<p>The balance in your mortgage won’t matter at all. However, any equity your parents have in their home could. Some of those Ivy schools assess primary home equity as an asset. Your $350,000 in savings…if that is regular savings, and not authorized retirement accounts like tax sheltered annuity accounts or individual retirement accounts, will also count towards your family contribution.</p>
<p>With $180,000 in income, your contribution on income alone is likely higher than $50,000. Add in the savings, and you are looking at an additional $19,000 or so depending on how the school counts savings assets. Your family contribution seems like it will be in excess of the cost of attendance.</p>
<p>But I am not a financial aid officer. Apply and see what happens. Just be prepared to walk away if the money you need is not forthcoming.</p>
<p>To answer your question…families with the income you are quoting either can pay the price, or their kids need to hunt for schools with merit aid to soften the blow.</p>