<p>I know this is going to sound dumb, but what is considered taxable income? AGI or income after deductions?
Also, we recieved a letter from Yale and the finacial information section said that "Parents or guardians earning under $65,000 annually pay nothing to send a child to Yale.Those with income between $65,000 andd $130,000 will pay between 1% and 10% of annual income."
Our AGI was 74,000 last year and my part time job ended in May (so I will be less 5,000). This puts us very close to the $65,000. My husband is working on his thesis and it may be benificial to take some time off. Is it worth it to lessen his income to get free tuition? It seems too easy.
Kristy</p>
<p>Yale utilizes FAFSA and CSS to determine need based aid. I would go to their website and read more about it. There is more to CSS than just income. My S applied last year, was deferred, then denied. I believe with the CSS your assets are included so that’s why it can be different. Yale has a lot of info on their website and you can do a calculation (they direct you to a website). They used to have a calculator on their website but couldn’t find it. </p>
<p>I believe getting into Yale is harder than paying for it LOL. My S is going to UPenn and our share is about $8K and we consider that an investment well made. My S had some scholarships to cover his summer contribution portion and has a $3K in work study so he will have no loans. We could of course have him take out a loan for $5500 (unsub) to help cover our share. Good luck!</p>
<p>It would seem a poor bet to deliberately reduce income in advance considering less that 10% of applicants are admitted to Yale. Yale might also detect you have done that and not be happy about it. Can you house, feed, clothe, provide medical insurance etc. for your family on the lower income? Given that you are at the lower end of the $65000 - 130000 range, your contribution should also be at the lower end of the 1-10% range should your child be lucky enough to be admitted. It would seem pretty much of a wash to wait until your child is admitted and then reduce your income by contributing a small part of it to Yale.</p>