You have less than 5,000to pay as a student contribution and that is before all federal loans are used, so in reality they want you to come up with $3,000.you said in an earlier post that you worked so I assume you have a job. Add more hours now if you can, move to full time in the summer= done.
Then work study will help pay for your personal expenses.
If Holy Cross gave you a scholarship. Does it have the same $40k amount every year or does it adjust for increases? What is the GPA requirement?
The advantage of a merit scholarship would be that it should not change (be reduced) if your family income increases, as long as gpa requirement is met. At BC or other school that gives need based institutional grants the amount of grant can go down if income increases.
Yes, I agree. Make a spreadsheet and put side by side the tuition, fees, room board costs of all colleges. Then subtract the merit or institutional grant. The look at remaining net price you have to pay for each and figure out what’s the best offer. How much in loans does each require? Can your family afford it?
Need-based aid is often referred to as a scholarship, and I’m betting that’s what the $40,100 from Holy Cross is.
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The next year’s aid (2017-2018) will be based on 2015 income figures, so mom working this year will only make a difference to the extent that mom’s saved income will be a reportable asset.
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Is CSS Profile following that rule?
Yes. (If by “olowing” you meant following.)
Yes. First Fafsa announced it. Then CSS followed with the same announcement.
Ok…so if mom works minimally this year, and spends earnings up to filing next time, then she can earn more and save more the following year…correct?
Whatever mom earns in calendar year 2016 will be used to determine aid in school year 18-19, his junior year.
Whatever mom earns in calendar year 2017 will be used to determine aid in school year 19-20, his senior year.
ok…is last years info being used twice?
Last year’s (2015) income information will be used for OP’s freshman and sophomore years.
ok…so mom can start earning and saving and it won’t hurt the frosh or soph years?
Yes.
Income for calendar year 2015 will be used to determine aid in school year 16-17 AND school year 17-18. That is because of the change from prior-year income as the basis to prior-prior-year (PPY) income.
However, applicants will be asked to update their assets.
Correct mom2. Tax year 2015 tax info will be used on the 2017-2018 FAFSA as well as this year…2016-2017. Ditto th the Profile.
And it’s almost the start of May. Any income for 2016 will be 3/4 of the year at most. That 2016 income will be used for the 2018-2019 FAFSA.
2016 earnings won’t factor into freshman or sophomore aid, but any earnings in the bank will be reported when FA forms are completed for sophomore year on.
If mom can start working a LOT now…and it only hurts junior and senior years, then certainly the family will come out ahead if only the last two years’ aid is reduced because of her income. She could put max into a retirement acct rather than savings…or prepay whatever they can. Don’t know if BC will allow a prepay of tuition? or maybe if student is living off campus by then, prepay rent?
No. This would not work. You cannot shelter your earnings in a retirement account. FA office still counts it as income because you have a choice to pay for college or save for retirement. Clearly, they want you to pay for college.
That said, anything that is already in your retirement account that was not earned that year is protected.
What is wrong with working and using that money to help pay the college costs? Sorry…the aid won’t decrease dollar for dollar. The parent can contribute to costs…and that’s not a bad thing…is it?
I think the point was that she could earn it this year, put it in a qualified retirement account as it is earned (up to statutory limits, of course), and anything in the account would not be a reportable asset and the income that was put in the qualified account would not impact aid until OP’s junior year.
^Ah! OK.
And
The fact that your dad earns $72k per year means your financial situation is not nearly as crappy as you first made it out to be.