Fa Sucks

Colleges and Universities A-Z Cornell University
61

<p>I think that:</p>

<p>Cornell should standardize a family's assets and ability to contribute, according to where they live.</p>

<p>A more complex version of Z = (x - mu) / sigma
If the cost of living in Podunk, Wyoming is 30,000 (made up number) a year and your parents are making 40,000 you are in good shape there.</p>

<p>But what about the family that makes 40,000 in Los Angeles, where the cost of living is 50,000 (made up number) you are not in the same situation.</p>

<p>And with Median Home prices drastically different depending on geographic location, a 250,000 dollar house in Podunk, Wyoming is very different from a 250,000 dollar house in Los Angeles.</p>

<p>So while on paper these two families make the same amount, and own the same dollar amount of property, they should in no way be obligated to pay the same amount for tuition.</p>

<p>I don't think this is such a hard concept, and I don't think it's an unfair one either. I think context is of absolute importance, and I highly highly doubt that the current financial aid policies reflect something so basic as this.</p>

<p>So yes, while we were not obligated to attend Cornell, that shouldn't limit Cornell in trying to improve their policies in order to be more competitive with peer schools. If Cornell sticks with this attitude, with massive inflation, and rising costs of living, Cornell will lose plenty of great students to lower tier schools who can provide Merit Based Scholarships.</p>

62

<p>you dont think they use indexes based on states?!</p>

<p>besides they do ask for mortgage and stuff like that on finAID...</p>

63

<p>I didn't read the entire thread, so this might have been posted, but loans are being capped, starting this year, at 3,000/year for students whose families make between 60,000 and 120,000. </p>

<p>Cornell</a> Caps Loans for Those in Need | The Cornell Daily Sun</p>

64

<p>If they do use indexes based on states, it surely doesn't show.
And that in itself is flawed, a state might only have one metropolitan area, and thus have an artificially low index for people living in that metropolitan area.</p>

<p>And what does a mortgage have to do with anything?
They use property values because they want you to use the equity in the house to take out a loan. What a great way to promote financial responsibility among college students. That's a great message, "don't settle down, don't find a nice house, don't pay it off for the better part of your entire life, and don't put any money into making it prettier, because if you do, you will have to pay more for your children's college tuition."</p>

<p>They also ask for retirement plans and from my memory, they also ask about life insurance policies and health insurance policies on the CSS, while I don't see how this is relevant. Do they expect one to kill one's parents in order to cash in on their life insurance benefits?</p>

<p>And Spanks, while yes, loans are being capped, they are not doing anything about reducing parental contributions.</p>

65

<p>Still, it's better than it was for previous classes. Since they've reduced the maximum debt for these people to 12,000 for four years, maybe some people will feel more comfortable taking out loans to bridge the gap between the cost of attending and what their parents can afford. This would have been more difficult if your loans had not been capped at a pretty reasonable level.</p>

66

<p>That what I don't understand, why don't they do something about parental contributions?</p>

67

<p>I'm fairly certain they take cost of living into consideration by metropolitan area, not just state.</p>

<p>They don't do anything about parental contributions because they feel that education should be financed from a variety of sources -- the student, the family, the state, and private sources -- and at the end of the day, assuming no mitigating factors, a family must be responsible for some aspect of the student's education. To do what Harvard is doing, and not expecting any family contribution whatsoever, is irresponsible, if you ask me. As it tells parents and families that they shouldn't work harder to better provide for their child's education and their own well-being.</p>

<p>If a family of four making $50,000 a year and with $100,000 in relatively liquid assets cannot figure out a way to pay $5,000 for their child's education, some might say tough luck. But others might consider it an opportunity to rethink the family's work and consumption. There is a lot of very unnecessary, conspicuous consumption occurring in America these days.</p>

<p>And I think you are being naive by suggesting that a mortgage, equity in a home, and life insurance policies should not be considered in financial aid calculations. Shouldn't families who hold more tangible economic assets be asked to pay more than families who don't? I don't think you would object to a financial aid office pointing out $500k in a non-retirement brokerage account, so why should you object to the financial aid office pointing out an additional $500k in home equity? The same thing goes for an attractive whole life insurance plan, which you can borrow against as well, and functionally pay yourself back.</p>

<p>Also, Cornell does not touch any retirement money that is already in a retirement account. It only considers money that is being apportioned to a retirement account in lieu of paying for college.</p>

<p>When I was a student, I received a small amount of financial aid, but was limited in what I received due to the fact that my family had inherited a second property valued at over $200k, which Cornell treated as a possible source of tuition. I thought it was unfair at the time, and had to take out some loans as a result, but in hindsight, it was completely fair. My family had more wealth than other students, and we were asked to pay more as a result.</p>

68

<p>how many students at harvard come from families that actually make less than 60k? probably less than 5% of families?</p>

<p>i'm sure cornell has more kids that come from families that make less than 60k/year...</p>

69

<p>It doesn't help that our student population is so much larger, and that we have the land grant schools that offer in state tuition. I think we should be spending a little more money on Fin Aid and restrcutre how the program is. I think a good start would be to remake the website with helpful tools and GOOD explanations. Seriously, Stanford's financial aid website is amazing.</p>

70

<p>May I join this conversation and ask what is a typical student contribution in an aid package for a freshman, counting both summer plus school year earnings? I'm a parent whose student will receive no aid because of a divorce situation. I have worked full time during my student's entire life, but I make 25% of the total parental income used to calculate the EFC. My student's other parent, who makes 75% of total parental income and has done so for 20 years (hence far greater assets), refuses to contribute more than 24% of our child's costs. Thus, I am stuck. I cannot really pay our EFC, but still want to ask a fair contribution of my student, who has also worked hard and saved. I will liquidate assets to pay the rest. Thanks, and best of luck to all of you.</p>

71

<p>ParentalUnit- Have you talked to the finaid office about the situation? Perhaps they will give your student more aid.</p>

72

<p>Parental Unit, the same thing happend to us kind of, my parent had to write a letter about the other parent not contributing, and they lowered the EFC.</p>

73

<p>hpmbs--no, I have not spoken with FA. I have certainly thought about it. One attorney friend suggested I present them with documentation of the disparities, i.e., the court order showing the limited amount the other parent is ordered to pay, my income and the costs of Cornell. My income alone would qualify for aid. I notice some comments in which people have negotiated with the aid office. Is this often successful? Thanks</p>

74

<p>Hi ParentalUnit...</p>

<p>I had a friend who was in a similar situation...his father abandoned the family and so they couldn't even find him when it came time for college. They filled out some paperwork and provided documentation. He got a very generous aid package with few loans.</p>

<p>I appealed my FA package every year I was at Cornell and they met my needs every time. </p>

<p>I had no savings and earned around $5,000 each summer...my student contribution was around $2,500 each year.</p>