<p>I need a bit of help determining my financial status relating to college...so any help is appreciated :).</p>
<p>First off, I live in a wealthy area. Northwestern NJ. There's a lot of money floating around up here. However, the property tax is horrible around here. My parents makes about $150,000/yr. combined, however, both pay an excess of $20,000 in taxes. It wouldn't be so bad if it weren't for another problem: my parents are in debt. They recently started a new buisness, and frankly, the building itself was expensive enough. We now owe about $1.7 to the bank, but the interest is very high. I'm not going into numbers in that, but it's very bad. We might have to move to a different, smaller house in the town if we want to keep our buisness.</p>
<p>Now, for the question: Will colleges take this into account? I know my parents make a lot of money, but they really can't support my education. I doubt they would be eligible for loans at this rate as well. Will colleges merely look at the amount they make, or will they be more sympathetic with the new buisness?</p>
<p>Personal debt is not considered in the equation unless there are some life threatening circumstances like an organ transplant involved from most financial aid offices. However business debts can offset the value of a business as a mortgage can offset the value of a house. The way that financial aid is calculated is primarily on income, and the fact that you live in an expensive area and have high taxes are not in consideration. There are just too many kids in your situation who have already moved into smaller houses, and whose parents do not have the income your family does. They will most likely be eligible for PLUS loans.</p>
<p>remember too, that probably like most folks, their debt is at least to some degree a choice. Might they have chosen a neighborhood- for example 30 minutes from work- and found a cheaper house? how many cars? what kind of cars? vacation homes? take regular vacations? jewelry?
If like many families they have chosen the best they could afford in these, and similar areas, then simply put, they weren't planning on the cost of a youngster's education. 50k or 150k, you can't wait until the kid grads high school to start planning for college costs.</p>
<p>The FAFSA finaid calculations also do NOT consider the cost of living in the area of the country in which you reside. The amount of taxes you pay is also not considered. Only debt for extenuating health situations is considered. Other debt is considered elective. If your family income is sufficient, your parents will likely receive offers for PLUS loans (as stated here already). The important thing for YOU to do is have a serious conversation about college expenses and family contributions, and loans BEFORE you send your applications out. We have read too many posts from disappointed students who found out the family finances AFTER they got their acceptances...and those finances did NOT support the school of their choice. Please be sure to discuss this with your family ASAP.</p>