<p>I really did think the schools would not want to lose a third of their bright, engaged students but I was wrong. My guess is in about 5 years, when they realize so many quality students have been forced to go elsewhere, someone might recognize the "penny saved" error of their ways. As for our house, our neighborhood is now 25-30% bought up by developers building megahouses. Everyone is getting taxed out of their homes and preditors are waiting.</p>
<p>Aroura, I do not think that anyone will wake up, b/c this is a product that is for sale. Those that can pay will buy, and those that cannot, or do not want to pay the "price of admission", will choose a less expensive product. This will only change when supply is greater than demand.</p>
<p>Yup, your are right....just a fantasy ; )</p>
<p>If you sell your house and set yourself back financially you may be limiting the support you can give your kids when they go to start their own homes or worse yet may even become a burden to them. Look at the Big picture and ask yourself very carefully if youre really helping them out by destroying your own financial security - In 20 years time are they really going to be so much farther ahead because they went to that Ivy instead of the quality In-State public. Because the chances are the decision you make now to sell your own home will probably have a major impact on you for the rest of your life. This is the time to take a look at the 50 year plan.</p>
<p>how about u take loans like everybody else.</p>
<p>"..middle income (say parents total income of $150K)"</p>
<p>Some need to get outside their bubble and take a look at how much most of the people in the country are getting by on.</p>
<p>Median US household income is about $44K. Families making $150K are making about 3.5 times the median-- which places them in about the top 10% of household incomes. Good for them.</p>
<p>Many will complain about debt, and how expensive it is to maintain the house, and the cars, and fund the retirement accounts (and perhaps to take the vacations) and to send the kids to private schools. But those are choices they've made about how to spend their money.</p>
<p>The GFG-
I'm right there with you!
Our high home equity makes it look like we could afford to fund a high ticket school. But it's equity inflated over 20+ years....our income can't cover a large equity loan so what's the point?
We aren't selling our house to send one child to school.<br>
And where do we go......somewhere outside NJ obviously.
Oh and then we'd pay OOS tuition for our son at TCNJ. Go figure.</p>
<p>timcob, excellent post!</p>
<p>Wow, I never thought 150k as middle class, but I guess it is in more expensive places to live. I got "lucky" this year because my father's company failed last year and made negative 20000 dollars (and my mother is only a teacher). However, I am screwed for next year though because my parents will be making around 100k with my dad's new job and I do not think I will be able to pay for my sophommore year. We have no savings because that all went into the business that is now gone.</p>
<p>State universities are filled with middle-class kids whose families are too "rich" for aid and too poor to shell out $45,000 a year. That's why the advice is to have a financial safety on your college list as well as an academic safety. And I don't mean OOS, because those are way expensive in many cases and the aid ain't there. I'm talking UMich, UVA, etc.</p>
<p>"Median US household income is about $44K"</p>
<p>Being a student from a median income household, I understand all of this. But with my family making approx. 46K a year, how are they supposed to give me the $6300 dollars that the ever powerful fafsa says is possible? I didn't apply to the schools I actually wanted to attend because I knew that either I wouldn't get in (I go to a school that offers no AP or IB courses. I'm the Val, but in the grand scheme of things I'm not academically competitive on my application) or I wouldn't be able to pay. When are these schools going to realize that a stressful financial enviornment is not going to help their students, or encourage them to attend? I am truly frustrated. My family cant help me, so I'm going into about $30,000 in debt at a state school in the next 4 years. this just is not fair.</p>
<p>redsilverclouds-</p>
<p>$6300 is a pretty high EFC for a family with income around 46K. Assets (parent's or yours) are probably contributing much of that $6300. Try to avoid putting liquid assets in your (the student's) name.</p>
<p>Also look into the Simplified Needs Test.</p>
<p>sblake7-</p>
<p>one of the reasons for my high EFC is my savings. I didn't realize that putting money into my savings account over the past year from my part time job would hurt me this much. </p>
<p>and what is the simplified needs test?</p>
<p>redsilverclouds, when you said your family's income was 46k, is that before taxes, after, or Adjusted Gross Income? I have a simliar situation as yours where my family's income (after medicare tax, federal, and social security) is 46k. </p>
