<p>The OP stated that she lives in Fairfax VA and it was the 2 best state schools so I am assuming that she is talking about VATech and UVA. I have no idea what their need based aid is that those two school but it is a high cost place to live.</p>
<p>Anyways OP, like others have said take what they say with a big salt shaker. I have been fed all kinds of mis-information over the years. But I do know how these things are and it’s hard to not feel jealous. Personally I have a hard time fighting that green eyed monster. Just once I would like to spend money without thinking of how I was going to pay for it first. Just once…</p>
<p>I am the OP on this thread. The school in question has a total COA of around $25,000 per year. It did not occur to me that they were lying. Primarily because of the way it was presented. I don’t think they are. This school is very generous and meets full need IF you make under $40,000 a year. The wife, I now suspect, is not reporting her income. She works in an area where she is paid privately by clients. The only way they could possibly qualify I guess would be large amounts of debt. This is the oldest so they have no other kids in school and will not have two in undergrad at the same time.</p>
<p>The comments re “don’t count other people’s money”- I don’t care how much THEY have. It is when they are getting aid that should be going to people who actually NEED it vs WANT it, which was my original point.</p>
<p>I don’t cheat on my taxes either- and don’t appreciate those who do. </p>
<p>I spent a good part of the past 8 months helping some kids whose parent did not go to college figure out how to apply, how to send SAT scores etc. Now I feel like I partially failed these kids because even though all 4 of them got into the schools they want, I didn’t know enough about financial aid to help them. Two of them can’t afford the schools (and yes, one of them is the same school that gave this kid aid) and probably can’t go. Single mom, works at a restaurant, but told the truth about tips and what she had saved for the daughter’s college fund. Her daughter got no grants. </p>
<p>Ok, I am just on a rant and probably giving too much specific info on these kids and wouldn’t want someone to figure out who they are, so I will stop.</p>
<p>tjmom…I know you must feel frustrated. I suspected from your original post that the family that you question was either self employed or had a “cash” paying job. It is a very tough pill to swallow when a neighbor in a high dollar neighborhood gets NBA when it is clear that they could not have been forthcoming. I just tell myself that it is not my job to preach or condemn another person’s moral choices. I know it is hard to look away but it is just one of those “life” issues.</p>
<p>If the person is lying about her income, then it’s a serious issue beyond school aid. That means fraud on tax forms and not paying taxes. The financial aid process now cross checks with the tax forms, so what is so reported is used. The schools can’t do anything about someone who is not reporting income. That’s an IRS and state issue. Debt does not affect financial aid; there is no quarter given to owing a ton of money. The only time it can be of issue is if your home or other asset has a loan against it, since its worth is then net of that loan. </p>
<p>The financial aid process is very income heavy, so yes, if the income is under reported, the need will be greater. </p>
<p>But as I said in an earlier post, you could be very surprised who is being supplemented heavily by parents. There are those living in parent bought and owned homes. I have a friend who lived very well but had basically no income. Her kids got through college on financial aid from state schools that used FAFSA only. A very well to do NCP was on the scene but stayed out of the picture financially while the kids were in college. All done legally, I might add and premeditated. Got close to $100K in money and some subsidized low interest loans to boot.</p>
<p>I’m a bit puzzled that you are upset about the aid that student is getting for college, instead of aghast at all of the years this person might have been getting away without paying state and federal income taxes.</p>
Couldn’t you just refer them to the financial aid offices of the colleges in question and let those experts provide the specific info to them? I think if you got them so far as being admitted, which is a commendable thing on your part to do, at this point the colleges s/b providing the financial aid info to them since it varies with every college anyway.</p>
<p>I’ll give a shout-out to the IRS which I think is doing a better and better audit job just based on the random whining and complaining of people I know. I think it is harder to hide income than it was a decade ago. A paper audit (just being asked to verify or cross reference some items on your tax return which seem out of line or set off a red flag) can be plenty intrusive, but an actual full on, show up with your shopping bags filled with receipts can be hell.</p>
<p>So take comfort in the fact that if these folks are indeed not declaring their income appropriately, it’s only a matter of time before the system catches up with them. The IRS has algorithms about what a typical tax return and financial picture should look like based on zip code, size of mortgage payments, occupation, etc. and at some point, these people may be dumb enough to claim a deduction which sets off bells.</p>
<p>The taxpayers can only hope.</p>
<p>In the meantime, kudos to you for helping kids who don’t have anyone else to help!</p>
<p>There isn’t much one can do in terms of getting or not getting financial aid. It’s based primarily on income. If a family makes so much each year, that is the primary basis for the financial aid. So, if a student you helped applied to a school and the parent made more money than the threshhold for aid, there isn’t anything you can do. Telling them to not report tips or other income, lie on the forms is absolutely not what to do. They did not get aid from those schools because they did not qualify as their income and assets were too high, but mainly income. </p>
