I have a problem...

Paying for College
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<p>Have you run the net price calculator on each UC, CSU, and private school that you applied to or are otherwise considering?</p>

<p>It does look like, from net price calculator test runs with your stated information, that UCs will expect a significant non-zero family contribution ($15,000 to $19,000, mainly because of the high assets), plus a student contribution ($8,500 to $10,000). The student contribution can be typically covered by federal direct loan (up to $5,500) plus work or work-study earnings. But if your parents are unable or unwilling to pay the family contribution, then you won’t find them affordable. Any loans beyond the federal direct loan amount will have to be either parent loans or parent cosigned loans.</p>

<p>What is interesting is that the CSU net price calculator does not ask about assets. If that is actually reflective of actual financial aid policies, then CSU net prices will probably be around $4,000 to $5,000 for those you commute to while living at your parents’ house, or $11,000 to $13,000 for those where you live at the school (in the dorm or in your own off-campus housing).</p>

<p>However, don’t get your hopes up too high on the latter, since there are some indications on various web pages relating to Cal Grants and other California or CSU financial aid that assets are relevant. Since FAFSA EFC is used as the basis for some of these calculation, and FAFSA EFC does take assets into account, the high assets your parents have will likely keep you from getting a lot of financial aid.</p>

<p>However, if the $500,000 is in actual retirement accounts (401k, Keogh, pension, etc.), then it is not included in assets for FAFSA purposes. This results in an EFC of $0 in the UC net price calculators, resulting in net prices of $8,500 to $10,000. Here is the FAFSA form: <a href=“https://fafsa.ed.gov/fotw1415/pdf/PdfFafsa14-15.pdf”>https://fafsa.ed.gov/fotw1415/pdf/PdfFafsa14-15.pdf&lt;/a&gt; (see the notes for questions 42, 43, 91, 92). Note: this is for reference; you may find it more convenient to do the actual FAFSA on-line.</p>

<p>Private schools usually use their own methodology to calculate financial aid rather than relying on FAFSA EFC. But they typically will take your parents’ high assets into account (and may choose not to exclude retirement accounts) and expect them to contribute a substantial non-zero amount. They are also more likely to add back business or self-employment deductions, resulting in the business’ gross revenue instead of your parents’ net income being used (run the net price calculators a second time with the gross revenue).</p>

<p>Run some net price calculators on the various schools you are applying to and show them to your parents. Tell them that you can only borrow $5,500 in your first year, then ask them how you can find the rest of the money.</p>

<p>If there is no way to afford any school on need-based financial aid, look into schools with large merit scholarships that will reduce the cost to below $10,000. See these lists:</p>

<p><a href=“http://automaticfulltuition.yolasite.com/”>http://automaticfulltuition.yolasite.com/&lt;/a&gt;
<a href=“Competitive Full Tuition / Full Ride Scholarships - #50 by BobWallace - Financial Aid and Scholarships - College Confidential Forums”>Competitive Full Tuition / Full Ride Scholarships - #50 by BobWallace - Financial Aid and Scholarships - College Confidential Forums;

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<p>@Madison85 I intend to major in Biochemistry. I want to go into the medical field, so yes my future income should be sufficient. </p>

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<p>thank you so much @ucbalumnus All of that information was very helpful. I’ll talk to my parents and college advisor about all of it. Again, thank you so much. </p>

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<p>My family’s income is pretty low. I have a family of six, my mom doesn’t work, and my dad’s gross income per year is 40,000$. Since he’s self employed, the net income is 31,000. I think that’s low.</p>

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<p>Your dad was able to save that much money with a very modest income? </p>

<p>I think you need to stay with FAFSA only schools. I think CSS schools will likely determine that the family business earns more than you think. </p>

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<p>The assets of the business can come into play, too, I think.</p>

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<p>My father used to be a manager at Abbott Vascular for 22 years. He used to make a lot of money. He was laid off two years ago, and then he started his own bookkeeping business. </p>

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<p>Who is this “college advisor”? Is this someone your family hired, or is,this your advisor at your high school.</p>

<p>Please clarify where that $500,000 is sitting. If it is in an authorized retirement account it is very different than if it is in a savings account that your father has earmarked for retirement. I will say, with your income at $40,000 a year, the school will likely want firm verification of your income…as most folks with income in that range can’t save that amount. And yes, I do understand about your dad’s previous job.</p>

<p>Did your parents save any money for college prior to your dad’s job loss? </p>

