We make just over 150 K, our apartment is worth over $2 million (bought 25 years ago in NYC). Any chance at Financial Aid from a good LAC or should we just assume we’re not getting anything? Happy that $ goes to more deserving students but trying to figure out how to make this work for our Junior and what to consider. No other kids in college (yet). Thanks.
@bklynkids This will depend entirely on the school. Some merit scholarships require the FAFSA to be filled out anyways. No matter what you should always fill the FAFSA out.
It is going to depend upon where you are looking. Some small schools offer merit based aid, some do not.
We ran the NPC on Bowdoin, Colby, Wellesley College, and a few other similar schools in the Northeast and found that it predicted that we would be full pay at all (which is tough with an income of $150k). One daughter was offered merit based aid from Bennington College that would have brought the total cost of attendance down to $40k per year. I have heard that there are LACs in the south and midwest which give significant merit based aid.
We also found very good small universities in eastern Canada for which the total cost of attendance for an international student is about the same or slightly less than our in-state flagship public university (ie, a total cost of attendance in the low to mid 20’s in US dollars). Merit aid has brought the price down a bit from there.
Have you run the NPC on any LACs that you would want to consider?
Doesn’t seem to show we get anything so far. We have a lot of retirement…but that shouldn’t count?
Your retirement money is qualified retirement accounts is not used.
But the contribution to tax deferred accounts you make in that tax are added back in as income.
Does your $150,000 income include your retirement contributions? Is that net or gross income?
What is your annual gross income?
Unless you want to take a chance that you are leaving money on the table, make no assumptions. The standard, easy answer to this question is: it all depends on the specific school and your family’s particular situation.
If you’ve been working hard and saving consistently, you’re going to get punished in the Financial Aid department. It sucks.
Nobody is getting punished. Kids whose parents have not saved at all do not come out better than kids whose parents have saved. Why? Because most colleges in the US do not meet full need, so whether you need 5K or 50K to afford it is irrelevant. You’ll get a Pell if you are eligible (that’s a federal entitlement program) and your kid will qualify for the federal loan. Period, zip, nada. If you have savings you can divert to college, your kid is MUCH better off than someone who does not.
OP- what assets do you have besides the apartment?
Could you please answer my questions too?
It’s really impossible to give you decent information without these answers.
Have you run the net price calculators for the schools you are interested in??
Is that $150k your net or your gross? Does it include your annual retirement contributions?
Do you own a business or take any business deductions?
How much do you have in NON-retirement protected savings/investments (protected savings would be IRAs and 401ks/similar)
A NY apartment worth over $2M would have very high property taxes, wouldn’t it?
Also…you seem to be solely concentrating on “need based aid”…why is that?
Are you aware that your kids could get merit based aid at a variety of schools? If so, why aren’t you pursuing any?
Please answer the Q’s so we can really help you.
Hmmm… you think that you might get a “little aid”, so it appears that you’re willing to pay at least most of the costs…maybe willing to pay $50k-60k per year? Yes? Now? How much are you willing to spend each year PER child?
Do you have any college savings for your kids? How much IN TOTAL do you have in college savings for your kids?
I’m having a hard time figuring out how you could afford to pay the property taxes on that home in NY (and any other local taxes,) and pay income taxes and FICA, contribute towards retirement accounts, support your family, AND pay a decent amount towards college…all on a gross income of $150k
They could be borrowing on the apartment/condo. There also may be some 509 funds. Also there could be untaxed income.
Only the OP knows for sure.
Seems like the “if only we were poor enough to get financial aid” silliness comes up over and over.
You need to find:
- Colleges that do NOT use primary home equity in their calculations and are very generous providing need based aid to all. And yes, there are colleges that won’t count your primary home equity at all. Of course, their acceptance rates are...below 10%.
- Is this N.Y. apartment your primary residence? If it’s NOT, then all bets are off because the equity WILL be counted as an asset....everywhere.
- If your student is really a competitive applicant for those very generous schools that meet full need without counting home equity....then your student should also be applying to colleges where there is GUARANTEED merit aid, or merit aid that the student would be highly likely to receive.
- The FAFSA EFC does not count primary home equity at all...so have your kid apply to some colleges that use only the FAFSA, and nothing else that asks for primary home equity. University of Chicago would be a good suggestion.
- If you can pay all but $20,000 of the costs to attend a private college...then you can pay over $40,000 a year, right? There are PLENTY of colleges out there where the cost to attend would be below $40,000 a year. Start looking for those. Start with the SUNY schools...Bing and Geneseo both attract some very smart students from all over the place. And they would be a true bargain for your family.
I’m a little flummoxed over your finances. If you have a gross income of $150,000 a year…you certainly are not bringing that home each year. Between state, federal and local taxes, and your property taxes, your actual take home is far less than $100,000 a year on a gross $150,000 annual income.
Do you also have some college savings someplace? If so, and you think you can pay any amount out of current earnings…try putting that amount aside for 6 months or so. So if you think you can pay $4000 a month…put $4000 a month in a dedicated savings for six months. See if you think that will be sustainable for 4 years.
I think you mean 529.