Is this reasonable to ask of my parents?

Paying for College
1

<p>Ok, so the tuition of the school I would like to attend is about $23K a year. I would be living in off-campus student housing, because the on-campus student housing is ridiculously over priced. Housing cost will be roughly $8K for the academic year. The household income is just above the $100K six-figure threshold. I know exactly how much they make, because they don't really have any problems with me looking at their finances, and their bank accounts. I'm not constantly snooping to see how much they make so I can get my hands on some money, they just don't see any problem with me knowing how much they make.</p>

<p>I have about $20K saved. I got it from when my biological father passed away long ago. My parents and I agreed that said money would be used to buy all of my college necessities, and other things throughout my years of college (Food, clothing, going out, ect.). </p>

<p>What I am trying to ask is, would it be completely out of line for me to ask my parents to pay about $33K a year for my education? Both of their cars are payed off, so is the house, and they have absolutely no debt, so there aren't really any outstanding bills. My little brother won't be attending college anytime soon. I don't see much of a problem with it.</p>

<p>I will still be applying for Financial Aid, filling out FASFA, and applying for scholarships, but we will still probably have to pay for most of the tuition. I don't know why, but for some reason my parents think that it will cost about $50K+ a year for me to go to college, when that is not the case.</p>

<p>So, what do you think?</p>

2

<p>

You should put that in a 529 savings plan. Otherwise it may hurt you some financial aid.</p>

3

<p>As 4kidsdad has said, that $20K will be hit up on the FAFSA and hurt you in terms of financial aid. You should have it in a 529 or in a joint account with your mom, with her name and ssn as primary. Parents get a protection allowance for assets and are hit at 5.6% on EFC. Students are hit at 20% Big difference.</p>

<p>You are asking for about $2700 a month. That’s a lot ot carve out of current expenses. Talk to them and see what they say about what they can and are willing to pay. Really, that is the bottom line. What they are willing to pay towards your college.</p>

4

<p>From my addition it looks like you’re asking your parents to foot the whole bill. You should do your share as well. Get a job over the summer and take some Direct loans. That would get their project share down.</p>

5

<p>Since you are so aware of their financial situation, do they have enough saved up in their retirement accounts? Check out Dave Ramsey’s website for advice on how much your parents should have saved up at their age. If they have not prepared for their own needs, which to you must seem like so far in the future as to be unimportant, then they may not be in a position to write $33K checks for you each year.</p>

<p>You are also assuming that nothing catastrophic will occur that would impact your parents’ ability to continue earning that income you are counting on to pay $33K in annual college costs. I hope nothing does, but life happens, and circumstances can change in an instant.</p>

<p>Are you expecting them to take on annual debt so that you can attend your preferred school or do they have $120K plus in the bank right now just ready to spend on your education?</p>

<p>And do you plan to contribute any money earned by your own efforts towards your annual expenses? Yes, you have that $20K inheritance, but, in my view, you really ought to put that into a savings account and leave it alone. Don’t squander that gift on going out.</p>

<p>Here’s an idea: negotiate with your parents. If they have the cash right now to pay your $33K in annual college expenses, then why don’t you promise to pay them back a portion of the salary from your first 7 years of employment once you have your degree? Talk with them about how much they had planned to pay towards your education. If they have the means to front the rest of it, then you can commit to paying them back, even interest-free, automatically out of your own paychecks once you graduate.</p>

<p>I do find this whole scenario so foreign to me. I never expected my parents to pay one penny of my college education, and they would have struggled even if they had wanted to. I did not want their money, because I did not want to ever answer to them as far as what course of study I pursued or what grades I achieved. Yes, I went to school in the 80s, before tuition skyrocketed thanks to the gushing flow of easy federal aid. But I worked every summer full-time during high school, worked during the school year, earned top grades and test scores, and had a resume full of activities, etc. and was able to attend a private university with scholarships and graduate with less than $2K in school loans. My parents sent me occasional care packages, but other than that, I lived the starving student lifestyle and paid for college on my own. </p>

<p>The thought of asking my parents to take on enormous amounts of debt or to tap their savings to pay for my education never once occurred to me. I could never in good conscience have asked my parents to pay this kind of money, and certainly not to take on Plus loans. My kids are applying to the best schools they can find that offer tons of merit aid and keep the out of pocket expenses to a minimum. I am in a better position to help them than my parents were, and I am committed to helping to cover their room and board (which they would get for free if they stayed at home and went to school locally.) Tuition? They have to either earn it via scholarships, or pay towards it with their own savings, and they will have to work to keep up the grades to keep those scholarships renewing every year. If they need to take out the automatic unsubsidized loans for $5500 (we don’t qualify for subsidized) then I am open to that, as long as the over all net cost does not exceed the budget for room and board.</p>

