@intparent I think it would be far more presumptuous and insulting to grandpa to ask him for an advance or loan against one’s inheritance. As the OP says, he’s never promised an inheritance. If I’m in grandpa’s shoes, I’d much rather be asked for an outright gift rather than a part of one’s presumed inheritance.
@austinmshauri I mean, many low income students don’t apply to some pricey schools because they see the sticker price and get intimidated with out considering merit and need based aid. I’m not going to not consider pricey schools when there is merit aid out there. The net cost after subtracting aid can’t be $70,000. No college is $70,000 so I wouldn’t need to borrow $35,000 per year anyway. My EFC will be $70,000 in 2 years. That’s all I was saying. But there is a chance for me to get merit aid. I know what the limitations are for me loan wise. But my parents can cosign loans with me.
@intparent Could you explain what you mean when you say a loan against a future inheritance?
Will your dad or You be getting an inheritance?
@mom2collegekids I know for sure that he is getting his house. I just asked my mom if my dad will be getting an inheritance and my mom replied by saying “I don’t like the way that question sounds.” So there goes that lol
You could explain to your mom why you are asking. Here is a sample scenario:
- Say your Grandpa has $1 million in assets when he dies (total left after estate expenses like attorneys, etc.) to distribute among 4 children, and his will leaves his money equally to all of them (a common scenario). That is $250,000 per child. So your dad is in line for that amount.
- “Borrowing against the inheritance” means that your dad gets his 1/4 LESS the amount that was given to you for college. So if Grandpa gives you $50,000, your dad gets only $200,000, while his 3 siblings get $250,000. Payments are not always in cash – say Grandpa’s house is appraised at $150,000 when he dies. Then you dad might get the house, plus $50,000 to get to the $200,000 total.
As it stands now, if Grandpa gives you $50,000 and does not tie it to the inheritance in any way, then there is $50,000 less in his estate when he eventually dies. So all the siblings split $950,000 instead. Which comes out to $237,500 per sibling (including your dad’s share). So everyone else gets less because your grandpa paid for your education (not just your dad in the first example).
My parents have made loans to me and my siblings over the years (real estate loans). We do a formal loan document, and the loan paperwork is filed with the county so the encumbrance against the house is public record for any other lender we might approach for a loan. If my parents die before a loan I have is paid back, the amount of principal still due will be taken out of my share of the estate. So if I still owe $25,000, then I will get $25,000 less in inheritance.
Your parents could ask your grandpa for a formal loan for your education instead of you asking for an outright gift.
@intparent Okay, that makes sense. Thank you 
I will talk to my dad. Perhaps he will be more receptive.
Northwestern is $66k+, so with transportation it could easily hit $70k.
What schools are you talking about? With one sibling already in college, your parents aren’t new to this. Your comment in post #4, that your parents “won’t give you a solid number” for what they’ll contribute, concerns me. You’re trying to come up with a way to convince your grandfather to cover the difference between your parents’ $35k EFC and the COA (after merit aid), but you really have no commitment that they’ll pay $35k. Aren’t yours the parents who are loaning their oldest child $7k/year to go to the local SUNY? What makes you think they’re going to GIVE you 5x that amount?
@austinmshauri That school was the only place my sibling could transfer to after going to community college. Yes, I don’t have that solid $35,000 as a number. But I know my families financial situation and we would be able to manage that. Northwestern may be very pricey yes, but if I got in, my first two years would be no more than $35,000 and then I would be asking my grandfather to help cover the difference after that in addition to me taking out loans my final two years. And, I am also in the process of applying for scholarships. So the lower I can get the COA for these first two years, the less I would have to ask my grandfather for.
Hypothetical situation-planning could prove to be disappointing.
The acceptance rate for Northwestern University was 12.9% for the current class of freshmen. That is a very low acceptance rate. At this point, you don’t have an acceptance from Northwestern. I would,suggest you wait to see IF you actually are accepted, and also see what your financial aid looks like. Any conversations now regarding costs are making the assumption that you will,actually be accepted to a more costly university than the affordable ones you have already in the bag.
As noted, IF you get accepted to NU, and IF the money discussion is going to happen, it might actually be better in the context of what this school can do for you that the others cannot. I won’t even give you my opinion…but your grandpa deserves to hear all of the facts, including the offers you have that are less costly.
You yourself told someone else that Harvard had such a low acceptance rate that it was not a sure thing for anyone. NU is pretty close in terms of low acceptance rates. Not a sure thing.
So…wait and see what happens.
I agree with #128 and #129. I do need to wait. But I was just interested in knowing for the future whether or not I could ask and how I would. I got a lot of helpful advice. Thank you.
If your sister graduated from a NYS cc she had guaranteed admission to a 4-year SUNY school. Are you sure the college she’s attending is the only one she could get into and not the only one your parents would pay for?
