<p>My husband switched careers 3 years ago to become a teacher after being very successful in the corporate world. We currently make less than $100k per year from all income sources, but have quite a bit in investments: the interest/dividend income generated enables us to meet the gap between his much lower salary and our expenses, which include 2 private school tuitions.</p>
<p>Do we have any hope of getting financial aid? Any EFC calculator I've done says no, but will a college (or the Federal calculation) take into account our special circumstances?</p>
<p>I know some folks will think this is no problem at all, but with a drastically lowered income in the 15 years or so we have left before retirement, we have no hope of adding to our savings and therefore need to preserve our capital. We have lived a frugal life, in fact have been super-savers and currently have no debt, including a mortgage - will that also work against us?</p>
<p>I recall reading that some private universities would require families making under $120k per year to pay no more than 10% of their income toward tuition. But, for instance, on Vanderbilt's website, there's the vague caveat that those families must have "average" assets.</p>
<p>So...are we looking at no possibility of financial aid? Any advice appreciated. I've posed this question to 2 different financial aid offices and have rec'd vague, noncommittal answers. Anyone with similar experience?</p>
<p>Yes, most have those guidelines for those with “average assets”…exactly because of people in your circumstances. They don’t want to be awarding money to those with large assets.</p>
<p>our special circumstances?</p>
<p>I don’t think they’ll think you have “special circumstances.” Sounds like a choice was made. It’s not as if salary decreased because the breadwinner got cancer and can’t work. JMO, but I don’t think colleges will ignore the big assets just because the breadwinner “down graded” himself employment-wise by choice. </p>
<p>I think that colleges will look at your assets just as they do for those who “retire young” with lots of assets. The assets are there. Retiring young was a choice. </p>
<p>From what we’ve seen on this forum in the few similar circumstances that have been posted, you may not get a dime of aid…or maybe a few thousand (which may not be enough).</p>
<p>How much aid are you expecting/wanting? Vandy is over $60k now. How much do you want to actually pay each year?</p>
<p>but with a drastically lowered income in the 15 years or so we have left before retirement, we have no hope of adding to our savings</p>
<p>that’s just it…colleges won’t necessarily think that there is “no hope”. No hope would be circumstances that are very different from yours. No hope would be the family who doesn’t have a spouse capable of earning lots of money or is very ill. You actually do have hope. Your H could return to the corporate world and the large salary. He may not want to, but to say that your family has “no hope” isn’t quite true.</p>
<p>Not only that, with some of that money, one or both of you could invest some of it in another profitable venture…so more hope.</p>
<p>I’m not seeing special circumstances. For FAFSA, the no-debt won’t work against you (and it doesn’t work for you if you have high debt). It looks mostly at income. I think FAFSA considers a percentage of investments available for college. We also had that situation. The way to protect that is to have it in qualified retirement accounts, but then not available for year to year. </p>
<p>The fact that you afford 2 private school tuitions makes me question why you would be eligible to get FA. FA is truly meant to help you go to college, not go to the more expensive school of choice. After all, not many people can afford full freight at privates that now are in the 45-56k range. I know private school varies wildly - around here 10-15k a year. But at the high end, frankly, that more than covers tuition at local univ. I know you can’t say that in every state.</p>
<p>Private schools that use the Profile take into account more about assets, some even include cars. The 10% max figure you quoted I’ve seen at Harvard, for instance, but no other private school we looked at, and Ds applied to some very selective school.</p>
<p>Remember also, even if you get a low EFC, there is no guarantee that a given school will make up the difference.</p>
<p>look for schools that have merit aid that is not tied to EFC or your ability to pay.</p>
<p>My boss’s son is starting at University of Maryland and they are full pay people, but her son is smart and runs track and was able to get merit aid despite the parents full pay ability.</p>
<p>I agree that you don’t have special circumstances. It really depends on the school: what they consider average assets and how they deal with amount over that. Some of the more generous schools could give you Institutional aid, it’s best to run the NPCs and see what they come up with.</p>
<p>Thanks for your thoughtful replies to my question. Obviously, I’m new to all this and trying to plan for future, so all help is greatly appreciated.</p>
<p>I do think our son will qualify for some merit aid based on test scores & grades, so that’s a plus.</p>
<p>When I said “no hope”, I just meant there’s no hope for adding to our savings with our current income and with my husband pursuing his dream of giving back through teaching underprivileged kids, which I fully support. My work as a youth minister doesn’t pay well, either, but I’m not willing to give it up.</p>
<p>Obviously we are very blessed and our children will be able to go to college; they’ll live at home and go to a community college, if nothing else. I certainly didn’t mean to portray our family as wanting to go to the most exclusive private school around-Vanderbilt is just one of about 10 schools my son is interested in and happens to be the only needs-blind one on that list that also mentioned the average assets wording on their website.</p>
<p>I was just curious to know if it was realistic to expect any financial aid in our situation, but hearing your replies, I’m guessing not. Thanks for your honest opinions.</p>
<p>I do think our son will qualify for some merit aid based on test scores & grades, so that’s a plus.</p>
<p>Yes, if your son has the scores to be competitive for Vandy, then he should include some schools that you know FOR SURE that he’ll get a lot of merit.</p>
<p>Don’t rely on merit from schools that “might” give him merit. Top schools that give merit use an unpredictable method for their awards. They may award a URM or they may award someone who comes from a state that they have few students or they may award a student who has perfect stats. </p>
<p>Since you have more than one child to put thru college, it would be wise for you to “do the math” and figure out how much you CAN contribute each year for each child. Then tell your children that number. </p>