<p>Another question…does your family own a home, and if so, is it paid for? Some Profile schools do count primary home equity.</p>

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<p>If you are still uncertain about financial aid due to the asset question, add an application to a safety with an automatic full ride scholarship for your stats, if such exists (see the list of such linked a few posts ago).</p>

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<p>It’s a college advisor that was hired by my school to help the students. The 500,000 is my dad’s 401K retirement plan that he contribute to before 2012 when he got laid off. Yes, my family does own a home, but it has not been paid off in full. Does that answer your questions? @thumper1</p>

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<p>Lizsamir, the 401k funds will not likely be considered even by PROFILE schools. How PROFILE schools will view your father’s self employed income and assets is up in the air. PROFILE will ask for the net market value of your family home after you apply what is owed on the mortgage to what’s it’s worth. </p>

<p>The example with Dominican looks doable, IMO, with some money from you and family, if your EFC is indeed zero. You might do a bit better than that with some state schools. I have no idea how the California state grants work. You should find out and do ask your GC which ones are good fits for you. </p>

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<p>Good. The $500k is in a 401 K. Any home equity you do have will need to be reported on the Profile. It’s usually capped at a certain %age of income. </p>

<p>You really should try the net proce calculators. But do keep in mind that your parent owning a business affects the NPC accuracy. Often deductions allowed by the IRS are added back as income. When you say $40,000 income is that after taxes or before.</p>

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<p>@thumper1 ya the NPC for Dominican was off. I’m planning to live off campus so I don’t pay the 13,000 room and board fee, but it was added in there. The 40,000 is the gross income, before my dad had to pay the expenses for owning his business, and my father is exempt from federal taxes. </p>

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<p>Presumably, he had to file a tax return that resulted in $0 federal income tax liability (not surprising at that level of income with a family of 6)?</p>

<p>In any case, living off-campus is not free. Even if you live at your parents’ house and commute, you still consume food and utilities and have commuting costs.</p>

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<p>I have a friend that is also applying to Dominican, and will most likely get accepted. We were thinking of renting an apartment together, which will significantly lower the room and board costs each year. I live too far away from the university to commute (it’s about a 6-hour drive). I don’t want to put any burden on my family, so if everything works out with the other school funds and possibly federal aid, my parents shouldn’t have to pay much. </p>

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<p>Dominican should have a cost of attendance for students who live off campus. Hopefully, your aid will be sufficient to cover your living costs. Keep in mind, however,mthat you might not have the money up front. If you have excess aid, it will be a surplus in your bursar’s account. Schools give that surplus to students on varying schedules…but it’s not before school starts…and could be two months after each term begins.</p>

<p>You might need rent for a couple of months plus living expense money before your refund gets to you. Check with the school…and plan accordingly.</p>

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<p><a href=“Undergraduate Tuition and Aid | Dominican University of California”>http://www.dominican.edu/admissions/aid/costs2/undergrad&lt;/a&gt;&lt;/p&gt;

<p>The cost of attendance is lower than living on campus. I already found an apartment complex 10 minutes away from campus (I will be taking my car with me) where I’ll only pay $965 a month. This is about 4,000 dollars less than I would pay to live on campus per year. </p>

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<p>Looks like Dominican assumes that living with parents and living off campus cost the same for “room and board” at $4,518. This seems to be in the typical range for college estimates of commuter students living with parents, consuming food and utilities at the parents’ house. But living off campus not with parents typically has a higher “room and board” estimate that is closer to (but not necessarily identical to) the dorm “room and board” cost.</p>

<p>Since your $965 per month will cost $8,685 to $9,650 over 9 to 10 months, you still need to consider food costs in addition to that. And if you have to drive, you also need to consider car costs like fuel, maintenance, and car insurance. But the fact that the off campus cost estimate from the college is as low as the cost estimate for living with your parents means that financial aid may be affected adversely, possibly by more than you would save by living off campus (if you did save anything).</p>

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<p>I will be on my parent’s car insurance, and personal expenses such as phone bills would be paid by my parents. I will have a job so I will start paying off my student loan by contributing 2500 per year. And what do you mean by </p>

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<p>You likely will need a twelve month lease…so,consider that too.</p>

<p>Your financial aid will be reduced because your off campus cost of attendance is less than on campus. In other words…you won’t get the on campus amount.</p>

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<p>So even during the summer I would be paying for the apartment?</p>