<p>Daughter just now applying for schools. Did not attend much college myself and when wife went we paid for everything. This question would be for those of you who have filled out the aid forms and have received replys. We haven't started filling them out and don't want to spend countless hours doing so if there is no chance of receiving aid. Ballpark financial situation is as follows.</p>
<p>W2 income 65K
Family of 5
Construction business made 100-400K in 2004-2008 but very little in 2009 and possibly won't cover expenses in 2010
Construction company assests 250K
Cash in bank 30K
Stocks, bonds, mutuals 100K
IRA's 75K
Home equity 250K
Rental property equity 500K
Receivable 225K principle over the next 12 yrs at 6 %
Other assests 100K</p>
<p>So as you can see our assests are much higher than average but income from W-2 alone would probably give us ability to get aid but not having any idea of how the system works thought many of you might be able to advise if we should fill out the papers. Thanks</p>
<p>You would be much better off at a FAFSA only school (mostly public Us), but those schools do not tend to meet need. A CSS Profile school (used by many private schools) will seriously consider the assets as available to be borrowed against. Other more knowledgeable people can add.</p>
<p>I don’t believe a FAFSA only school will help here. They will look at the $500K rental property and $100K in the market alone and come up with an EFC higher than the COA at any state school and too high for need based aid at FAFSA privates which don’t meet need anyway.</p>
<p>You might get a small amount from the most generous privates if they don’t consider primary home equity and depending on how they look at your business, but even at Harvard, it seems unlikely.</p>
<p>The bottom line is that most schools are going to see a million dollars plus in assets, which they will want 5.6% of each year. And keep in mind the first aid will be a student loan and work study at most schools. I don’t see getting a dime in grants here.</p>
<p>*
Rental property equity 500K
Cash in bank 30K
Stocks, bonds, mutuals 100K
Rental property equity 500K
Receivable 225K principle over the next 12 yrs at 6 %
Other assets 100K</p>
<p>*</p>
<p>Those are going to hurt at both FAFSA and CSS schools.</p>
<p>And what about rental income?</p>
<p>What are your child’s stats?</p>
<p>What schools is he/she applying to?</p>
<p>What state are you in?</p>
<p>At most schools, you’ll only get a student loan.</p>
<p>If your child’s stats are high enough, he/she could get merit scholarships at the schools that give them (not all do).</p>
<p>Many schools are requiring financial aid applications to be considered for small merit scholarships. If your daughter applies to schools where she is in the top 20% of applicants, I have heard that schools will either meet any need, or offer merit scholarships. Some state schools also give merit scholarships based on tests and/or rank in class. I think schools need the FAFSA, so they can meet the federal requirements - they can’t give federal aid to students who don’t need it, but they can give merit scholarships. Also, I think some loan programs require a FAFSA regardless of whether you qualify for aid.</p>
<p>Did I miss the rental INCOME on the list? This will also be included but as income.</p>
<p>The asset of rental equity alone at 5.6% would be $28,000. </p>
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<p>What does this mean? If you are saying you will receive $225K over the next 12 years, that would be $18750 per year. Could this money be used for college costs? Where is this invested…that is a GREAT rate of return :)</p>
<p>This family will not likely qualify for much (if any) aid. CSS schools will expect a lot and FAFSA schools will as well. </p>
<p>Do check to see if your child’s schools require you to apply for FA in order to be considered for merit scholarships. MOST schools do NOT require FA applications for merit consideration, but SOME do.</p>
<p>I’m with Thumper – where is the rental income? It’s supposed to be reported on Schedule E. Maybe OP has rental income but expenses render it a net loss…ata which point it would actually reduce AGI.</p>
<p>On the $225K loan – did he make a loan to the business? Or a private loan? That’s the only way I can see that kind of return.</p>
<p>Financial aid is not based on income from the W2 alone. It is based on all your income, including any rental income.</p>
<p>A moot point though. With over $730k in personal assets (not including the IRA, business assets and receivable thingy) it is extremely unlikely you will be eligible for need based financial aid anywhere. At 5.6% those assets alone will make your FAFSA EFC over 40,000.</p>
<p>If you cant strike luck with FAFSA my suggestion would be applying for a private loan.You can find out how to find student loans & compare the best rates, thats the old fashion way. Getting your priority straight as far as what you would like to spend could be an elementry guess when you compare the lenders.</p>
<p>Will try to answer all with this one post. Rental income- On paper all rentals show loses due to mortgages, ins, and taxes. The 225K receiveable is from a business sale to partner in which I financed. Daughter stats- 3.95 unwieghted 4.56 weighted 1980 SAT and 31 ACT. Lastly I realized I should of just worded my orginal post different by saying we had considerable assests and no need to of mentioned all of them. Thanks again for all answers. Wife and I know we have a huge learning curve ahead of us in regards to this entire process</p>