<p>Where you could have helped is by helping them find schools where the kids would be likely to get merit money, but frankly, that usually goes over like a lead balloon when a kid is “material” to get into a school with the rating, reputation and recognition that they want. </p>
<p>I, too, think it’s great that you helped these kids as you did.</p>
<p>Well a lot of people, including a lot of colleges, call loans financial aid. I’d just go on the assumption that the friends are borrowing and calling it aid.</p>
<p>Getting too deep into these things can ruin otherwise really nice friendships. Good fences make for excellent neighbors.</p>
<p>Congratulations to your son! Enjoy the end of high school celebrations.</p>
<p>If you report them to the IRS for not reporting income, you even get a reward if a resulting investigation does show that is so, and back taxes are assessed. </p>
<p>The schools are not going to do anything unless the tax returns are deemed fraudulent as they go by them.</p>
<p>Three decades ago when many of us parents on this board where college students ourselves, the average in-state college tuition was one-tenth of median household income. Nowadays it’s one quarter.</p>
<p>For every dollar of of tuition increase now, on average 60% of the increase goes to fund FA, i.e., tuition is deliberately raised for some families so it can be “lowered” for others. A huge bureaucracy machine has sprung up to administer this redistribution. </p>
<p>A few state schools, however, like Iowa have decided to keep it simple and more transparent and has lowered tuition across the board and just FOCUSES ON GIVING FA TO THE POOR, and largely dispenses with trying to figure out who among the middle class are “needy”. </p>
<p>On another thread, a poster described how he/she & mother were living with mother’s boyfriend who is supporting them. The poster was awarded generous FA because mother is unemployed, but is worried about what to do to keep all the FA if mother gets a job and has income: Financial need vs. want, indeed…</p>
<p>I am upset if they haven’t been paying taxes- but since it is just a guess on my part (based on them getting aid), I can’t in good conscience turn them in. If I knew it, I would. </p>
<p>I did help the kids pick schools that they can afford (the local community college and living at home), but the girl and her mom were hoping she could get some grant money. I don’t know what the mom makes, just know it is a historically low paying industry and she mentioned to me that she was careful to report it all and that she has started saving whatever she could from the time her daughter was born. She will go to college, just not get to live away and go to the one she really wanted.</p>
<p>If you turned them in, then what? They have not violated any rules. The FA rules only compute parental & student income. The mother’s boyfriend’s income technically doesn’t count. But this example just supports my gripe that FA determination is a big game.</p>
<p>If the mother has a business, and this business is structured in a certain manner then under FAFSA rules it is not included in family assets. If in addition, the business manages its completely legal accounting in such a way that it does not distribute income, or it holds on to cash…again, it is completely legal to not report any of that on the FAFSA. The cars could be held in the name of the business. So, the family can be quite comfy but FAFSA poor.</p>
<p>The CSS-PROFILE on the other hand will ferret out all these little hidden pockets and count them as either asset or income. A representative from the FA office of an elite(CSS-PROFILE)institution lamented the fact that they had not yet come up with a way to determine if a student has relatives who may be helping with payments. And, how grossly unfair it would be for that student to not report this support as available income or asset.</p>
<p>Funny how totally surprised those who set up a convoluted gaming system are when the participants actually play the game. And FA is a game where savings and living below ones means often do not translate into a reward when it comes to the college years.</p>
<p>Something very important to understand about the FAFSA is that it takes things at face value. Parents with their own businesses - like the mom in question - can legally take deductions against income. Many times, this results in a loss on the tax return. The AGI is then legally decreased by the business loss. I recall verifying a file once, and the EFC was Pell-eligible. I went in to make notes on the file, and I noticed the student’s address. I realized that I knew the mother … she makes quite a bit of money … and the family lives in a very expensive home on a desirable lake in our area. Dad owns a business, and it had quite a loss on paper - thus, the Pell grant. Imagine my surprise! However, they did nothing illegal. </p>
<p>Financial aid is not perfect, and sometimes people get breaks as a result (other times, they get sc***ed as a result). It’s how it goes. That is why it is best to just cover your ears and say “nah, nah, nah” when people tell you they got great aid.</p>
<p>^^^^ a perfect example of those who read all the small print rules and then played the game to win…I would be that more families who are able to use the FAFSA flexibility with family business income will be doing so.</p>
You have just made me glad we don’t qualify for any need-based aid. Really glad. Because I’d hate to think the neighbors begrudged me the Highlander in my garage and the new patio on the north side of the house and those 2 expensive doggies.</p>
<p>I am very lucky because I have never expected life to be “fair”.
That is not part of how it works.
We never know the totality of anothers experience and college admission/aid packages certainly not an exception. ;)</p>
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<p>Most parents would be satisfied with the above situation and not look for ways to make themselves miserable.</p>