<p>The asset question will be eliminated for FAFSA 2011-2012. There is an asset cap of $150,000 though for Pell grants/stafford/work-study & they have no idea how to enforce it if the FAFSA asset questions are being dropped !</p>
<p>Anyway this bill, SAFRA 2009 passed the House on Sep 17 2009 in a partisan vote; it still needs Senate approval, but the fight there is more on the direct lending that the Republicans oppose on “principle”, even though the non-partisan CBO estimates direct lending will save the taxpayers $80 bil over 10 years.</p>
<p>Anyway I hope this bill passes as it would help mitigate unfairness for middle-class savers vs others who choose to live in large homes/large retirement savings/buy expensive cars & appear poor on the current FAFSA, even though they may have the same income !</p>
<p>N&MsMom, in the federal financial aid formula the 529s will be regarded as assets, but only at 5.6%, if I recall. So, not too bad, and you’re certainly better off with them than without them. Private colleges have their own individual ways of reckoning income and assets, though, so it could be factored differently there. (It’s not atypical to see them divide the balance of a college savings account by 4 or 5 years and consider that fraction available for the current year.) Also, private schools look at home equity differently. One may count it heavily, another far less. You may find it won’t be as bad a hit as you fear.</p>
<p>I get the sense that you’re mad at “the government” about the way your income and assets is going to affect your aid eligibility as far as paying for college goes, but it’s really the policies of the private school(s) that you’re dealing with.<br>
The federal government (and some states) actually makes very little aid available even to the poorest students. A full Pell grant will about get a kid through a year at the local community college assuming s/he can live at home for free.</p>
<p>Since I’m a California native, a UCI grad, and Cal State Fullerton was practically in my backyard (siblings went to CSUF, UCLA, San Diego State, and CSULB), I’m very familiar with both systems, their differences, and the “prestige issue”. </p>
<p>However, I can’t really think of many professions that there isn’t at least one Cal State school (which includes the Polys) that wouldn’t be able to provide a fine undergrad degree. </p>
<p>I wasn’t recommending a Cal State for the OP (he has other options available to him), I just mentioned the Cal State system in regards to what would happen to some prospective UC students if the UCs raised tuition by 40%. Some might no longer be able to afford a UC even if their EFC said they could. There are many UC students that could pay less and get a fine education at one of the top Cal States or Cal Polys. Because, again, there aren’t many careers out there that an undergrad degree from one of the Cal States wouldn’t support.</p>
<p><<<<
I get the sense that you’re mad at “the government” about the way your income and assets is going to affect your aid eligibility
<<<<<</p>
<p>He may also be annoyed to find out that F/A for people in his family’s income level isn’t typically free money (as some might think). The OP was relieved that his mom doesn’t work, because he thought that might help his chances at getting F/A…but what chances? Better chances for student loans? It may be better to have both parents working to help pay college expenses, and therefore minimize student loans. </p>
<p>BTW…Do FAFSA or PROFILE care if one parent chooses not to work? I mean…if one healthy parent, who isn’t taking care of a little one at home, isn’t working, does FAFSA or PROFILE think that they should be working to contribute in some way? Someone said that FAFSA and/or Profile sometimes will “attribute” a wage to a healthy parent who isn’t working. Is that true, or, do they not care?</p>
<p>I have read here on CC that if you go in an put in the numbers for a family with two parents, one working, one at home, that the FAFSA makes an adjustment that actually will give that family a higher EFC than another family with two parents working but with the same income (combined) /assets/stats, etc. Likewise you can get a certain EFC for this family (one parent working, one at home) and add some additional income that would be made by that second parent going back to work, and it will not penalize the family with a higher EFC than they had before – assumming the second parent’s income is modest.</p>
<p>I have never run those hypotheticals, but when I run our own family’s numbers we will definitely take a FAFSA hit for 2010-11 because of me going back to work after many years of being a stay-at-home mom, even though I only worked part-time and will only make between 6-7K for the year. Both my kids will lose their Pell grants (they were only getting partial ones because we were close to the EFC cut-off for that) for starters.</p>
<p>I don’t think my going back to work is going to net us much of anything. It’s okay because I needed to get back into the work force anyway, but for someone who still has family or personal reasons that make it meaningful for them to stay home, I’m not sure they should run out and get a job until they check their own numbers first.</p>
<p>As for the Profile – they don’t attribute a wage or do anything else with those numbers except provide them to colleges. At my son’s private, according to their online calculator, our expected contribution will go up with my modest earnings added in this year. So, no, I’m sure they were not attributing a “wage” to me when I was not working. Nor do I think a hypothetical wage should ever be attributed to a non-working spouse. There is no way for colleges or the government to consider what people should be earning, why they’re not earning – families and individuals’ lives are far too complex for that. What they should do (and actually seem to do, in my experience) is look at what resources are available to a student, and that’s all.</p>
<p>I’ve read most of the posts in this thread and they have been very helpful, but my situation is a little different. I could use some advice:</p>
