No parent savings and average AGI, no out of state?

Paying for College
1

<p>Family AGI $75K<br>
Only child
No college savings
Total savings (checking, stocks) = $6,000
Very small retirement accounts
Home equity = possibly $125-150K
No financial ability for parents to take out more loans</p>

<p>Is it true that I should give up on the idea of going out of state? I have above-average scholarship opportunities in-state (slightly more than tuition paid), so would only want to go out of state if the college was worth the travel (Boston College and Northwestern, just two examples).</p>

<p>A couple people have told me to give up on the idea of out-of-state schools because the EFC will be too high. I filled out the FinAid.org EFC calculator, and if I did it correctly, it estimates an EFC of over $11K per year. </p>

<p>If my parents can't contribute much, and since I can't make up the rest with work, should I give up looking out of state at good schools? Do schools in the league of Boston College and Northwestern expect $11K EFC for the AGI above? </p>

<p>I'd like to have some idea before continuing to search for out-of-state colleges, only to be disappointed later. Thanks.</p>

2

<p>I don’t know if the colleges would give any merit aid like my in-state schools. GPA 3.8 UW, 4.3 UW, 1200 CR and Math SAT, top 10th percentile in school, National Honor Society and quality ECs. An English professor at college where I’m taking English 101 as a HS senior told me my essay was remarkably good; she literally graded it at 98%, with 2% off only for a couple grammatical errors in punctuation.</p>

3

<p>ecoaz, honestly all you can do is apply and see. I don’t think you’ll be getting merit aid at Boston College or Northwestern, but the need-based aid might be decent if you can get accepted. It’s really hard to predict what someone’s chances are and what their aid might look like. If you’re really committed to at least trying, then apply and see. It’s the only way to find out. Have those financial and academic safeties on your list, and give it your best shot.</p>

4

<p>Your EFC will not change based on the school, only based on changes in your family’s financial situation. Most colleges will expect that you’re going to meet it through savings/loans/jobs or some other means. I don’t know what Profile would come up with for EFC, you might be able to estimate that as well and see if you should stick with FAFSA-only schools. If your state is offering alot in scholarship money, it might be tough to replace elsewhere. But that doesn’t mean it’s impossible! I’d say apply to a variety of schools you like, including your in-state “financial safeties” and compare the offers you get. It may mean doing 8-10 apps but will hopefully yield a school that you really like and can afford to attend.</p>

<p>Since alot of colleges “gap”, be sure to look at the schools that guarantee 100% need met (yes, some of that will be through loans) and schools with a high average percentage (over 90%) of need met. See how much of their typical need met is through scholarships/grants. Look at lesser known schools - the “best values” lists contain some hidden gems -which have the program(s) you’re interested in and where your stats put you in the highest percentile. You can find alot of this info on collegeboard.com. My D’s stats are similar and we’ve seen quite a few colleges with decent merit scholarships at this level. You could also retake the SAT in November and see if you can score a bit higher on CR+math to reach the next category in merit aid!</p>

<p>If you’re concerned about travel costs, check out airfare based on this year’s school calendar at a site like Expedia - it’ll give you an idea of what to expect, and if you and the potential school are both near major airports, it may not be as bad as you think.</p>

<p>Finally, address the financial issues at home! I’m not judging them, but two working people with a $75K AGI and one kid who is employable should be able to find some means to start saving NOW! It may take some lifestyle modifications, but we all spend money on things we don’t need - and you need an education! Encourage one or both of them to read up on financial aid so they’ll have a better idea of what’s available and can help you. I know this is a busy time for you but you should be thinking about getting a job this year - maybe Christmastime or a bit later - and saving as much as you can. It will add up quickly and you’ll thank yourself next year! If your parents will at least match your savings the $11K will look alot more manageable! Plus, work experience benefits students in a whole host of non-financial ways. And don’t discount local scholarships - check with your guidance or career office often and apply for as many as possible! Outside scholarships will often be counted toward meeting your EFC, but check with your colleges to make sure! Good luck!</p>

5

<p>You stated that your instate scholarship opportunities would come to slightly over full tuition. Assuming you plan on living on campus, your out of pocket costs would most likely still come to 11K or 12K with fees, room and board, books etc. </p>

<p>Your stats are almost identical to my sons, and your parent’s income and assets are also very similar. We had less flexibility in finding schools that may provide merit because of my son’s major, but as sk8mom stated, there are schools out there that will provide merit for your stats (although probably not BC or Northeastern)</p>

