FA $100K income after going out of business

Paying for College
1

<p>I had a small business with my wife but with the economy we closed it in 2010, sold the house to pay for debt, we're renting right now, and have $90K left to pay for a down payment in the future. (I don't have any other asset, all is gone)
I was lucky to get a job, I'm making about $100k, my wife is still unemployed.
My oldest daughter is going to college in fall 2012, she wants NYU or BU, if she's accepted, what order of magnitude in FA can she get with this info? (income and assets?)
Are those schools a crazy idea with this economic view? Will the $$$ for the down payment be gone to pay for college?</p>

<p>Your tips and advise are greatly appreciated.</p>

<p>Thanks.</p>

2

<p>NYU is well-known to be terrible with FA unless your D is at the tippy top with her stats. I’m not sure about BU. </p>

<p>Honestly though, with $100k income- you’re not going to get good need-based FA anywhere but the most generous schools. Your daughter should probably look at schools that would give her good merit-based scholarships.</p>

3

<p>NYU gives terrible FA.</p>

4

<p>As mentioned above, NYU is terrible with FA. They are notorious for expecting students/parents to take out HUGE loans…often leaving students/parents with $100k+ in debt. … a terrible idea.</p>

<p>BU is not great with aid either.</p>

<p>Most schools cannot meet need…so at most schools you’ll have to pay for MORE than your EFC…this includes schools like NYU, BU, etc.</p>

<p>Also, some schools use CSS Profile to determine “family contribution.”.</p>

<p>You also will have a sizeable EFC no matter what. With an income of $100k, your EFC will be about $22-25k per year. If that $90k is still in savings at that point, that will also raise your EFC. There is an assumption that parents have been saving for college.</p>

<p>All schools except HYPS will expect your family to pay a LOT. HYPS might only expect your family to pay about $12k per year or so. </p>

<p>It sounds like you’ll have to “talk turkey” to your D about money. Give her a firm amount that you can pay each year. </p>

<p>If you know that you can’t pay anywhere close to $20-25k per year, then your D will have to be very careful as to which schools she should apply to. She can have a few “maybe” schools (like NYU) just to see…but since those likely will not work out, she also needs to include a few schools where she would get enough merit scholarship money that you can afford to pay the balance. </p>

<p>For instance, if you can only pay about $10k-15k per year, then likely your D is going to need a full tuition scholarship so that your contribution can pay for room, board, books, fees, transporation, etc. </p>

<p>What are your D’s stats? </p>

<p>What is her likely major?</p>

<p>And, how much can you contribute each year.</p>

5

<p>Thanks mom2collegekids,</p>

<p>Here is the info</p>

<p>ACT 28
GPA 3.5
Weighted GPA 4.3
IB program</p>

<p>She wants journalism/communications</p>

<p>I can pay 15k per year with big effort</p>

<p>What do you think? Your advise is greatly appreciated.</p>

6

<p>Try Grinnell College or some of the smaller we endowed LACs where you can actually talk to the financial aid people who really make the decisions. At first blush and without any other info, I would say that you should take NYU and BU off of her lists as I don’t think the $15K you can contribute is going to make the numbers work. Best of luck!</p>

7

<p>Where do you live? I would think your state flagship will be her best bet, financially. Her stats are very good but not supremely good; she’ll be in that hard spot where she’ll get in a lot of places but not necessarily at a merit level…though if you look at some smaller privates that aren’t top-tier, they may offer good merit. Still, to get down to 15k is going to be tough. Though if she works during school/breaks & takes some loans, that will help.</p>

<p>Are there schools she can commute to from home? That will be much cheaper. Some of my kid’s friends go to the local U and lived on campus freshman year to get that campus immersion–then commute the rest of the time, after they have made social connections, etc. </p>

<p>Good luck to you and your daughter.</p>

8

<p>Meant to add, there are some state schools with excellent journalism programs. I hope you live in a state that has one. Fingers crossed for you.</p>

9

<p>*ACT 28
GPA 3.5
Weighted GPA 4.3
IB program</p>

<p>She wants journalism/communications</p>

<p>I can pay 15k per year with big effort</p>

<p>What do you think? Your advise is greatly appreciated. *</p>

<p>Your D’s stats are good, but not high enough for BU or NYU to give her merit or a “preferential package” (that’s what some schools give to students that they really want because of stats). </p>

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

<p>You need to have an honest talk with your D that NYU and BU will not likely be affordable. It is HIGHLY doubtful that NYU would be affordable. </p>

<p>It’s best to get these things “on the table” before your D gets her heart set on something that just won’t be affordable. </p>

<p>Your EFC will likely be more than $15k, so that will also be an issue. Tell your D that that is what you can barely afford. (I would suggest saying a number less than that because there are other expenses involved with college that you’re probably not considering. We spent a small fortune just moving our son into his housing last week…our hotel costs, transportation, restaurants, trips to the Target, Bed, Bath & Beyond, etc, etc, etc. </p>

<p>Once you give your D an amount that you can spend, tell her that anything more will require scholarships (and that won’t likely happen at BU or NYU).</p>

