<p>My parents make about $55,000/yr. I have two siblings who are both working, but who are probably still paying off their debts. The problem is that my parents, despite being blue-collar immigrant workers, have managed to purchase three houses (one twelve years ago, another five years ago, and the last one two years ago). Most of the money that comes in (including rental payments from tenants) are locked up in mortgage payments and land taxes (the third house is $10,000 /yr alone). </p>
<p>I already pay for all my own clothes, books, and lunch, and I really don't see any aid coming from my parents.</p>
<p>I am a CA resident and am applying to UC schools, but 20,000 students is just too much for me. Plus, their tuition is continuing to increase. What are my financial aid prospects for top LACs (Haverford, Vassar, Oberlin, Wesleyan) and Ivies (Cornell, Dartmouth, Brown)? If anyone has had a similar situation when they were applying to college, please share! Thank you, and happy Thanksgiving!</p>
<p>Well, with an income of $55,000, you’d actually be in pretty good shape a the schools you’re applying to. But, your assets are going to kill you. Why don’t you try running fafsa4caster or another useful EFC calculator (I prefer CollegeBoard) to find out what your EFC looks like? Once you have that number, you can better determine what your prospects will be.</p>
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<p>The ones purchased 5 and 2 years ago almost certainly have zero or negative equity (equity is value minus mortgage), given the implosion of the RE market in the last two years (especially in CA). The one from 12 years ago may have some equity, or may not.</p>
<p>You may take a hit from the cash flow of the rentals, but it is hard to predict what it will be. PROFILE schools seem to disallow a lot of the expenses (especially depreciation) which increases the apparent income from them. I think FAFSA pretty much just takes what comes off Sched E (where you report rentals on your taxes).</p>
<p>If as you say mortgage, taxes, and insurance are chewing up most of the income, I don’t think these rentals will really hurt you too badly.</p>