<p>I assume that we make too much money to qualify for any need-based aid. We have little debt and some savings. Of course, there are two other kids to put through school, but they are younger.</p>
<p>What is the income level where they laugh at your application for need-based aid?</p>
<p>Every thing is based on these all added up:</p>
<p>Current income student
Savings/Investment student
Current income both parents
Savings/Investments both parents</p>
<p>What are considered savings and investments? Retirement, house, 2nd house, regular savings, IRA, 401.....just about everything.</p>
<p>Essentially, there is no "free ride".</p>
<p>So, if you as a student have a chunk of money saved, then colleges are going to count that money you have for college. Same with your parents investments.</p>
<p>The "limit" is based on number of children to some degree.</p>
<p>This is exactly what the FAFSA and the Profile do...is calculate your expected responsibility. There's no magic number.</p>
<p>There are hundreds of calculators on the net that will give you idea of your "expected" amount to pay and what you might get. Try this one:
<a href="http://www.finaid.org/calculators/finaidestimate.phtml%5B/url%5D">http://www.finaid.org/calculators/finaidestimate.phtml</a></p>
<p>Why would they count your 401K, IRAs, etc.? Because you could borrow against it?</p>
<p>Mixer is all mixed up. Retirement acct's DON'T COUNT! Contributions to them are added back to your AGI and then you're assessed on it. FAFSA only schools - no more than 20% of your AGI. At a private school you'll still get need-based aid with an AGI of $200,000. State schools vary. CSS schools could actually cost you less, but there are many factors to consider.</p>
<p>Reecy is correct, only your current contributions to retirement accounts are assessed. The best advice mixer gave you is to run calculators as no one can answer your question without detailed financial information. The finaid one is good, as is the one on the College Board site.</p>
<p>"At a private school you'll still get need-based aid with an AGI of $200,000."</p>
<p>I don't think so. Even with 0 assets, that would give you an EFC of about 50,000.</p>
<p>Yep, EMM1 is correct. AGI of 200K is unlikely to get you any need-based aid unless you have a slew of children and half of them are in college. (Or some other very unusual circumstance, I suppose.)</p>
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<blockquote> <p>"At a private school you'll still get need-based aid with an AGI of $200,000.">></p> </blockquote>
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<p>Really?? Well we didn't and we had two kids in college at the same time.</p>
<p>Re: home equity...the FAFSA does NOT consider home equity. The Profile does. SO schools that use the FAFSA only will not consider your home equity.</p>
<p>Re: retirement...the amount IN the accounts is NOT considered an asset. The amount you contribute IN the tax year you are using for filing your finaid IS considered as income (e.g. for this coming year, any contributions you MAKE to your retirement accounts in 2007 count as income). Remember also, these MUST be retirement accounts. They cannot be regular savings accounts or CDs that YOU plan to use for retirement. Regular savings, CD's and checking accounts are considered as assets.</p>
<p>I believe some colleges protect up to a particular $ figure of retirement contributions, yes, to a retirement account - and this amount varies by age.</p>
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<blockquote> <p>I believe some colleges protect up to a particular $ figure of retirement contributions, yes, to a retirement account - and this amount varies by age.>></p> </blockquote>
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<p>I have never heard of a protection for contributions to a retirement account. But I suppose anything is possible. This is not done on either the FAFSA or the PROFILE.</p>
<p>Hmmm...I could be wrong. Perhaps what I was thinking of was the amount of assets protected, which does vary by age. <a href="http://www.fafsa.com/fmtables.htm#ESAPA%5B/url%5D">http://www.fafsa.com/fmtables.htm#ESAPA</a></p>
<p>If the EFC states you do not qualify for a pell grant, does that mean my S will not be eligible for any type of grants?</p>
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<blockquote> <p>If the EFC states you do not qualify for a pell grant, does that mean my S will not be eligible for any type of grants?>></p> </blockquote>
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<p>It means that your S will not be eligible for a Pell Grant. Schools granting institutional grants use their own criteria for awarding such grants (some are actually not need based). Pell grants are federally funded, not institutionally funded.</p>
<p>Thanx, thumper.</p>
<p>Private colleges may still give you institutional grants. Pell Grants are reserved for very needy and low-income students.</p>
<p>Try out some estimators. </p>
<p><a href="http://www.princeton.edu/admission/financialaid/early_estimator/%5B/url%5D">http://www.princeton.edu/admission/financialaid/early_estimator/</a> </p>
<p><a href="http://www.dartmouth.edu/apply/financialaid/calculator/index.html%5B/url%5D">http://www.dartmouth.edu/apply/financialaid/calculator/index.html</a> </p>
<p>Each college does things a little differently, so it doesn't hurt to apply to all colleges of interest and then see what the colleges that admit your child offer by way of financial aid.</p>