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

<p>Is she going to test again? Did she take the SAT? If not, she should…some do better on that test. </p>

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

<p>For your D to get generous merit scholarships, she needs to look at schools where her stats are well-within the top 25% of the school.</p>

10

<p>We are in New Jersey</p>

11

<p>You can run your financial information through the current FAFSA formula to get a better idea of what your FAFSA EFC is likely to be. This formula is revised every year, and someone will post the link to next year’s formula when it is released later this fall. <a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf&lt;/a&gt;&lt;/p&gt;

<p>The most important thing though, is to determine what your family limit is. When you, your child, and whoever else is helping pay for her education all understand and accept that limit, you will be fine. Getting to that point is the difficult thing.</p>

<p>Wishing you all the best!</p>

12

<p>New Jersey has some very good publics. I don’t know if any of the lower tier publics in NJ would give merit, but some might. </p>

<p>Your D could also look at some of the lower tier privates where an ACT 28 is well within the top 25%. I also think she should test again and also take the SAT.</p>

<p>I looked at Ramapo’s stats, and they don’t report an ACT, but their SAT reports suggest that an ACT 28 might get some merit (if Ramapo gives merit…not sure about their policies).</p>

<p>Her stats would be strong for Montclair, Rowan, and Kean.</p>

<p>Her stats are strong for Monmouth, but since it’s private, she’d need a largish merit scholarship. </p>

<p>If your D could get a free tuition scholarship somewhere, then your $12k-15k contribution could cover room, board, fees, books, transportation, etc. </p>

<p>Her stats would need to be higher for merit at CONJ.</p>

<p>Your EFC and “gapping” is likely going to be the issue. Gapping is the amount you have to pay that is over the amount of your EFC. Most schools gap. The top schools (except NYU) don’t gap, but higher stats are needed to get accepted.</p>

<p>Your D won’t be able to take out a student loan to help with your EFC or gap because there will already be a student loan in her FA package to help cover need. That’s often a surprise for people who had counted on their child helping with the EFC with a student loan. </p>

<p>Your D’s FA package will also likely include work-study to help pay for the “day to day” expenses involved with college life.</p>

<p>Are any of the small Catholic colleges OK? Some of the smaller ones might give her generous merit.</p>

13

<p>We visited St Johns College in Annapolis last week. They are a needs blind admission college. They are in the 50 k range but the maximum loan you will walk out of there with after 4 years is 22K. The rest of your “need” (as determined by them) will be grants. It is not for everybody but I wish I could talk my daughter into it. </p>

<p>I am a financial advisor. I have been told you could bury your cash in cash value life insurance or a non qualified annuity and that is outside the fafsa formula. I have not personally worked a case with that modification but I have been told that. Use a no surrender charge product from vanguard. You may want to play around with the numbers on that fafsa website noted above.</p>

14

<p>^^^</p>

<p>St. John Anapolis doesn’t promise to meet need.</p>

<p>“need blind” does NOT mean that a school will meet need. All that means is that the school doesn’t consider need when it comes to acceptance. Huge difference!</p>

<p>St John’s FA does give grants, loans, and work-study…but it does NOT promise to meet need. According to their website, they also use Parent Plus loans & private student loans to meet need…that would be situations when more than $22k in student loans is needed.</p>

<p>It is misleading to suggest that someone would only have up to $22k in loans, when there might be Parent Plus loans…or loans to help cover an unaffordable EFC…which the OP will likely have.</p>

<p>* </p>

<p>Types of Assistance
In addition to grants from the College, students may also receive Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, Federal Stafford Loans, and can participate in the Federal Work-Study Program. **A variety of private loan programs are also available to students and parents to cover the student’s need.</p>

<p>**</p>

<p>How to Apply
To be considered for any of these forms of assistance, you must file the appropriate forms prior to the deadlines, and promptly respond to any request for additional information from the Financial Aid Office. ** Aid awards are made to applicants on a first-come, first-served basis, **so it is important to complete your application for financial aid as early as possible.
*</p>

15

<p>Have her look into joining the military, it’s not for everyone. Going to school full time and being a reservist works great for college students . She will be able to attend school paid for by federal and state tuition while getting a check from the military. Depending on the branch and the occupation she chooses she might be eligible for a sign on bonus. The Airforce is very school friendly and more like being a civilian than being in the military.</p>

16

<p>

Until you get deployed to Iraq or Afghanistan.</p>

17

<p>Or Thule, Greenland, 750 miles north of the Arctic circle.</p>

<p>One wonders whether the poster has actually been in the Air Force.</p>

18

<p>As compared to other branches the Air Force is very school friendly. From what I understand a member in the AF needs a certain amount of school before they get promoted. You can actually squeeze in some school during a deployment. Some bases have professors on site.</p>

19

<p>I haven’t been in the AF but I’m a prior service Marine.</p>

<p>~Kregowiz’s Dad</p>

20

<p>^ True for post #18. There are expectations for education as part of the promotion evals and the AF does a good job providing opportunities to do that.</p>

<p>Retired AF</p>