<p>Hi, I was accepted to MIT Ea, and I just have a question regarding financial aid, my efc is $38,000, but my parents both lost their jobs last year and are currently out of work. We are living off unemployment right now, and there is no way that they can afford that. Our mortgage is around $4,000, anId that is basically all the unemployment. What should I do? I really want to go to MIT, but is their anyway that I can afford it. Will MIT do anything to help?</p>
<p>From a relative newbie on this site—</p>
<p>First you have to apply for financial aid (if you haven’t already) to find out if MIT will give you enough aid to attend. Check their website to see what is required–FAFSA and maybe the PROFILE. Do it now as most deadlines for aid are coming up (Feb.1 in some cases). On the PROFILE form, you can list your parents as dislocated workers, meaning they are unemployed and are receiving benefits. There is no place on the FAFSA for this. In addition I would suggest that you write them a letter or have your parents write and explain your situation.</p>
<p>I’m sure that the other very experienced posters on this site will have more advice.</p>
<p>How long have your parents been out of work?</p>
<p>Since your EFC is high, that suggests that they recently lost their jobs. Is that true?</p>
<p>At some point, if your parents are still unemployed, MIT will likely adjust your aid. You’ll have to contact them about the employment issue.</p>
<p>If your parents have only been laid off for a short time, MIT probably won’t do anything until after a period of time. MIT is going to want to see if your parents can get re-employed in the near future.</p>
<p>If your parents find new jobs rather soon, MIT may not feel the need to adjust your aid much at all.</p>
<p>With a $4k per month mortgage, that suggests a very high income at one point.</p>
<p>Oops sorry, I didn’t read the op thoroughly as you’ve already got your EFC. I would definitely contact MIT asap.</p>
<p>Why would a $4K/ mo mortgage suggest a very high income?</p>
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<p>Because that’s a pretty steep mortgage payment for someone with a low income to cover. If only your mortgage costs are close to $50,000 per year, one would need a pretty large income to be able to afford all the costs that go along with home ownership plus food/clothes and other expenses.</p>
<p>Are you being sarcastic 2college2college? To get a mortgage that size the income is high. My H and I when we were younger and both working could not have afforded a $4,000 mortgage on over $100,000 of income even back in the day and when interest rates were around 6-7%? That’s $50,000 a year in mortgage payments.</p>
<p>OP all that you and your parents can do is talk to the financial aid office. Every college handles unemployment differently and it won’t be something they haven’t heard in the past couple years. Best in this case to have at least one of your parents in on the conversation with you.</p>
<p>Clearly the have a good upper middle class income with a near $40K EFC, but nothing I would term very high, I.e. They have no chance at aid.</p>
<p>Top colleges are giving families that make $180k aid these days. A good income, but again, nothing too high to cancel chance of aid.</p>
<p>A $50k mortgage payment after tax is $30k/yr or less for many. About what you can afford on a $120K salary. A good, but not very high income.</p>
<p>Wow. We have near what 2college2college describes as that good but not very high income and are quite happy that our mortgage is NO where near $4000/month!</p>
<p>2college- Are you by any chance a realtor or mortgage originator?
DH and I must live waaaay below our income for housing…and are happy that we have some $$$ left to pay for insurance, college for kids and retirement.
(and not much else!)</p>
<p>“A $50k mortgage payment after tax is $30k/yr or less for many”</p>
<p>Say WHAT? That’s a 40% reduction! The tax deduction is on the INTEREST only, not on the entire mortgage payment. Plus, very few people even have a marginal tax rate of 40% for combined federal and state income tax (even though they should).</p>
<p>To take on a monthly mortgage payment (PITI) of $4K would make you pretty “house poor” even at a gross income of $180-200K.</p>
<p>Wow, not sure what folks do in other areas of the Country, but a $4K mortage on a $150K salary is run of the mill in my neck of the woods. Most are paying just interest as they constantly refinance. A 40% tax rate is also pretty common here. And yes, everyone’s house poor.</p>
<p>Don’t mean to be contentious, I guess I’ve lived in outrageous real estate markets too long.</p>
<p>And no, not in the business.</p>
<p>Again, only the INTEREST part of your mortgage payment is tax deductible.</p>
<p>Here are the 2010 Fed income tax rates: <a href=“http://www.taxpolicycenter.org/taxfacts/content/pdf/individual_rates.pdf[/url]”>http://www.taxpolicycenter.org/taxfacts/content/pdf/individual_rates.pdf</a>
Note that for married filing jointly, the 33% marginal rate doesn’t kick in until you get to a TAXABLE income (not gross) of $212,300 (that’s <em>after</em> you subtract out the personal exemption, itemized (or standard) deductions, and various other adjustments and deductions. Here you’d have to have a marginal state tax rate of 7% to get the 40% savings that 2college proposes. </p>
<p>You have to have a <em>taxable</em> income of $379,150 (for married filing jointly or single or head of household) before the 35% marginal fed tax bracket kicks in. </p>
<p>“Most are paying just interest as they constantly refinance.” - dumb. AKA “living beyond your means”</p>
<p>In places where a dilapadated 1500 sq. Ft. House averages above a half million, that’s unfortunately how people live to get a family neighborhood and decent school district.</p>
<p>35% kicks in higher than I thought, but there’s still a very substantial tax break and I think many paying that much do get aid.</p>
<p>I appreciate all the advice, and to answer the questions, one parent (the parent that makes less) has been out of work for 10 months, and my other parent has been out of work for 2.5 months. I also just recieved a 10,000 per year scholarship at the University of Chicago, so could I use that to help my MIT status? Should I write a letter to admissions?</p>
<p>bump please!</p>