<p>If they want spending money, they will be earning that now and in a part-time job while in college. But my signature will never ever go on one of those Plus loans and I am certainly not using retirement savings to pay for their college tuition. It is not necessary to do so - they have access to very inexpensive Florida universities so college is always going to be an option. They may just not get to go to a “dream school” with a Net Price Calculator indicating $20-30K or more in annual net costs.</p>

6

<p>It’s easy to spend other people’s money. Whether we think something is reasonable or not doesn’t really matter. What your parents are willing to spend is what matters. That needs to be your starting point.</p>

7

<p>You’re allowed to ask for whatever you want. You’re parents are not obligated to say yes.</p>

<p>Sit down with them, show them the costs of your school, and ask if they are willing to contribute. If they are willing and able, ask how much. They may be willing to foot the whole bill, but they also may not be willing or able to. Discuss if they would be willing to pay for your education as an interest-free loan, or if they are willing to gift you the money. In the event that they don’t contribute to your college expenses or they only agree to pay a portion, start to come up with a plan to foot the bill on your own (look into loans, financial aid, scholarships, merit money, jobs, etc).</p>

<p>I would never ask my parents can I have X amount of money each year to go to school, but I would be willing to ask if they would be willing and able to contribute. You may have a different relationship with your parents.</p>

8

<p>Is it out of line for you to ask? No.</p>

<p>Is it out of line for you to expect them to pay more than 30% of their gross income? Yes.</p>

<p>$33k sounds like roughly the full COA. You already have $5k/year from your inheritance. You can earn roughly $3k during the summer and another $3k working 10 hours/week during the school year. That would knock more than $10k off the total, even without considering scholarships and financial aid.</p>

<p>Remember, it is your parents’ money and legally you are now an adult. Anything they give you at this point, including a home and food, is based on their values and generosity. Remember to say thank you.</p>

9

<p>Just over 100k in income (with not too much in assets), probably won’t even generate a FAFSA EFC of 33k (depending on family size, etc). You’re asking for more than the EFC. You can ask, but yes, I think you’re out of line.</p>

10

<p>I agree with ordinary lives.
Her EFC will probably be around $25,000 if your sibling is 11 or under- although CSS EFC is likely to be higher given the home equity.</p>

<p>Your parents need to determine what they are comfortable paying from loans current income & savings.
You need to add scholarships to that along with Stafford loans, summer income & your inheritance to determine the price range of schools to consider.</p>

11

<p>You need to be reasonable. You need to ask how much they WILL/CAN pay each year and go with that.</p>

<p>Your $20k in savings is going to hit you hard for EFC. Will you need a car for college, if so, you may think of buying a good reliable one that will last for years.</p>

<p>Do you have high stats (GPA and test scores)? If so, then you can supplement your parents’ contribution with a good merit scholarship from a school. What is your major? What are your stats?</p>

<p>It sounds like you have a mom and stepdad. It’s unlikely that they’re going to want to pay 1/3 of their income for college…no matter what their debt situation is.</p>

12

<p>If you are applying to a private university, your costs could very well be about $50,000 a year. Look at the cost of attendance on your college choice website. My guess is your parents are NOT far off.</p>

<p>If you are planning to live in off campus housing, you will probably have a 12 month lease. This means you will be paying for that lodging in the summers whether you are there…or not…or you will have to find a subletter…which sometimes is not even allowed.</p>

<p>And check because many colleges require freshmen to live on campus.</p>

<p>Your parents sound like they are open about their finances. That being the case, ask THEM how much they will contribute to your college costs each year. If they say $33,000, you are fine. If they say less, you will need to work within their financial limits. You can look for colleges where you might garner merit aid to soften the blow. At most colleges, you would get very little need based aid anyway with a family income in excess of $100,000. You would get some need based aid at some of the more generous universities…but they are also very competitive for admissions.</p>

<p>The $20,000 you have in the bank…$4000 of that will be added to your EFC for the upcoming year. The college will likely expect this to be paid for their costs (tuition, fees, etc) first not your personal expenses. This $4000 will actually reduce your financial need by that amount.</p>

<p>It sounds like you are applying to a private university. Does it require the CSS Profile also? That delves more deeply into your family finances.</p>