We see students every year who think their parents make enough to be able to pay $30k or more/year for school and are surprised when they won’t. Don’t assume what they’ll pay, ask your parents to tell you up front how much they’ll contribute to your education per year. It seems like they’re reluctant to tell you, but you really need that number.
I didn’t think Northwestern gave merit aid. If that’s true and you don’t qualify for need based aid, I don’t see how you can afford that school even if your parents do give you $35k/year. If they’re making your sister pay them back the $7k/year they’re paying for her school, I’d assume they’re going to make you pay back anything they borrow for you. You’re talking about $100k+ worth of debt. Students shouldn’t borrow more than the $27k worth of federal loans ($5500-7500/year x 4 years) for undergrad.
All students should have a safety. Pick one that you’re sure you can get into, that you can afford, and that you’ll be happy attending. As acceptances and financial aid packages come in, discuss them with your parents and see if they can be made affordable. I think a lot will depend on how much your parents will contribute.
Good luck.
Austin. This OP HAS her safety schools aleady…Minnesota and Alabama. She just wants to go to NU…and that one is too pricey.
Your grandpa is 90 and you’re saying that you need help two years from now? Your grandpa may not be alive or even able to contribute at that time. His wife may have control of his money at that point.
If you need money to pay for NU, then get it NOW. It’s better to have gramps pay towards the first two years and have parents bank that money or bank their own, and then have that banked money for later.
@mom2collegekids I guess that would make more sense lol and it not like I got into NU. I’m just considering options when I get my acceptances from schools in the upcoming months.
I should just make it known that I’m not prestige hunting. I’m not only applying to Northwestern. Northwestern in in fact the only school I applied to that doesn’t give aid and is “elite”. This thread is really catered towards school that give merit scholarships. M2ck brought up Northwestern as a comparison for stats, but I don’t anticipate getting in.The other schools on my list give merit aid and some of them a pretty generous, so I’m banking on that.
And again, it was the only one she got into. It had nothing to do with the cost of attendance. I’ve said that many times now.
[quote=calicash} I will not be going to SUNY Albany. I already got into Alabama and Minnesota and those would be affordable options. I honestly don’t even know why I applied to Albany.
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Are you a NYS resident? If you are, hopefully you applied to and will keep albany alive because it is a financially feasible option as a NYS resident. If you are in the top 10% at your school, are a STEM major and are willing to work in a STEM field in NYS, then you will get free tuition at Albany. You believe that your current EFC which is ~ 70k will be 35k once you start college.
However, if your sibling is going to the local SUNY and commuting from home, NU will take that into consideration. THis means that your EFC won’t be split in half unless you are going to comparably priced schools. This means if your sister is going to SUNY CC and living at home, they will consider that your parents are paying ~ 10k (tuition, fees, books, transportation expenses) or 20k if they are living on campus, meaning that your EFC at NU will be more along the lines of 50/60K vs. 35k
@sybbie719 It’s not like I even got into NU. I’m waiting still lol. But my EFC is 35,000 for the first two years. I’m pretty sure that means that my parents can’t pay more than $35,000 per child. And again, no I am not going to Albany. I got into Minnesota and Alabama and those are both affordable. I could be full pay there and it would be affordable but luckily I got a scholarship from Bama and will likely get a scholarship from UMinn
How are you sure that your family contribution for NU will be $35,000 for the first two years? If you are basing that on the net price calculator, keep in mind…that is an estimate. Your actual family contribution could be much higher.
If you get accepted at NU, it is very possible they will ask where your sister is attending college…and the cost of attendance at her school. You will definitely have to provide a verification of enrollment for your sister. If they ask, you will be required to provide the information. Some schools actually look at the actual costs of a sibling in college, and adjust need based aid accordingly. This means, if your sister attends a school that only costs $7000 a year, your need based aid could be reduced significantly…if that is a figure NU uses.
On the CSS profile they do ask where the sibling attends and how much the parents pay. NU will also ask for verification and will adjust their need based aid accordingly especially when they see what parents are paying for sibling college.
I hate to state the obvious, but I suppose you have followed the logical waterfall:
Not all schools meet 100% of demonstrated need; so amount of aid = (% of demonstrated need met)*COA.
COA is met by providing need-based aid (NBA):
COA = EFC + Max allowed loans + work-study + scholarship/grants + Shortfall
(Some schools will have no shortfalls and no loans.)
Therefore, you may already be on the hook for loans + work study at some of the schools, in addition to the EFC (which may be adjusted due to your sister’s tuition). This is all such speculation that it begs waiting to know what is offered.
At that point you may wish to share the packages with your grandfather and ask him if he can be a part, in some way, of the “Family Contribution” of the EFC- preferably through a loan (secured by any eventual possible inheritance) with promises by you of regular updates, and working as hard as you can to live up to the family name.
There is a lot up in the air here. Luckily, you have some concrete back-stops. As things become more clear, involve your grandfather in the discussion, as well as your parents, if you are truly so close to him. He may have great wisdom.