Ok, I think I can change my application to be a full-pay student if y’all think this could work. My parents have both agreed to do this because going full pay would raise my chance of admissions at my non-need-blind schools.
They’ve always had the money to pay for BS in full but they’d have to dig into savings which this method would allow for the savings to not be affected.
-Put 60k minimum into the S&P 500 on Jan. 1
-Continue with $1500 a month for 15 years and let it compound estimating a 5-7% annual return rate
-Take out after 15 years and make more than enough to pay back tuition
As I said, they can pay the 60k tuition when it’s due but they’ll do this to make it back + more.
Also, they could go into my trust fund set up by my grandparents if the annual return rate was too low, which I’d allow.
We came up with putting 60k upfront because that’s 1/4 of the tuition but all spent at once. Do you think we’d need to bump this up to 100k? Or even have it as 240k just so they make a ton of money? 240k upfront would be around 517k profit at 6% returns, whereas 60k upfront is only 255k.
They should save and invest as much as they can regardless of whether you are full pay to boarding school. It’s just that if you get some financial aid, they’ll be able to save and invest more.
Well, they’re obviously investing a ton anyway, especially since they just sold 2 of our “extra” houses to help retire early. Now that they have cleared those extra property taxes and bills out of their pay, they can invest in this. This would allow me to be able to go to BS under full pay which has a higher acceptance rate than if you were to apply for FA. I was just asking if that’s a smart investment, especially since they could potentially get 300k after the 15 years just for their retirement.
The thing is, boarding schools reject you if you’re applying for financial aid and either don’t qualify, or they don’t have enough FA left in their budget. You list on the application if you’re applying for FA. Full Pay students have a much higher chance of acceptance because of this.
Let me make it easy for you. You’re not getting FA under this scenario. FA is for families that need it, not for families that don’t want to pay or who opt to pay OOS tuition for their older child or who simply need to tighten their belts.
How nice of you to “allow” them to use their money as they see fit.
You’re just a kid, we get that, but in addition to what else has been said above regarding conditions for financial aid, you’ll learn one day that investing in stocks doesn’t provide a guaranteed successful outcome over a finite period of time.
I can see that you’re financially savvy and trying to think about parents’ financial planning which is really nice. For a long horizon financial need, investment in S&P is good. But for a near term financial need (paying tuition in the next four years), return from S&P could be too uncertain - what if the market crashes by 40% in the next 3 years? Though, it sounds like you could still tap into your grandparents’ trust account in that scenario so maybe you’re still fine.
If you read that correctly, you’d see that I said from a trust fund NOT set up by my parents, but by my grandparents, meaning it isn’t their money.
They say that they could pay if it meant getting the money back. To pay this though, they’d have to be very frugal and would still be a stretch to pay because of my brother’s college tuition.
The trust fund isn’t in me, or my parents’ names which means that we can’t put it in our application. And those two homes were inherited from family.
Yes, I do know this is true, but this would be the only way for me to have “full-pay privilege” especially since we might not be able to qualify for FA.
I don’t want to come off rude, and I’m only making a comment to better you. I’m just a kid so take what I say with a grain of salt. For starters, agreed with the post above. This forum is a place to talk about prep schools, not money. That’s what a financial advisor is for. Second of all, with your attitude on this forum, I can’t foresee many acceptances March 10th.
I never asked for your response on my stats. The OP and I have very similar stats. I am also applying to much more schools than him(that are also less selective). This is not a chance me thread, and your response was very rude in my opinion. Again, your response to me was very unnecessary. Don’t want to come off rude again, but stats aren’t everything. OP scored similar to me on SSAT(mine was slightly higher) I have more community service, and more ECs. OP applied to very selective schools. To be honest, I don’t really care what you think M10 will look like for me, as it was uncalled for. I’m not mad or upset, just disappointed with your attitude. You should know better than to me rude to a teenager.
Practice tests mean nothing. I also scored near perfect towards the end of my practicing session. Ended up with a 79th%ile. I’m one person on the internet. You speak about my “unnecessary” M10 comment, yet you make a comment about my acceptances in a rude way. I never meant to be rude to the OP, and I’m sorry if it sounded that way. SSAT scores don’t mean much, and I most likely won’t even submit them to schools where they are not above average.
I agree with @lilyesh and @BrwnBoy0302 in this case. Though you didn’t ask for my input, I would still like to give my two cents. First, we are mostly applicants (12-17 year old TEENAGERS) and in the case we aren’t, then we are usually just parents of teens with not enough knowledge on @jackb192 's case. We can give advice, but it should 100% be taken with a whole shaker of salt and we are NOT AT ALL better than any financial advisor he would be able to hire. We are genuinely advising him not to ask random strangers (who are mostly just young teens) for financial advice, because what we give him is most likely not going to be the best advice.
The only thing I agree with you here is that OP should not have come across as stuck-up. As most of us know very little about each other, it is very easy to judge a person based on their attitude towards others in their posts and replies.
From what I see, you are no admissions officer, so you have absolutely no right to say who gets in, and what you said to lilyesh is very insulting. Maybe in your eyes, OP has better stats and EC’s than lilyesh, but admissions are not just your SSAT score and how many sports you did. After I got to know lilyesh more, I can tell that her personality is extremely likeable. There is no “hard truth” to what you said, and it just seemed like an opportunity you took to jab at lilyesh for a genuine reply to help OP.
I think this discussion has gone off-topic and further discussion is unnecessary. @lilyesh made a mistake by mentioning a bad M10, just like the OP did by mentioning financials (if at all). We should forgive and move on, and bring conversation back to what the original topic was on and help the OP rather than arguing in the replies.
We should all move on, but as many people have said this is untrue.
I think it’s safe to say we should both stop commenting on this thread. We are simply strangers on the internet, I am just a kid, and you aren’t an adult either.
