<p>I'm reading alot of threads about "no loan" packages for families with income under $60,000 but very few illustrate how the asset-income ratio works. I can't believe these colleges don't consider assets? How do these "no loan" colleges calculate who qualifies for these no loan packages? Our EFC is moderately low and with one income and one retired our adjusted gross income is not high at all, but most of these colleges require profile don't they? - and in our case we have assets (like our house and other things) that are high but not impacting in FAFSA..how do these college play that scenario out? We're writing checks for number one, but will have an overlap with two in college and then again an overlap with number three. I'm trying to figure out our financial strategy before two becomes serious with his college list.</p>
<p>Again I say...most of these colleges with the "no loan" financial aid packages are HIGHLY competitive for admissions. The first hurdle would be to get accepted. At many of these schools things like your home equity are capped or not taken into consideration when financial aid is awarded. To be honest, I'm not sure I know how these schools treat non-retirement savings. </p>
<p>But I'll venture this one, your child #2 should be at the top of the admissions game if he/she is considering applying and getting accepted to Stanford, Yale, Princeton, and the others in the list of colleges that have the no loan policies for financial aid. </p>
<p>I will also say that if the student does have the "stats" to be considered for admission into these schools, they might also look for schools with lower stats where merit aid might be awarded to them.</p>
<p>We're writing checks for number one, but will have an overlap with two in college and then again an overlap with number three. I'm trying to figure out our financial strategy before two becomes serious with his college list.</p>
<p>That was smart spacing.
Mine are 8 years apart, so not only is only one considered for EFC at a time instead of splitting it, the older one is not even our dependent anymore. :(</p>
<p>I got married older so didn't have the luxury of spacing :-), kept trying for a girl and stopped at boy 3 plus I was just getting too tired! Never thought I'd get married let alone live in a household of males.</p>
<p>Stanford is one of the "no loan" schools. From Stanford's website:</p>
<p>For applicants who report total annual parent income up to $100,000, we generally consider “typical assets” to be an adjusted total net worth of less than $250,000. Adjusted total net worth usually reflects the sum of the following amounts: </p>
<p>Cash, savings, checking
Investments
Home equity, capped at 1.2 times annual income
Equity in real estate other than the home
Business net worth</p>
<p>What if someone's family has a quite successful business and has like a million dollars in assets but business was doing terrible the year they filed their FAFSA and so their adjusted gross income was 20,000, would they qualify?</p>
<p>If the family owns the business, they would have to file the long form 1040 tax form and therefore would not be eligible for the simplified needs test whereby assets are not reported. In other words, the assets would have to be reported.</p>
<p>1040 long form pertains to personal taxes only so the $20,000 in income would be reported and a short form could be filed as there would most likely be no tax owed on this amount. </p>
<p>If you qualify for the siimple needs test you are in a better position; however if you sold stocks you would need to use a long form regardless of your income in order to report the stock sale. Always file a short form if possible.</p>
<p>If the business is incorporated and has 100 or less employees different rules apply.</p>
<p>Findmepete....if you are self employed...own your own business...you cannot file a 1040EZ or a 1040A.</p>
<p>thumper is right ^^^^^^ You cannot file the short forms if you are self employed.</p>
<p>But it is a moot point as far as this thread is concerned. The schools that offer the no loans package for incomes under $60k almost universally will require Profile as well as FAFSA. As far as I know there is no simplified needs or automatic zero on profile. All assets will have to be reported.</p>
<p>And to answer AznPwnd's question - I would hazard a guess that a person reporting a million dollars in assets would not qualify for the no loan program as they do take assets into account. However that is pure speculation on my part.</p>
<p>But--- my D's school is a "no-loan under 60K" school, and only required the Profile for the first year, before the new policy went into effect. We had to only file FAFSA and the necessary documents for the renewal. I suppose some of the Profile info was included in the school's own specific renewal app anyway, but as I recall, not all of the Profile info. </p>
<p>It's so weird how it changes with each school and the results swing so wildly!</p>
<p>Does anyone have a complied list of any of these "no-loan under 60K" schools because? </p>
<p>I know Cornell, Stanford and the 5 Claremont Colleges have that policy.</p>
<p>You can be self employed and file a short form if the business you own is incorporated as an s or c corp rather than filing a schedule c with your 1040 form.</p>
<p>Essentially, you will have a personal tax return 1040 ez, a or long form and a corporate tax return. Private and public schools treat information differently so it is important to know where you will apply before thinking about rearranging assets, etc. Collegeboard puts out an excellent book, I believe it is called "How to Pay for College without Going Broke". The book includes sample FAFSA and PROFILE forms. It is worth the investment.</p>