<p>I have worked overseas for the U.S. government for the past 25 years. Because of this I can no longer claim residency for tuition purposes in any state (not that uncommon among Americans who have lived abroad for a long time). We bought a house overseas and are in the process of selling it (no more mortgage), because we will probably move back to the states when S3 graduates from high school in 2011 (he currently attends an American high school on a military base). </p>
<p>Our house, which previously didn’t effect my EFC on the FAFSA, will soon be worth a fair amount of money in the bank. We want to use this money to buy a house in California in 2011. Will I be penalized for having this money I gain from the sale of the house in my bank? We are currently living in a rental house.</p>
<p>I have worked hard all my life to save - that’s why we were able to pay off the mortgage on our house. We drive two very old cars and have very few expenses. Most of what I have earned has gone towards the house and saving for college (I have two other children, both in private colleges in California). I make about $80K/year; my wife works part-time and will make about $5K this year.</p>
<p>Maybe I should take our house off the market. I just hate to be penalized for turning our house, which previously didn’t effect my EFC, into cash, which could have a big effect on our EFC.</p>
<p>Any thoughts, ideas, suggestions? I’m not trying to game the system and if you could see my wardrobe, you’d know I’m not one to lavish expenses upon myself! Thanks.</p>
<p>I know that we make slightly less than 150k and have only about 12K in assets and the EFC for us was 44K which is completely impossible. Fortunately, we now have the GI Bill and we decided to let our middle have it who will be going to college in 2011. We hope she goes to a college where her GI Bill covers more than the cost and we will have an arrangement with her that extra money comes back to us to fund her younger sister. Then for number three, we hope to have dh retired and getting retirement income, getting paid at least as much as now, and have some savings from number two. We also think number three has more chance for merit aid as she is a mathy/science girl who wants to do engineering and scores really well in math but is also a extrovert with great people skills.</p>
<p>We hope she goes to a college where her GI Bill covers more than the cost >>></p>
<p>How would that work? They now pay directly to the school, up to the cost of the highest in-state tuition rate. They don’t pay any overages and any merit aid and scholarships are first deducted from the total. Unless you are hoping the BAH rate will exceed the cost of room and board?</p>
<p>Yes the money from your house will affect your EFC as it will now be an unprotected asset. For FAFSA unprotected assets over the protected aset allowance win increase your EFC by about 5.6% of the value of the asset. The exception would be if you qualify for the simplified needs test (income below $50k and meet other criteria such as being eligible to file a 1040a or 1040ez). It is the status of the money as of the day you file FAFSA. So my only suggestion would be to watch your timing - don’t complete the sale of the house until after you file FAFSA or complete the purchase of a new house before you file FAFSA.</p>
<p>My Ds first choice is a private university in PA, but I’m afraid she’ll have to go to our in-state public college where we can afford full price. </p>
<p>If I go on one more college visit and am shown their rock climbing wall and juice bar in the new athletic facility - I will scream!
<<<<<<<<</p>
<p>What are your D’s stats? If her stats are high enough, she may qualify for some good merit at some schools.</p>
<p>Why do the juice bars in the rec centers make you scream? Wouldn’t the be self-supporting?</p>
<p>For those of you complaining about assets affecting financial aid. What happens if you have a retired dad in his 60s whose only income is Social Security (the max is probably about 2000 per month). Meanwhile he has millions of dollars in retirement funds he’s accumulated over the years and a paid up house. Should his kid be entitled to any financial aid for college?</p>
<p>I should have been more clear about saving accounts and the affect they have on FA. I am looking for the information I had found, but I remember it saying that savings will be excluded from the FA process within the next few years and that is a definite thing. As soon as I have time to find that information again, I will post a link.</p>
<p>I know that some top tier schools meet 100% of finaid for different familys of different income. BUT I also heard from someone at Princeton that the aid package reduces if the student gets merit aid from other sources. Like if he got a $1000 merit scholarship, Princeton would consider that more ability for that person to pay and thus lower their finaid.</p>
<p>If true, should I even go for merit aid from outside sources if the net effect is 0??</p>
<p>If you get accepted to a school that meets your full need without loans, and does not expect you to contribute a certain amount from summer earnings or workstudy, then I think there really isn’t much incentive to search for outside scholarships – because it would just deplace aid you’d already be receiving.</p>
<p>However, I don’t think there are any colleges, even the wealthiest ones, that don’t expect some contribution from summer earnings or workstudy from their FA recipients. I could be wrong about that.</p>
<p>The other thing is, if your college meets full need without loans, but <em>does</em> expect some contribution from summer earnings or workstudy, you need to ask them if outside scholarship money would go toward that earnings expectation. At some colleges it does, at others they still want you to contribute at least that much regardless.</p>
<p>It’s always good to go for merit because that isn’t affected by income. FA could be lowered in future years if your family’s income rises…but your merit will stay as long as your grades are good</p>
<p>Merit can also reduce loans in F/A packages.</p>
California native, a UCI grad, and Cal State Fullerton was practically in my backyard (siblings went to CSUF, UCLA, San Diego State, and CSULB), I’m very familiar with both systems, their differences, and the “prestige issue”. </p>