Financial Aid Question

Paying for College
1

<p>Hello,</p>

<p>I am an admit to the Stanford class of 2017 and I need some guidance after reviewing my financial aid.</p>

<p>According to the fin aid award letter, my family responsibility is $9,553 and the student job contribution is $2,800 each year.</p>

<p>My family situation is a single parent household, and parent makes $50,000 a year.
(However, we do own our house and have a good amount of money invested and in savings, perhaps this was taken into account?)</p>

<p>According to what I read here on</a> Stanford's website
[quote]
Total undergraduate charges will increase to $56,411 next year, including $42,690 for tuition and $13,166 for room and board. For undergraduates from households with incomes of $100,000 or less, tuition would be fully covered by financial aid under the university's financial aid program, now in its fifth year. Those with incomes below $60,000 pay no tuition, room or board.

[/quote]
</p>

<p>Now, the total expenses are $62,219. So, from what I understand, my family should only be responsible for paying $6363 per year, plus a $2,800 job during the school year.</p>

<p>I know it's only a $3,200 difference per year, but that adds up to $13,000 in four years.</p>

<p>My question is why does it factor in part of tuition/room & board for my EFC?</p>

<p>Should I ask the financial aid department why this is, or just be grateful for what I've got?</p>

<p>Thanks!</p>

2

<p>

Yes it was. </p>

<p>

I would guess that your parent owns a business and some deductions were added back in as income, but that would just be my guess. You should contact Stanford to answer your question.</p>

3

<p>You certainly should talk to Stanford and get an answer to your questions. It’s important to understand exactly how they assessed your financial situation. There also could have been a mistake.</p>

<p>I have a friend who thought his son was going to get full finanical aid at Harvard because they fit the general requirement, particularly the income. But he owned apartment buildings that generated that income. He had early retired and put his money in them and his job was to manage them, and the equity built in them was his pension. If he sold or borrowed against any, it would cut down on the family income since they were what were generating this income. Harvard, said, tough luck. No aid. So, yes, assets and do count towards financial aid. Take two families, one with savings and one without, all things equal, the one with savings/assets is assessed a little more than 5% over a certain asset protection allowance. That is not so much to discourage savings, but does take into account that there are assets. Other wise someone with millions just sitting there, doesn’t have to pay for college which would be ludicrous.</p>

<p>But I don’t know how Stanford came up with what your family should pay, and more importantly, YOU don’t, and you should know.</p>

4

<p>I second the above. Call and ask.</p>

5

<p>

</p>

<p>Ah, no, my parent doesn’t own a business or any real estate other than our small ranch house; and parent is a high school teacher. However we do have a fair amount invested in some sort of tax-deductable situation where the money can only be used for education. </p>

<p>While I think it would be doable to attend as is, I think I will wait to get fin aid from other schools and see if there is any significant difference among them. Right now I have nothing to compare their offer to, except my state safeties.</p>

6

<p>“However we do have a fair amount invested in some sort of tax-deductable situation where the money can only be used for education.”</p>

<p>Then that is probably where they are expecting the money to come from.</p>

<p>Sit down with your parent and all of your offers, and run the numbers here: [FinAid</a> | Calculators | Award Letter Comparison Tool](<a href=“Your Guide for College Financial Aid - Finaid”>Award Letter Requirements - Finaid) Talk about whether or not the education fund will cover the bills for Stanford, or not. If there are other kids in your family coming up behind you, find out how much of that fund your parent considers to be yours, and how much is for each of the others.</p>

7

<p>Call and talk to the aid office. It is important to know why the offer is what it is. In case of a mistake, it can be corrected. If it’s not a mistake, at least you will understand the logic behind the aid package.</p>