<p>I ran the EFC calculator and it estimated my EFC to be 48,000$ My parents, for 2011, have a salary of slightly less than 49,000 (if this makes any difference, they made around 60,000 in 2010 However, we own a second home that's calculated to be worth 770,000$ though we've barely made a dent in paying off the mortgage. Did I do something wrong or are my parents expected to contribute their ENTIRE salary? </p>
<p>My parents were adamant that I apply to some ivies but that was because they thought our assets would not come into play that much and because of most ivies met 100% need and some does not expect families to contribute if their salary is <60,000$ . They had been ready to tighten their belts and pay about 30,000 towards college per yr but they were optimistic that it would be less since they knew others who made a lot more and paid less. </p>
<p>When you put the value of assets on the FAFSA you put the net value. So it that home is valued at $770k but you owe $700k, you would only put $70k as the asset value.</p>
<p>For those Ivies you will be asked to complete the Profile or in the case do Princeton their own form. On those you will be asked to list the current market value of your second home. I haven’t completed a profile in a long while, so I’m not sure where you indicate your actual equity in the home. </p>
<p>Having a send home…and the payments for that second home are considered a choice.</p>
<p>I’m no financial expert but if the parents were in a position to offer 30,000 per year then there must be some other savings or investments in play here that effected the EFC. More than just the second home…</p>
<p>Wish I knew how to buy and pay for a second home(even a small one) on a salary in that range!</p>
<p>However, we own a second home that’s calculated to be worth 770,000$ though we’ve barely made a dent in paying off the mortgage.</p>
<p>The property may now be worth 770k, but how much is owed? Saying that they’ve barely have made a dent in the mortgage doesn’t say much…they may have only borrowed $400k. </p>
<p>* salary of slightly less than 49,000 *</p>
<p>I, too, thought it was odd that they’re claiming a modest income, but saying that they can pay $30k per year for college. They can hardly live on $19k after paying income taxes on a $50k income.</p>
<p>Is the current home paid off?</p>
<p>Are your parents self-employed? Do they own a business?</p>
<p>Do they have other savings? unprotected retirement accts? Are they making deposits into retirement accts?</p>
<p>Do they rent out that second home? If so, they have to include that income.</p>
<p>I, too, thought it was odd that they’re claiming a modest income, but saying that they can pay $30k per year for college. They can hardly live on $19k after paying income taxes on a $50k income.</p>
<p>& how the heck would they manage payments on a 2nd home?</p>