Our oldest is in eighth grade (not too early to think about college, right?). Just to see what our expected costs would be, I signed into Davidson College’s Net Price Calculator. I put in our income of $130K and all the other information was as accurate as I could make it, considering I didn’t have my tax forms close at hand. Our expected contribution came out to be $20K. This for a school that’s over $60K/year. Did I do something wrong, or does this sound right? We’re not rich (our $550K house has about $370K left on the mortgage) and my wife and I are over 50.
That’s a plausible number. Were you expecting it to be more, or less?
I was expecting it to be much more. I wouldn’t expect much need-based aid at all. Is this unique to Davidson, or are many small private colleges like this?
There are a number of selective, well-endowed colleges (large and small) that provide significant need-based aid, even to families with incomes in the low six figure range. Non-retirement assets will also be a factor.
I was expecting it to be much more. I wouldn’t expect much need-based aid at all. Is this unique to Davidson, or are many small private colleges like this?
Thanks. We don’t have much in the way of non-retirement assets.
I would run a few more NPC’s to get a better feel. Given your level of income, it would seem your more like the $35,000 EFC level. $20K seems a bit too good to be true.
It’s possible…but don’t count on that being the case in four years when your kid is actually GOING to college. The NPCs do change.
I just ran the NPC for Amherst (they use the College Board interface). Estimated net price: $25K.
Not every place is that generous. Run the NPCs for a couple of your home-state public Us, and a couple of out of state publics such as the U of CA system or U of IL at Urbana-Champaign that have reputations for being expensive even for in-state candidates.
You said that your 8th grader is your oldest-- how many kids do you have? The system does take into account family size.
Also, as a parent, keep in mind that only a small number of colleges promise to meet full need. It is great that you are thinking about things early and looking at excellent schools like Amherst and Davidson - but your 8th grader might not do as well as you hope in high school. So part of early planning might be to beef up college savings now, so that you will be prepared to pay full cost at your in-state public if your son doesn’t quite get the grades and test scores to win admission to an elite private LAC – or if your son decides he would prefer to attend a college that is not as generous with need-based aid.
I know this is an old thread, but my understanding is that parent age also is a factor (older parents are considered less able to continue working, I assume).
There is a slightly higher asset protection allowance for older parents. But that’s really it.
Even older parents will have their kid need based aid based primarily on their income…so really…older parents don’t get a big break in costs.