Low[er] Income and High Assets that aren't easy to liquidate

<p>Hello!</p>

<p>I am currently a junior and my top college choices are selective, private, FA need based only schools. </p>

<p>My family (single-parent, single-child household) has about a $60,000 income, which means we would qualify for decent FA at private need based schools. However, my parent has paid off loans on nearly $1,000,000 of real estate (not including our home). Our EFC is far too large and makes all of these schools unaffordable without debt solely due to these houses (parent can still contribute roughly $28,000 each year from a savings account). </p>

<p>My question is: Should I simply give up on attempting to get into and afford these expensive schools (Columbia, UPenn, MIT, Stanford, Harvard, Duke, Yale, etc.)? Are there any other options at this point that can help the FA situation?</p>

<p>Note: I understand that having that much money in real estate is not "needing" financial aid. I'm just curious if the situation can be improved at all or if this is basically a "it is what it is" scenario. </p>

<p>Selling the houses is [assumedly] not an option, as this is where my parent's retirement is. I'm also aware that it is foolish to go $100,000 into debt to afford a "dream school". </p>

<p>Thanks in advance for any help anyone can provide. I'm relatively new to the FA scene, so apologies for any lack of information/false assumptions.</p>

<p>If you are really a competitive admit for these need based only schools, why not apply to some that give merit aid as well. Vanderbilt, for example. Also, look at the thread above for automatic full tuition and full ride scholarships. Something there might grab your interest. Stanford, Harvard, and Yale have very generous need based aid for your income…but with “typical assets”. Have you run the net price calculators on their websites to get an estimate of your potential aid and net costs there. You should do so for all the colleges you are interested in.</p>

<p>Your parent is a single parent, but all of the schools you mentioned require the CSS Profile, including the non-custodial parent form. Unless your dad is dead, or totally out of the picture, his financial info will be required as well.</p>

<p>Other parent (funny how you assumed it was my dad) truly is completely out of the picture. Does that impact the FA situation at all besides the fact that none of their information is submitted?</p>

<p>Also, I did a net calculator, and I didn’t qualify for any need based aid at any private schools that require CSS. After removing the assets, UPenn, for example, gave a $28,000 grant.</p>

<p>I will definitely be getting a good amount of schools that give merit-aid on my apply list, and I will also pursue scholarships quite ambitiously; however, it doesn’t negate that my top choices will still probably be schools outside of my financial reach. </p>

<p>Why would UPenn, for example, remove the assets? Your parent has those assets.</p>

<p>Your plan to look for merit is a good one.</p>

<p>Oh, I was just noting that the assets are clearly the primary reason for such a high EFC. </p>

<p>Something interesting I found is that, according to the Net Calculator, if we were to move to one of the other assets that has the most money in it (the one we currently live in has the most debt against it), then our EFC would be significantly lowered. </p>

<p>The value of assets goes from $900,000 with $40,000 debt to $400,000 with $450,000 debt. That would qualify for good financial aid at most need-based schools.</p>

<p>Time to start the hunt for the merit schools.</p>

<p>If you can move to the house that’s already paid off and rent the house with debt.</p>

<p>That’s exactly what I was thinking. I’ll be looking into that as a possibility…although it would certainly entail many logistical difficulties. Thanks for the insight everyone.</p>

<p>most or all of your css schools will require the info of your other parent.</p>

<p>yes, when you say truly out of the picture, do you mean deceased?</p>

<p>Well, here are some merit scholarship lists:</p>

<p><a href=“http://talk.collegeconfidential.com/discussion/comment/16451378/#Comment_16451378”>Automatic Full Tuition / Full Ride Scholarships - #300 by BobWallace - Financial Aid and Scholarships - College Confidential Forums;
<a href=“Competitive Full Tuition / Full Ride Scholarships - #50 by BobWallace - Financial Aid and Scholarships - College Confidential Forums”>Competitive Full Tuition / Full Ride Scholarships - #50 by BobWallace - Financial Aid and Scholarships - College Confidential Forums;
<a href=“NMF Scholarships: An Updated Compilation - #833 by BobWallace - National Merit Scholarships - College Confidential Forums”>NMF Scholarships: An Updated Compilation - #833 by BobWallace - National Merit Scholarships - College Confidential Forums;

<p>Yes, if your other parent is non-cooperative (or wealthy or high income), that can make for difficulties getting any need-based financial aid at schools which want information from the other parent.</p>

<p>You will need to get a waiver for the non-custodial parent Profile from EACH college that requires it. You will need to find out what each school requires for documentation that this parent is out of the picture…unless that parent is no longer living.</p>

<p>CSS profile would consider your primary home equity too, so moving around won’t help. It would only change your FAFSA EFC. Also, selling the property would only make it a cash asset. It would not give you more aid either. It is indeed up to your parent if they want to, and how much they would, support your education.</p>

<p>Since you have two significant issues that will likely mean not getting the aid that you need, you need to make sure that you apply to 2-3 financial safeties. These are schools that you know FOR SURE that you will get enough merit money for all four years so that any remaining costs can be covered with family funds and maybe a small student loan.</p>

<p>I was born from artificial insemination, so there is literally nothing to report on the side of my other parent. Not sure how a thing like that is handled. </p>

<p>As with the property, my parent won’t move anyways (not that it would make a difference). She also is unwilling to to liquidate them. So the asset situation is going to remain unchanged.</p>

<p>I guess the Ivies and my other private school choices are out of my league financially though…bummer.</p>

<p>Time to look through the merit schools!</p>

<p>

This is true for a lot of people so don’t feel bad. Chin up and move on! You will find a great place and it’ll work out fine.</p>

<p>You can give it a go at a few schools to see what comes up, however, a friend of mine in the same situation as your parent, did not get any aid. Harvard, where his son did end up going, wouldn’t give him a dime. They told my friend to sell the property, which would then reduce/eliminate the income he was getting from them which was their source of income. My friend and his wife decided to borrow the money, but they would only do so for the very top schools. Their son did get great merit aid at other schools, but they felt Harvard was worth the debt.</p>

<p>

Your friend must have significant assets and/or very high income.

</p>

<p>Well…Cpte said her friend was in a similar situation. The OP has $1 million in assets…and at 5.6% for FAFSA purposes! that nets a family contribution of $56,000 a year. </p>

<p>The 10% rule at these very generous schools has the caveat of “with typical assets”. $1 million in assets is a bit more than typical.</p>

<p>If (and it’s a big “if” for almost anyone) I get into a school like Harvard, Wharton, Yale, etc. then I will have to decide between name prestige with debt or a merit-school debt free. I suppose for now, I’ll continue striving for those schools just to keep options open, although significant debt is probably hard to justify.</p>

<p>Thanks again everyone for the advice! Cpte, would you happen to know if your friend thought the debt paid off? Or is s/he still in school there? </p>

<p>SirPingPong…who will borrow all of that money? You can’t get more than the Direct Loan amount in your name. Will your parent take out a Parent Plus Loan? Will they cosign loans for you? Will they qualify for $60,000 in loans for each of four years!</p>

<p>You have non-liquid assets, but younaremgoing to be asking your parent to take out a loan in excess of their income for four years if college? Really? Please don’t tell me you plan to major in finance!</p>

<p>If you truly have the stats to get into these highly competitive schools, you could very much be in the running for merit aid elsewhere. Start looking. That would be a safer financial thing than $60,000 in loans…at least…for each of four years.</p>

<p>ETA…your SAT and ACT scores are great. I think you would get a really good merit award from University if Alabama, for example…guaranteed…based on your stats.</p>