<p>A few weeks ago while applying to the UCs I found out we only make $52k a year (annual income).</p>
<p>And a week or two before I found out, my dad told me that he could pay up to $40,000/year for NYU Stern if I get accepted.</p>
<p>I became convinced that my grandparents are helping us, as there is no way my parents could pay even half of the $40,000/year with our annual income.</p>
<p>Im wondering is it common for grandparents to help out, especially with pricy private colleges like NYU?</p>
<p>Do your grandparents have a lot of disposable income?</p>
<p>How do u know whether your parents are disclosing to u all of their income sources, or are planning to take out a second mortgage on their home? </p>
<p>Instead of asking complete strangers on the internet where the money for Stern wd come from, why not simply ask your parents? </p>
<p>I cannot see how it helps you to know of other people’s financial arrangements. You need to be realistic about yours and try to have an honest conversation with your father.</p>
<p>@Jarjarbinks23 Does your dad own his own business?</p>
<p>It certainly happens if the grandparents are wealthy. The only problem is that most of us don’t actually know your grandparents so we don’t know if they are paying or if your father has some kind of assets (529 plan? trust fund?) that he is planning to use, or if he’s planning to rob some banks or counterfeit money or something. We don’t have any information on that. Grandparents CAN help, but so can uncles, aunts, distant cousins, or maybe even a boss or a community group.</p>
<p>There are some affluent Grands that pay or help pay, but the fact that your dad didn’t mention that “Grandma Mary and Grandpa Joe want to help pay,” suggests to me that your dad is paying. Your dad may be planning on borrowing against the equity of your home or he may have been quietly saving for a long time.</p>
<p>This would be my only concern: If your dad is planning on emptying his savings or borrowing largely from him home, does he have any expectation that you will either pay him back or support him in his “old age”? There are a number of families, particularly immigrant-families, that will drain nearly all their finances to send a child to a “prestigious” school because they think the child will then go on to earn oodles of money and easily support them later. If that is your dad’s thinking, you need clarification on that. Keep in mind that if your dad does expect to be paid back or he expects you to support him (and mom?) years from now, any significant other or spouse you may have, may think quite differently (or that partner may have a similar deal with their parents…and you could end up supporting 4 parents! lol.) So, it’s just something to get clarity about and go in with your eyes open. </p>
<p>Unless you’ll be in Stern and later you’ll be working on Wall Street, going to NYU will not yield a better paying job…and just extra spending would likely be wasted. </p>
<p>Is it “coomon” for grandparents to help financially? That would depend on your definition of “Common”. I don’t think it’s a bit unusual that grandparents contribute to their children and/or grandchildren. But what % pay for their grandparent’s college costs over a beyond some gift amounts in the hundred dollars range, I don’t know. It does happen, yes, enough time that it’s not uncommon. </p>
<p>Who gives your parents money and other financial dealings of theirs is their business. You can ask, but if your parents don’t want to share that info with you, that’s up to them. </p>
<p>@mom2collegekids Yes, he owns his own business… he’s self-employed.</p>
<p>I looked it up and according to all the sources I found (its annual revenue is $150,000 - $170,000).</p>
<p>And somehow our annual income (my mom doesnt work) is only $52,000?</p>
<p>I highly suspected that your dad owns his own business…</p>
<p>Just be aware that at CSS profile schools, they’re not likely going to accept the idea that your family only earns $52k …they’re going to add back in some of his deductions.</p>
<p>@mom2collegekids could you please explain to me how is it that my dad can say his income is $52k while his revenue at his 1-man company is more than $150,000? </p>
<p>lol…</p>
<p>Well, there’s a few ways…</p>
<p>What is his business? Does he run it out of his home? or does he own or rent a building for it?</p>
<p>He may have depreciation costs, inventory costs, building costs? </p>
<p>Does he have savings? Retirement savings? Does the business have savings?</p>
<p>Many business owners take business deductions that are allowed by the IRS for tax purposes. HOWEVER, private universities that use the Profile, and /or ask for your complete tax return including all schedules…sometimes add back in a portion of those IRS deductions as income. In other words…they don’t allow all of the same deductions for financial aid purposes.</p>
<p>For example…if your dad’s office is in your home and he deducts a a portion of hluse expenses as business expenses…these might get added back in. The reality is that your family would have those expenses anyway. Same with a car that is used for business and personal use, computers, utilities, etc.</p>
<p>Of course this varies by college.</p>
<p>The other thing…your dad’s gross income could be that high, and he could be contributing a significant amount to his SELPA account for retirement. Those contributions will be added back as income…any made in 2014.</p>
<p>If your fsmily gross income is $150,000, I doubt that your grandparents are helping out.</p>
<p>I also remember someone posting awhile back that they were keeping their savings as “business savings” so that they didn’t have to declare it on FAFSA. A CSS school would count it, but if this is possible, then a FAFSA school wouldn’t. </p>
<p>I guess that would mean that the business owner is drawing a lowish salary while keeping much of the money in the business.</p>
<p>What kind of business is this? If we knew, we could better describe the possible deductions…cars, gas, rent, etc.</p>
<p>I would doubt your dad would appreciate this discussion in public LOL, go and ask him to explain small business finances. </p>
<p>@mom2collegekids well lol I know he runs a consulting firm… I’ve been to his office. Its a relatively large room rentd out in a large building, in which there seem to be many more small businesses renting out the other rooms.</p>
<p>He also travels outside the country a few times a year in order to talk with clients.</p>
<p>In the simplest terms, revenue is what he takes in every year when clients pay him. Out of that comes expenses to run the business, like the plane tickets to travel outside the country a few times a year and the rent he pays for his office. What’s left over is profit, out of which he pays himself. That’s how the business can have annual revenue of $150k - $170k, and yet your dad has an annual income of a significantly lower amount.</p>