<p>However my efc is ~6700 because I worked a lot during the school year to help pay for household bills. Did you happen to recieve a breakdown of your efc from your school, such as how much you are contributing and how much your parents are?</p>
<p>u poeple are spoiled. The downfall of america.if ur family makes 150k a year, you family can give probrolly 80K of it, just stop living in your bubble. Its kind of pathetic. You say your family cant afford the school. My family goes 4 years on what yours goes on for 1.</p>
<p>Think about it,</p>
<p>UB-Vinny77 "if ur family makes 150k a year, you family can give probrolly 80K of it"</p>
<p>UB-Vinny77 how about some facts. If you make 150K your taxes between Fed, State, Soc Sec, Medicare alone will be about 55-60K. That leaves 90K. </p>
<p>Now if 2 parents are making that money they proabably live in a high cost area like MA, NY, NJ, CA and not mississsippi. Thus housing, utilities, insurance (auto, life, health, disability), etc will probably be at least 40K. </p>
<p>Now you've still got to eat, pay for gas for 2 cars (2 parents working), clothes, etc. </p>
<p>You really clueless to think there's 80K left.</p>
<p>FoonMOnChew is right. Some people also have to pay high property taxes or high rent in high cost of living areas. I understand that there may be some people fortunate to be living in a rent control building for 30+ years, and paying nothing. This is not the norm.</p>
<p>redsilverclouds:</p>
<p>Use the EFC calculator at FinAid, and it will tell you exactly what is contributing to your EFC. Basically, if you (the student) make over 2,600, a portion of the amount over $2,600 will be used to increase the EFC.</p>
<p>And ANY amount you have in your name gets assessed at 35% each year. So if you've dutifully saved 10K in your name toward college, it increases your EFC by $3,500 in the first year, and decreases your aid package by that amount.</p>
<p>On the other hand, if the money had been saved in your parent's name, it would probably be below their asset protection allowance (probably around 50K), and therefor not hurt you at all.</p>
<p>You can Google for Simplified Needs Test. Parents with income under 50K who can file short form might be eligible, and it might reduce the EFC.</p>
<p>But check out FinAid and report back on what's contributing most to your EFC. I'm guessing that at least half is due to savings in your name. If you've saved 18K, then ALL of your EFC is due to your savings. Tactical error.</p>
<p>aMeng-
The 46K is our adjusted gross income...I think. My expected contribution is somewhere around 1300-1500 (cant remember the exact amount). </p>
<p>I think one thing that the FAFSA needs that it doesn't have is a section on family debt (medical, etc.). Because of an insurance error this year, my family has almost 20,000 in medical debt. They should take that into consideration.</p>
<p>And yea I made a mistake saving ANY money, but I don't have that much stashed away. I have like $1000. I figured if i saved too much it would hurt me, but I didn't think such a small amount could have that kind of effect. </p>
<p>I really wish i had known this site was here before I started this whole college mess....Things would be different right now. </p>
<p>And one random question for everyone: my step-dad is going back to school next year to pick up some classes to qualify him for a new job. When we fill out next years FAFSA, will that help anything?</p>
<p>Vinny you're obviously just looking at numbers. Why don't you take into account FooMonChew's post?</p>
<p>My family brings in a bit more than 110k, and my EFC is ~55.5k :-\ Our house is worth quite a lot though because of the neighborhood, though it was way cheaper when we bought it 8 years ago... I have around 30k in bonds under my name for college that my parents have been saving up since I was born...My parents also financially support many of our relatives including several relatives in Vietnam. Thankfully the CSS Profile had that section at the end to put additional comments...but the FAFSA unfortunately did not have that and placed my EFC really high :-. My parents have simply told me they cannot pay 45k a year, and honestly I do wonder why the amount my parents say they can afford seems so little compared to our gross income. But hey, I'm just a 17 year old kid who doesn't handle the bills, what do I know right?</p>
<p>To add salt to the wound Brown has given my ZERO aid...except for saying that I'm eligible for an unsubsidized Stafford loan. As Brown has been my dream school for years, I wouldn't mine taking out 45k a year in loans...haha...but obviously my parents are adamantly opposed to that. I'm gonna try to appeal to Brown, but I'm not keeping my hopes up very high. Brown's endowment is relatively small - ~2bil, which is the smallest of the Ivies. That hurts a lot cause they seem to only match awards from the other Ivies+Stanford+MIT.</p>
<p>I was thinking if I spent ALL my savings on tuition freshman year, that'll put me at nearly no savings next year. That should significantly lower my EFC next year shouldn't it?</p>