Financial Aid for future years - Check my math - Please

Paying for College
1

<p>Son is accepted into Northwestern (NU), trying to figure out if he/we can afford it..
I listed our 2010 FA package, and outlooked the future years.
I need some feedback on my math/assumptions.
NU is a full needs school.</p>

<p>Assumed 4% increase in COA every year<br>
Assumed 15% increase in Work Study every year (more hours)<br>
2012 - 50% of EFC due to first sister entering college<br>
2013 - 33% of EFC due to second sister entering college<br>
Assumed NU loan cap of 20,000 for Perkins/Stafford, and would be replace with Scholarship </p>

<p>Year 2010 2011 2012 2013
COA 56,216 58,465 60,803 63,235 </p>

<p>EFC 32,453 32,453 16,227 10,709 </p>

<p>Need 23,763 26,012 44,577 52,526 </p>

<p>NU Scholarship 16,563 17,481 34,667 47,180
Perkins 1,500 1,500 1,500 0<br>
Stafford-Sub 3,500 4,500 5,500 2,000
Work Study 2,200 2,530 2,910 3,346 </p>

<p>I also assume he could make $2,000 each summer, while living at home. Is that reasonable?</p>

2

<p>*Assumed NU loan cap of 20,000 for Perkins/Stafford, and would be replace with Scholarship *</p>

<p>I would ask about that. And I would ask if NU changes its $20k loan cap, would it affect current students.</p>

<p>Congrats. Really good package considering the various EFCs.</p>

<p>Keep in mind that your Ds may not get such fab packages from whatever schools they end up at. Each CSS school has its own way figuring family contribution and its own rules about loans.</p>

3

<p>Well…you are leaving out possible changes in your income and assets…and that needs to be factored in also. Also I believe NU considers home equity so if you own a home, and are paying down that mortgage…that may increase as well.</p>

4

<p>If all the children are at FAFSA only schools I believe your breakdown (100%, 50%,33%) as more enter college would be correct for the FAFSA EFC - not necessarily reflects how each school will see it. However private schools that require the CSS Profile will use the “Institutional Methodology” as follows:</p>

<p>" If two children are enrolled, the IM [institutional methodology] expects the family to pay only 60 percent of the parent contribution for each child; if three children are enrolled, the IM expects the family to pay 45 percent of the parent contribution for each child."</p>

<p>And of course these percentages assume each school meets full need. Be very careful. I would ask the FA office directly. I know my D1’s school requests a form that indicates what costs and aid are for any siblings (verified by the siblings’ school). Then they award aid. This particular school does meet 100% of need.</p>

5

<p>" If two children are enrolled, the IM [institutional methodology] expects the family to pay only 60 percent of the parent contribution for each child; if three children are enrolled, the IM expects the family to pay 45 percent of the parent contribution for each child."</p>

<p>That’s a very good point. I’ve heard that CSS schools expect families to pay more than the family contribution for one child when more children are in school. </p>

<p>I guess their theory is that families should expect to pay an overall larger amount because they should have been preparing for college AND home expenses will diminish when more kids are in school.</p>

<p>For instance, if the expected family contribution is X for one child, CSS schools may think that when you have two in school, you should expect to pay a total more than X. And, that would increase as more are in school. </p>

<p>It would be similar to the idea of sending kids to a private high school. You expect that you have to pay more if you have 2 or more in private high school at the same time. You might get a discount, but the total won’t be the same as having 1 child.</p>

6

<p>I would find out if federal work study awards typically increase each year, and how easy/ possible it is for students freshmen to find a job, and be able to earn their entire work study allotment. Do you know NU’s “official policy” for EFC when there are siblings in college? Will younger sisters be attending a school that meets “full need?”</p>

<p>2k may be doable if there are jobs for college students in your hometown. Have you run the numbers for a minimum wage job for the length of summer vacation? College students sometimes want to stay at school, conduct research, study abroad, or find an (unpaid) internship over the summer. Will your son not be able to do these things if he attends North Western?</p>

7

<p>Re: Work Study…most schools have a maximum work study award. BUT even if that award is given to a student, there is no guarantee that the student will find a job that gives enough hours to EARN that award. DD has a $4000 WS award…the highest I’ve ever heard of. She works at the highest paying job on her campus and still doesn’t always earn that amount per year.</p>

8

<p>Thank you for all the feedback, great things to consider!</p>

<p>EFC reduction - The FA officer implied the 50% EFC, however I did her from another parent more along the line of that NU expects 60% of EFC when second goes to school. Need to discuss further with FA office.</p>

<p>Working during summer - We have saved for a in-state school, but son wants to attend NU.
He either has to work during summer, or pile on more debt (currenlty I think he would exist NU with $30,000 in debt - as an English major). We have told him he wouldn’t be able to study abroad/unpaid internship/stay at school, etc if he choses NU.</p>

<p>I have set aside funding for in-state for all 3 kids, he will need to make up the difference. Younger sisters will probably attend in-state school, not full-need school.</p>

<p>Very good point on the 20,000 loan cap, what happens if they change policy. (it was implemented in 2008).</p>

<p>He received a full-tuition scholarship to Depauw, and I keep telling him to take the money, leave undergrad debt free (with $20,000 available if you work like you will need to at NU - for study abroad, car, …), and we would have $25,000 in his college fund for grad school… He is concerned Depauw is too small a school for him (likes the middle sized school).</p>

9

<p>EFC reduction - The FA officer implied the 50% EFC, however I did her from another parent more along the line of that NU expects 60% of EFC when second goes to school. Need to discuss further with FA office.</p>

<p>Keep in mind that that “might” be NU’s guideline, but it won’t necessarily be the guideline for your daughters’ schools. </p>

<p>See if NU will but the 50% reduction in writing.</p>

<p>*
I have set aside funding for in-state for all 3 kids, he will need to make up the difference. Younger sisters will probably attend in-state school, not full-need school.*</p>

<p>Well it’s a good thing you have set aside 4 years COA for all your kids (congrats! That’s a lot of money!. You are likely to end with quite a gap at an instate school. </p>

<p>*He received a full-tuition scholarship to Depauw, and I keep telling him to take the money, leave undergrad debt free (with $20,000 available if you work like you will need to at NU - for study abroad, car, …), and we would have $25,000 in his college fund for grad school… He is concerned Depauw is too small a school for him (likes the middle sized school). *</p>

<p>That’s a good deal for anyone, but especially an English major. What is his likely career?</p>

10

<p>OP
I would specifically ask what the FA would be for child #1 if child #2 in college has a full ride or a significantly less expensive school. As I said in my previous post my D1’s school asks for a form to prove second child is in college too and HOW MUCH that school costs. Therefore if child 1 is in $55k school and child 2 is in a $22k school then I don’t think school #1 would provide as much FA as the case where both children were in a $55k school. Just trying to cover all bases! I will be there in a couple years but for now it’s just one college and one private high school.</p>

11

<p>I received this response from NU financial aid in regards to how EFC is impacted with 2 and 3 kids in college.</p>

<p>“If your financial situation remains stable other than the number of students in college, you can expect that your family contibution will be approximately 60% of what it is now with 2 in college, and about 35% of what it is now with 3 in college. The proportion of scholarships and loans will remain constant as your aid package fluctuates.”</p>

12

<p>^^^</p>

<p>That’s good news. Now if your other children go to top schools with equally generous aid policies (without big loans), then you can relax. :)</p>