<p>I'm talking $100-120k income, and around $600k in stocks. With two kids in college for the majority of my time there (my first year will be more expensive until my sister graduates and goes to college one year after me), I know that our income alone would qualify us for good aid at top-tier schools (big-name LACs and private colleges, some Ivies), but how much would the assets hurt my financial aid package? </p>
<p>Try their NPC and you will find out.</p>
<p>Is the $600k in stocks in qualified retirement accounts, or straight investment accounts?</p>
<p>And if some of those assets are protected retirement accounts they are excluded.</p>
<p>Could you explain where these stocks are?</p>
<p>The stocks are just straight up invested. My father is already retired.</p>
<p>Some of those generous colleges that might award you need based aid have the caveat “with TYPICAL assets”.</p>
<p>I’m going to guess that $600,000 exceeds typical assets.</p>
<p>You can be retired and still have money in retirement accounts.</p>
<p>In any case, as suggested, try the Net Price Calculators at each school’s finaid website with and without the $600k and see what difference it makes. Do them for 1 and 2 students in college also.</p>
<p>For fafsa it will increase your efc by about $31k after the asset allowance. Once both of you are in college the parent component of efc will be cut in half.</p>
<p>But for institutional aid the best way to get an estimate is to use the NPCs.</p>
<p>And just for safety sake…please add an affordable safety school to your list. Those Ivies, and tippy top LACs that meet full need are mighty competitive. There really isn’t any guarantee you will be accepted at them…so make sure other options are on your list.</p>
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<p>Is your dad married? If not, he has little asset protection. If he’s married, then the first $45k or so is protected.</p>
<p>The remaining $550k adds about $33k to your family contribution based on income (which would be about $25k). So your family contribution would be about $58k per year when one is in school. </p>
<p>When there are two in school, then your full-need school would expect your family to pay 60% of that (about $35k) for YOU. If your sister gets into a similar aid school, then that school would also expect your family to pay about $35k for HER.</p>
<p>Have your parents said that they will pay:</p>
<p>Year 1: $58k
Year 2: $70k
Year 3: $70k
Year 4: $70k
Year 5: $58k</p>
<p>What are your parents saying??? How much will they pay each year? </p>
<p>thumper is right…you need to add some financial safeties to your list. You need some schools that will give you merit for your stats in case your parents can’t/won’t pay this much over 5 years.</p>
<p>I’ll have to ask my dad about the retirement accounts, then. Yes, he is married. And as for “typical assets” I know that Columbia considers 250k “typical” for a family making $100k, but that includes home equity and we own our house so we definitely have more than typical.</p>
<p>35k might be a little much. Maybe 30k max is what my parents can afford just for me, but I am more than willing to make up the difference with loans if need be.</p>
<p>I’ll try the NPCs, too. And no worries. I have more than few safeties. I live in CA so the UC system is a good bet for me and my school makes us apply to at least 5 UCs/CSUs anyways. </p>
<p>Thanks to all.</p>
<p>Um…loans? You, the student, can take a $5500 loan in your name only. Any loans above that amount would require either a cosigner…or that your parents take the loans. Will they do that for $30,000 a year?</p>
<p>If your assets generate a family contribution of $30,000 or so…your family will be exoected to pay that amount…at least.</p>
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<p>You need to ask your parents how much they can pay - in total - each year…when it’s just one in college and when there is two in college.</p>
<p>. It would be about $58k for YOU the first year. </p>
<p>NO…YOU cannot make up the difference with loans. YOU can only borrow $5,500 for frosh year. That is the federal student loan amount. Private banks aren’t going to lend to a college kid…you don’t have the income to back up the loan. </p>
<p>hmmm…so your family has home equity in addition to the $600k?<br>
Does Columbia count home equity in its formula?</p>
<p>You really need to talk to your parents. They may not even be able to afford $60k per year for two in a UC at one time. And that’s what they’d have to pay when there are TWO of you at a UC.</p>
<p>You’d get no aid from a UC…even with two in college.</p>
<p>I meant if they’re expected to pay 35k for me (when my sister is in college), according to mom2collegekids’ response, they’d probably be willing to pay 30k and I could take out the other 5k in loans. I know I can only take out 5.5k so it works out fine. Definitely NOT going to take out $30k a year, haha.</p>
<p>For the first year… maybe I could convince my parents for more, since they wouldn’t have to be paying for my sister too.</p>
<p>My family owns a home, and yes Columbia includes it but they cap it somewhere.</p>
<p>I have talked to them and they are constantly telling me to go to a UC instead of a private college, so I just assumed they could afford it, haha.</p>
<p>Your parents may not know how expensive UCs are these days…the prices have jumped a LOT in the last few years. </p>
<p>You need to tell them that for each child, it will be about $32k per year ($64k per year when two of you are in school).</p>
<p>Again, they may not have ANY idea that tuition AND room and board cost so MUCH at a UC these days. </p>
<p>You won’t qualify for any aid with those assets.</p>
<p>Did you run the NPC for Columbia? Do so with one in college and then with two in college. That’s about as close as you are going to get in terms of estimate. Run the for other colleges you are considering as well.</p>
<p>As others have said, you need to run the NPC for all of the schools you are interested in, as the criteria varies from school to school.</p>
<p>In general, in calculating the EFC most schools consider that 20%percent of income can be used to pay for college, while only 5.64% of non-retirement assets (i.e., money that is not in IRAs, 401Ks) – minus the exemption, which, as others have said, is greater for married than single people – can be used for that purpose. Non-retirement assets include investments, savings, home equity (i.e., value of the home minus what is owed on it), 529 savings plans, etc.</p>
<p>As for home equity, some schools don’t include it at all in their calculations, other schools cap it as a percentage of the income. Again, this varies from school to school. </p>
<p>S.</p>
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<p>Um…no. Where did you get your information?</p>
<p>5.6% is the amount of parent assets (after the asset protection allowance) that is added to your family contribution. 20% is the amount of the student assets added to your family contribution…no protection. Parent INCOME is typical between 25% and 33% of your gross income depending on your parent income for those with incomes above about $70,000 a year. For lower income, the %age from income can actually be very low…in some cases below 15%. As income increases, the %age sometimes increases as well.</p>
<p>529s held in the parent or student name are counted as parent assets at the 5.6% rate. </p>
<p>Any student can print out the FAFSA forumula and plug in the numbers.</p>
<p>For Profile schools, the formulas vary wildly. </p>
<p>If family income is regular earned salary, the parents are not self employed or divorced, and the family doesn’t own real estate other than their primary residence,they should run the net price calculator on each college website for a decent estimate of their ney costs at any particular college.</p>