be the result of a significant increase in the value of your rental property (at least the school thinks it has), particularly if the property is in an area of high home price appreciation. AFAIK, no college ignores equity in secondary home or rental properties.
Your daughter may be upset (and we all would) with the sudden increase in CoA, but not graduating shouldn’t be an option. Well-endowed tippy top schools are all willing to do almost anything to make sure their students graduate. My guess is that the worst case is probably the school lending your daughter a highly subsidized private loan with very favorable payment terms to complete her degree (and I’ve seen it happen).
Could you tell me more about this? I was under the impression that she’d have to get a private loan subsidized by a private lender like Discovery. But the school can do it instead?
If the school does this. Not all colleges provide loans from their own funds. They just don’t.
I agree…take a break.
I think this might’ve been what happened. Our rental property is in one of the most expensive cities in the US, and the value did go up.
I’ve seen these types of colleges have arrangements with some of their donors/sponsors to provide such loans at well below market rates and terms.
Certainly not all colleges, but at least a few tippy top colleges do. Hopefully, the college OP’s daughter is attending is one of them.
Isn’t one of the issues that this student doesn’t want to take a loan? If that’s the case, a loan by the school is still a loan. She will still have debt when she graduates.
She doesn’t want to take a loan, and she doesn’t want to contribute any of her earnings towards college costs. When the dust settles in a few weeks, perhaps these two issues can be addressed.
Yes, it’s still a loan, but it’s a loan that’s priced well below market (and likely much less onerous than most other types of loans).
A T5 school is going to want to figure out a way for your daughter to complete her degree. These schools care tremendously about graduation rates and student satisfaction, and they have the resources to help students. I don’t mean that they will revert to your previous FA package if they calculate otherwise, but they likely will try to figure out a plan that will work for your daughter. It may make sense for her to be privy to those discussions because she may see that the school isn’t trying to be the bad guy.
Has she been struggling with any mental health issues or something academically that might have led her to react so dramatically?
She is a rising senior with 3 semesters left? I am confused. Why doesn’t she want to contribute her earnings toward costs?
ok.
so you have this new-found equity in your rental. and it is possibly causing your daughter to have to take out loans. Maybe that’s why she’s mad; you have equity, but aren’t cashing in on it to help her?
Maybe you all could split the difference?
We are not taking out a HELOC. No way.
There is nothing magical about a T5 school. A student doesn’t automatically earn a huge salary just by graduating from HYPSM. You think $90k is worth it, but if she doesn’t want to be in debt for possibly decades to come, that is completely within her rights. Maybe she would rather find a less expensive college and be less in debt at the end of it. Maybe she wants to have enough money for going out, vacations, paying bills, and a home someday.
If she got into a tippy top school, it seems she is likely talented enough to succeed at any college she attends. She will likely be able to earn a good salary as a grad from any college.
We see posts here on CC regularly in which people cannot afford the college they were accepted to. Your daughter appears to be in a similar situation now, even though she wasn’t before. Appeal, but if the FA office doesn’t change your EFC, it might be best to let her transfer elsewhere with your blessing. A T5 school isn’t a good reason for a student to be saddled with $90k worth of debt for an undergrad degree.