How will this affect his financial aid for some private colleges? Would it help his FP if I returned the Florida Fund?
What? Are you asking if you should return his fund? what do you mean? Give it up? Give it away? Cash it out?
Why isn’t he applying to colleges this prepaid plan will cover?
You can use the prepaid at any school, public or private, but you only get the amount the fund would pay to a Florida public school. For example, if you bought a plan that just covered one year of tuition, you’d get about $6000 toward the private school, NOT the private school’s tuition, even if that private school is in Florida.
I think most privates using CSS treat this like a 529 plan in figuring what your need is. I don’t know this for sure, so you should check. At my daughter’s private school in Florida, there is one person in the finance office that deals with Florida prepaid since many students have it, there are a few different plans so she’s good at working out what will be available in a given year. Will it change your son’s ‘need’? Of course, it is a fund that available for his tuition.
Return the fund to who? It’s an account you funded with your money. Just like with a 529 account, you don’t have to use it (and I know people who save it for grad school) but if you cash it in you’ll lose money and pay a penalty. You can call them and they’ll tell you what your options are.
@mom2collegekids Sorry, yes cash it out.
@thumper1 He may but likely is looking at private/ivy
From what I understand the FPP will count against his financial aid package of what he would receive. So for example if he qualifies academically for a full tuition at some colleges the FPP would’nt be needed and if he qualifies academically for say a private college then the financial aid would cover all or most based on family income so the FPP isn’t needed also.
@moscott unless I reading something wrong…your son is a HS freeman this year (who might decide to graduate after 3 years).
Re: college options…you don’t have any info to know whether he is a competitive applicant for the Ivies.
But I digress. Your Florida prepaid plan will reduce your financial need…because it’s money you HAVE for college. If your need is reduced, your need based aid from the college will also be reduced.
Re: those schools that meet full need…even within those schools, need based wards vary and sometimes by tens of thousands of dollars. The schools have varying formulas for determining how they award their institutional need based aid.
The current net price calculators are set up for,students who will,be freshmen in fall 2016. But you could try them to get an estimate…just an estimate…as its two or three years prior to when your kid will actually enroll.also, you don’t really know your income figures for,the future…so keep that in mind too.
If you are divorced, own a business, are self employed, own real estate other than your primary residence, or are an international student, the net price calculator will not likely be accurate.
@thumper1 Thank you for the insightful post. I’m not looking to do anything right this second…just looking ahead. Just to be clear though…IF he qualifies for a private college that is need blind, having the FPP wouldn’t help in the least? I would be better off cashing it in before hand and using the money. IF he qualifies academically for 1 of the privates than most likely he would gain full tuition to say University of Alabama, correct? Again the FPP wouldn’t be needed then either. Since I am divorced and self employed and own real estate the net price calculator won’t be accurate.
As for him being competitive for Ivies etc…true but I can only go on past performance. Currently 4.0 gpa, 33 ACT in 8th grade, currently ranked #2 of 590, STEM alliance scholar, received over $5,000 in scholarships for 1st team all american, medalling in State Science Olympiad and is a recruited athlete in football. Will he stay that way? I don’t know but I’m trying to prepare the best path for the future. Thanks again.
I’m sure this was a typo…but university of Alabama is a public university.
@thumper1 Not a typo…what I’m saying is IF he qualifies academically for a private top tier college(need blind) then gaining a full tuition to a school such as UA is viable. In either case what would be the benefit of having a FPP vs not?
Those who have get the full tuition award at Bama use their Pre-Paids to pay for Room, Board and Books.
since your son has an ACT 33 as an 8th grader (that’s almost unheard of), not only is he likely going to be a NMF, but have perfect/near perfect stats when it comes time to apply.
I don’t see how cashing out the FPP in the near future is a good idea. What penalty would there be? What would you do with the money?
@mom2collegekids No penalty. You simply get back what you paid in from what I understand. Seems like if I didn’t have a FPP he would get more in FA or full tuition than by having one. Same if he gets a full ride through football…the money could be better used for bills, taxes etc…then giving it to the colleges and basically helping them.
He would get the full tuition merit scholarship from merit schools regardless. I think you think that if he has a prepaid then schools like Alabama wouldn’t give him a full tuition scholarship (or more).
He would STILL get the full tuition scholarship, and then you could use the prepaid to pay for room board and books.
And if he got a free ride from football, he’s STILL get that, regardless of the FPP. You wouldn’t use the FPP if he got a free ride from football.
As for “giving it to colleges” …I guess you mean at “full need” schools. But, it sounds like you won’t qualify for need based aid (self employed, NCP income, etc), so you’d still have to pay.
@twoinanddone can comment on penalties for cashing in.
A lot to consider…thank you. So if I understand what you are saying. IF he had no FPP he would get full tuition in the amount of X…but since he has a FPP he would get full tuition amount of X MINUS the amount paid by FPP?
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o if I understand what you are saying. IF he had no FPP he would get full tuition in the amount of X…but since he has a FPP he would get full tuition amount of X MINUS the amount paid by FPP?
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What?
It doesn’t matter if he has the FPP or not.
If he gets a free tuition merit scholarship, then he gets the free tuition merit scholarship.
There is NO minus. NO MINUS
You need to read what we’re writing. Is English your second language? If he has the FPP and gets the full tuition merit, then he can use his FPP to pay for his room, board, books, etc.
The scholarship at Alabama is guaranteed…and has nothing to do,with your finances…at all…nothing.
Are you anticipating that this student will be a recruited athlete?
@thumper1 that is also a possibility yes.
@moscott be sure to understand how scholarships and financial aid work. Some scholarships can be ‘stacked’.
If student has a pre-paid plan, it can be used regardless of in-state or out of state - under the terms of the contract. If there is a state use only situation, then that needs to be evaluated if student wants to attend out of state. For example in TN, their state program (funded from the lottery for students that meet a certain academic criteria), from my understanding applies, to in-state public or private schools.
Well…just so you know…there are no scholarships for athletes at the Ivy League or any Division 3 schools. Just FYI.
@thumper1 Yes…I realize that…it would be a hook to go with academics. Earlier you questioned as to whether he would even be a candidate for the Ivies…I was just listing that as a recruited football athlete it might help him with admittance to go with academics.
Not sure being a football player would be classified as a “hook”.
Regardless. My opinion, keep the Florida prepaid plan. If your kid gets accepted with a full tuition scholarship, you can use it for room and board.
Are you anticipating being eligible for need based aid?
[quite]I am divorced and self employed and own real estate the net price calculator won’t
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At the Ivies, and many of the other elite private schools, your former spouse (and spouse if there is one) will,also need to provide their financials.
As a set employed person, for those Profile schools, the value of your business will be a factor. Your equity in your additional real estate will be counted as an asset. If these are rental incomes, the rents will be income.
If you receive child or spousal support, that will,also need to be included on the financial,aid application forms.
Your FPP is worth something at almost any college in an think of…unless your kiddo gets a full freight free ride (Ivies only offer need based, and it sounds like you wouldn’t qualify for full need based aid). So your FPP would be able to be used for other college costs.