<p>I just got back my financial aid estimation. My parents are divorced, and together, they should make around $50,000. I got into Brown, and my current EFC is $14,000. My mother, who is my provider, only makes around $20,000 per year. </p>
<p>They said in the messages that my EFC is based solely on my parents' assets, not on my parents' income. I live in an apartment with my mother, and my dad takes care of his home and another house--one that results in a $25,000 loss in income on his tax forms. </p>
<p>Why is my EFC so high--how can they expect me to pay that? Why are they only using my parents' assets? Is this estimation accurate--can it decrease when the real financial aid comes out? What can I do to get more money?</p>
<p>I’m going to take a guess. Your dad 's second piece of real estate sounds like a rental property. Is that correct? Does your dad have a mortgage on that property? Its value would be considered an asset by Brown. If
The property is worth $400,000 and the outstanding mortgage is $100,000 then the equity of $300,000 would generate a goodly portion of your family contribution for Brown.</p>
<p>I do want to add…this would NOT likely be your EFC per FAFSA which would be based solely on your custodial parent income…is that your mom? Her low income should generate a $0 EFC per FAFSA, I believe.</p>
<p>But Brown expects both of your parents to contribute. It sounds like your dad’s real estate asset is what is driving this. Call Brown and ask them.</p>
<p>Are you saying that your dad earns about $25k-30k per year and he’s claiming a $25k loss (deductions) each year because of his rental property? </p>
<p>It’s likely that Brown isn’t allowing some of those deductions. Does your dad rent out that extra property? if so, what about THAT income? If there is income, then that counts too. </p>
<p>If Brown determined a $14k contribution based soley on your dad’s assets, then that 2nd home must have a LOT of equity. $300k in equity would be about an $18k contribution. So how much is that property worth minus any mortgage on it? If there is a mortgage did your dad remember to include that when figuring equity?</p>
<p>Either way, you need to talk to Brown and find out if they’ll reconsider your aid…and provide good INFORMED reasons. You need to have all hard facts when you’re talking to them…incomes from jobs, rentals, equity of the second home, etc. </p>
<p>How much can each parent contribute? You can borrow up to $5500 to put towards the “family contribution”. You might be able to earn another $4k over the summer.</p>
<p>How much did you get in grants. Keep in mind that some of the “family contribution” is for “personal expenses, books, and travel costs” …those are costs that YOU can reduce by being economical. You might also have some leeway in room and board costs if there are some choices there.</p>
<p>How much were you awarded in GRANTS??? Sounds like you were awarded about $45k in grants…were you? If so, then with some careful budgeting, working during the summer and working part time during the school year, you might be able to make ends meet.</p>
<p>^m2ck - it’s not clear if the loss is the deductions or if that is the net tax loss. Typically the gain/loss value is not the same every year, so that’s not clear either. If Brown has already looked at op’s tax returns and given an estimate, wouldn’t that mean they already filed the CSS profile?</p>
<p>Thanks everyone. You’ve been all really helpful. I’ve decided to save up, work more, and try to make ends meet.</p>
<p>Well, snickers, it doesn’t hurt to ask for more money once you are accepted. I know it sounds complicated from all of these posts, but you can at least ask how they reached the number. And… if that doesn’t work, ask your dad for some contribution, since it is his asset that is causing them to think there is something there. I think it would be VERY difficult for a college student to come up with $14,000 a year on your own.</p>
<p>Snickers…have your dad call the FA office to determine why his assets are causing such a “family contribution”. Obviously, it’s HIS assets that are causing this. See if he can get them to adjust your aid. </p>
<p>Int…the student probably won’t have to come up with $14k. That’s just the balance after aid is subtracted from a likely padded COA. Unless Brown puts loans in their FA pkgs, the student can borrow $5500, work in the summer and during the school year, buy books online/used, and cut corners. If his parents want him to come home for holidays, then they can pay for that.</p>