<p>My current income is in the 50-70k range. Spouse has been unemployed from a six figure job for over 2 years, with no end in sight. We have accumulated significant assets (400k in funds, 800k in retirement plans, 500k home equity). Our single income is not enough to pay the bills (high cost area) so we have been dipping into those funds to cover living expenses. We are hesitant to use that money for college lest we run out of money for living. We have one kid already in college on a full tuition scholarship, and another HS junior starting the search. I am aware of the good merit aid schools, as kid #1 already making use of that info. Are there any schools that provide good need-based aid to families in our situation?</p>
<p>Basically, you look for schools where your student is in the top echelons for consideration of aid, both merit and financial aid. Have you checked out what your EFC is and what the 100% need provided schools (some that might interest your student and be possibilities) would want you to pay per year?</p>
<p>Any college with good need based aid will take your assets into account. The retirement funds will only be considered for a few schools. Some won’t expect you to tap into your home equity if it’s your abode. The general funds will be used (at 5.6% this would come to $22+K available).</p>
<p>^ can you list some schools that don’t consider retirement funds or home equity?</p>
<p>I think a lot depends on whether you’re looking at schools that require CSS/Profile in addition to FAFSA. CSS/Profile schools will, I believe, take into consideration any equity in your principal residence as well as qualified retirement accounts, while FAFSA will not. However, the $400k in non-retirement investments will be counted for both CSS/Profile and FAFSA purposes, and that will seriously hurt your chances at getting need-based aid under either system.</p>
<p>I would be very concerned about those assets, unless accepted to HYPS. </p>
<p>Besides, once that older child graduates, you’re going to get hit with a much bigger bill.</p>
<p>Since you say that your spouse won’t likely find a job in the future, and you’re having to use savings to live, I think going the route of “huge merit” is your best bet.</p>
<p>What kind of stats does this child have (or likely will have)?</p>
<p>Interestingly, I just ran some net price calculators. Penn is showing grants and scholarships of $30K, bringing net cost down to $32K. Vanderbilt is just a bit less generous but same ballpark. Duke shows lower grant, with loans, leaving net cost over $40K (plus loans). Dartmouth shows no aid at all, $63K net cost. Four comparable-class schools, aid all over the map.</p>
<p>I’ll have to rerun to see what happens when kid #1 graduates. We will certainly be looking at the “huge merit” route, which kid #1 has taken. Kid #1 had 3.9 uw, 32 ACT. Kid #2 has similar grades so far, so should end up in the same GPA range. Hasn’t even taken the PSAT yet, so no idea about scores, but I expect similar.</p>
<p>I’ll have to rerun to see what happens when kid #1 graduates</p>
<p>With the numbers that you’re seeing with 2 in college, your numbers will really rise with only one…especially since at that point, your family size will go down to 3.</p>
<p>$50,000-$70,000 isnt typically what is considered low income.
State schools could be affordable, does your state have agreements with bordering states for lower than OOS tuition?</p>
<p>If your spouse hasn’t been employed for two years, you must be tearing your hair out. Has he/she entered a retraining program to become more employable?</p>
<p>^ Our in-state options are fine as safeties, much better than bordering states’ schools. I’m not too worried about finding an affordable school. Between in-state and “huge merit”, we should have decent choices. I’m just looking to see which top schools might be advantageous with our financial situation.</p>
<p>Spouse is very much employable, just not looking to change careers. After many years of studying and exams to reach the highest certification level (rare, and usually in demand), there’s no interest in throwing that all away to do something else. Fortunately we have had the means to wait for the right opportunity.</p>
<p>If I have the ability to move money around, is it possible to reallocate assets in order to lower EFC and increase aid? Kid will begin college in 2015.</p>
<p>Your income in 2014 and your assets at the time you file FAFSA (January 2015) or PROFILE (Oct 2014 for any EA schools that require it) will be what determines your financial aid for the 2015-2016 school year.</p>
<p>What you can do now is max out your retirement contributions. You can also give irrevocable gifts, but since you say you’re living on savings this probably wouldn’t be wise. If you have a mortgage you can pay it down, but this won’t help for PROFILE schools that ask for net equity of your primary residence. The only other option to move assets from reportable to non-reportable for financial aid involves the purchase of an annuity, but again not a good idea if you need to live on your savings.</p>
<p>In the end, income is a much bigger determinant of financial aid vs assets. It seems to me that it’s better to retain your savings to use for living expenses and to help pay for college.</p>
<p>I don’t see how you can “move money around” that will escape CSS Profile. CSS Profile looks at everything. </p>
<p>What do you mean? Give the money away? </p>
<p>You have about $900k in assets (equity and savings) that aren’t in retirement accts (which is another $800k). </p>
<p>You have roughly 1.7 million in assets. </p>
<p>To be honest, I think your H should get a job, so you’re not resorting to financial gymnastics that likely won’t work anyway.</p>
<p>And, if that’s not gonna happen, then look for schools that will give merit for stats.</p>
<p>You can max out your retirement contributions BUT these contributions for your FAFSA year will be added back in as income. The money IN the retirement accounts is not counted as an asset…but the contributions will NOT reduce your income for that year.</p>
<p>I’m trying to figure out what you mean by “moving your assets around” for financial aid gain.</p>
<p>I would suggest that your second child do what your first has done…look for merit scholarships.</p>
<p>If your husband really has no job potential, and you really can’t afford where you currently live, you could consider less costly housing in a less expensive area. To be honest, in the long term that MIT be better than using all of your savings for day to day living expenses.</p>
<p>^Interesting that some posters have made the assumption that the “spouse” is OP’s husband :).</p>
<p>Good point, Sylvan. I’ll amend my post to say…“spouse” instead of “husband”.</p>
<p>As you can see from NPCs, it can vary greatly as to what you are required to pay. FAFSA does not ask for qualified pension.401K funds or primary home equity values. They hit other assets at about 5.6% after a protection allowance, which means the $400K you have in the market, if not qualified retirement assets, would be result in about $20K, maybe less in EFC. Another $10-15K towards the EFC from your job earnings. You want to avoid withdrawing from the qualified plans because you not only get penalized tax wise, but those withdrawals count as income for FInancial aid purposes. </p>
<p>With PROFILE, it’s all up to the school. A few schools won;t count home equity, some will cap it at 1.2X income, some at double that, some have no cap. </p>
<p>So you have to look for the deals. Wash &Lee is offering a deal for those under $75K income. DOn’t know how assets are counted. Albright College in PA used to guarantee to meet FAFSA EFC up to Tuition, fees, room, board, which is a pretty good deal.</p>
<p>$70,000 is “low income”? Wow</p>
<p>^Interesting that some posters have made the assumption that the “spouse” is OP’s husband .</p>
<p>True…I assumed “husband” because more moms post on this board than dads. That said, hey, they could both be women or they both could be men.</p>
<p>400k in funds,</p>
<p>How much is that generating in income each year? </p>
<p>I think I remember reading that some CSS schools are looking at retirement assets, but I don’t remember which schools those are. </p>
<p>I think if I wasn’t satisfied with a $70k income and needed to dip into savings in order to live (which is not a good long term goal), I’d ditch the philosophy that the spouse has worked too hard to get certs, etc, for the chosen career to consider some other kind of employment. Many people have to “switch gears” after becoming experts in their fields when their particular jobs are becoming extinct.</p>