<p>If you have 8 years of college ahead of you, and you’re willing to spend $20k per year ($160k), then let them know. Obviously, that amount is just an example. Your own number could be higher or lower. </p>
<p>Tell your kids that if a Vandy school accepts them and it costs more than that, then they can’t go there. </p>
<p>Tell them that they must also include a couple of schools on their lists that will give them enough ASSURED merit so that the remaining costs meets that decided budgeted amount that you’ll pay.</p>
<p>It doesn’t sound like your kids would have to rely on a CC to be their financial safety. It sounds like they could have other financial safety options. Look over the thread that lists Automatic Merit scholarships. Those awards are assured for stats. </p>
<p>BTW…Vandy isn’t the only school that mentions average assets…I’ve seen that a lot. Harvard has that as well (or at least did a couple of years ago). I know a parent who had an income similar to yours, but then got a nice inheritance and suddenly Harvard took away a bunch of aid for their child’s returning years. I don’t know what these schools consider to be “average assets”…maybe an amount equal to a year’s income? Who knows!</p>
<p>Again, run the NPCs. The highly selective, most generous colleges (HYPS and perhaps others) may give you need based FA (one of them did for D1 and we have a similar financial situation).</p>
<p>I’m sorry…but what are your special circumstances? You have investment income and earned income that together are apparently substantial. Are you saying you think the colleges should ignore your investment income? You are paying private high school tuition. Do you think the schools should ignore this expense? Do you think the schools,should give you more aid because your income is now lower than it used to be?</p>
<p>Nothing you posted indicates any kind of special circumstance. You are very fortunate to have both earned income and investment income that make your total family income what it is.</p>
<p>When your child graduates from private high school, those funds can be diverted to college costs. In addition, your child can take out a $5500 Direct Loan for freshman year. Add to that summer earnings, and a job during the school year, and an instate public university is likely affordable.</p>
<p>OR look for colleges where your student would receive guaranteed merit aid…then add that diverted HS tuition money, and Direct loan money, and again you will likely find affordable options.</p>
<p>I haven’t read all the replies but wanted to add. The schools that award the best financial aid tend to use the profile … and look at assets as well as income. These schools tend to also have asset protection allowances … each school has their own rules … however some/all of your home equity may be excluded from the asset calculation … money in retirement accounts (such as 401ks and IRAs) have some protection … and money in “regular” assets also have some protection. So depending on your family’s level of assets the asset hit might not eliminate all financial aid. However, while you have not provided a lot details about your families finances given the pieces of info you have provided I would be surprised that if your kids are eligible for financial aid it won’t be a lot. As others have suggestion run the calculators on a bunch of schools web sites to get grounded on the level of aid for which your family is eligible.</p>
<p>If each kid’s private school tuition costs $35,000 per year, then continuing that contribution through college should keep a number of colleges within reach (in-state publics, the full tuition/ride scholarship schools in the sticky threads, perhaps some lower list price schools), even without need-based financial aid.</p>
<p>You can always run the net price calculators at various colleges to get financial aid estimates.</p>
<p>I doubt in this case, the family is spending $70k per year on tuition. That wouldn’t seem to fit with the family’s current income of less than $100k from two parents’ income and investment income. </p>
<p>More likely, the family is spending $30k or less total for the two kids’ tuition.</p>
<p>There are really only a handful of colleges who only charge 10% of income for families who earn $120k or less. And they are the MOST competitive for admissions as well. Plus it sounds like your unearned income puts you well above that amount.</p>
<p>At most other colleges, your family contribution on an income of $120,000 would be in the $30,000 to $40,000 a year range…and with high assets, the higher amount would be more likely. Actually depending on your assets, your contribution could exceed that amount.</p>
<p>Re: federally funded aid…your child would qualify for a Direct Loan of $5500 as a freshman. Your income of $100,000 would likely put you out of range for any other federally funded need based aid.</p>
<p>P.S.sunflower…I think you are confusing two terms.</p>
<p>Need Blind- this means that the,admissions office does NOT consider your financial need when considering your application for admission. It has NOTHING to do with the awarding of financial aid. MOST colleges are need blind.</p>
<p>Meets full need- this means that the college guarantees to meet full need for ALL accepted students as the school calculates that need to be. This pertains to financial aid.</p>
<p>I think you mean that Vandy meets full need. I believe Vandy is need blind as well. </p>
<p>My guess is that MOST of the schools (if not all) on your son’s list are need blind for admissions…but maybe Vandy is the only one that meets full need for all accepted students.</p>
<p>How long until they start school? Definitely pursue merit aid, look for schools where your child’s stats are in top 25%, privates especially. As a school teacher, I understand your reduced cash flow, but I’ve dealt with that for 34 years. Budget some priorities for your assets, and keep in mind retirement assets are not usually considered, except in the year you take them out. You can expect nothing from the feds than loans, so look carefully at the NPC’s. Can you sustain the private school expense through college?</p>
<p>We are in a similar situation - lower income, but high assets. As mentioned in a previous post, you can look at Stanfords website where they spell out what they consider ‘typical’ assets and that might be a guide for you to use. We are not expecting any need-based aid.</p>
<p>between the 'paid off home" and the investment income, this family’s assets probably well exceed the amount that Stanford and others consider “average assets”</p>
<p>Actually, when you think about it, with the paid off home, I don’t know if the CSs profile formula would be harsher? I don’t just mean asset wise, but the fact that the family doen’t have rent or mortgage to pay? How does that work with CSS?</p>