<p>sk8mom also stated that you should try to stick with FASFA only schools. The reason for this is that the FASFA does not take home equity into account. The profile school that we applied to met 94% of need. Our income and home equity were about the same as yours, and our EFC at that school is 20K. For profile schools it is good to assume about 5% of home equity will be added. Plus, part of his financial aid package included work study and loans, so technically our cost would have been more like 25K. </p>

<p>Fortunately, my son got 8K in outside scholarships and the school applied those to self-help(loans and work study) and his gap, leaving us with a cost of about 17K. This number was so close to the cost of instate (after small merit) that we had to go for it. Tough- yes, but my son earned over 5K so far this year (worked 18 hours a week in HS plus summer earnings), we cut back on some things, and we do have to borrow a bit from home equity.</p>

<p>So to put things in perspective,from a Financial aid point of view an EFC of 11K should be considered a “starting point” for your out of pocket costs, and it is highly unlikely that schools will provide financial aid beyond that number (except some of the tip top schools where your stats would not get you in) </p>

<p>From a merit aid point of view you should look for private schools where your stats fall at least in the top 25th percentile (or higher), and look at their requirements for merit. Plus, there have also been threads about going to school in an other geographic location where the school may provide additional money because they want to diversify. You may find that the merit money will make the cost of going there similar to your instate. </p>

<p>REMEMBER, Most schools will not stack financial aid and merit, so do not expect a merit scholarship of 11K to cover your EFC. (unless your merit alone is higher than your EFC)</p>

6

<p>It’s amazing to me how kind everyone is on this CC forum, and I hope I can “pay it forward” to you one day soon! I truly appreciate all your helpful suggestions above. </p>

<p>As for family savings, the $75K AGI was last year and this year may not be as high. My dad started his own business a few years ago and was doing progressively better each year with a stellar reputation, but some business opportunities have slowed down recently with the strained economy (people cutting back), and I know he’s working very hard to secure additional business and is a very good businessman and hard worker.</p>

<p>I don’t want you to think my parents are poor savers. My mom has a serious chronic health problem, prescription and medical costs (even with co-pays) add up, and she has been completely unable to work for several years. I work part-time and also help my mom at home because my dad is concentrating on business. I know they’ve also been hard hit by declines on Wall Street, but I’m not involved in those details. I work part-time and return to my parents the cost of car insurance, pay for my own personal expenses, and set aside extra when I can.</p>

<p>Thanks again everyone! Thanks for helping me.</p>

7

<p>P.S. I forgot to mention that even though my mom is ill, she still tries to help me with college and financial aid info when she’s able and has been a great support. My dad is also very helpful whenever I ask him.</p>

8

<p>depending on how much you made in 2008, your income may affect your EFC also. I think anything the student earns in 2008 over about 4K, 50% will be added to EFC.</p>

<p>So if you earned 6K, your EFC will increase by 1K</p>

9

<br>

<br>

<p>This is true of you EFC per FAFSA. It won’t change based on the school. BUT the two private schools you listed (Northwestern and BC) also use the Profile. The family contribution (the Profile doesn’t compute an EFC…but the colleges do something to figure out what your family can contribute) is determined by each college for institutional monies. Schools use the information on the Profile in varying ways. One example is home equity. Some schools don’t consider it at all, others have a cap on the amount that is considered. Others consider it all. There have been reports here of schools that use the Profile (and meet full need no less) where the financial aid awards varied by many thousands of dollars from school to school. The schools received the same information. </p>

<p>If you know what the financial limitations are for your family, and you are able to live with them even if it means you can’t attend a school in the end…apply. The worst thing that would happen is that you would not receive sufficient aid to attend. </p>

<p>Have a discussion with your parents regarding just how much they are going to contribute each year to your schooling. And make sure you have a “financial safety” just in case the finances don’t work out elsewhere (it sounds like your state school is that).</p>

10

<p>Look for schools that offer non-need merit aid,
school that meet 100%need, understanding that the $11,000EFC will be parents responsibilty
Also OOS schools that offer good merit aid, such as University of Delaware, offered D great merit aid which made it better than in-state tuition.
Parents also can take out the federal plus loans to cover their portion of EFC.</p>

11

<p>Like everyone else, you have to be realistic and apply to a financial safety that you like that meets your needs, maybe even more than one. In most cases that will be your in-state public. Generally, we found that we were expected to pay about $10,000 a year more than our EFC. </p>

<p>The bottom line is that it’s pretty much impossible to anticipate what you’ll get from any particular school. I had pored over all the financial stats on several web sites and did all the calculations. Even with that, my daughter’s results surprised me. One of the schools that looked the least generous on paper ended up giving her the most scholarship money. Cast a wide net and you’ll do fine!</p>

12

<p>Based on the info you provided about the possibility of lower income (and in today’s market it may go lower next year???) and the added medical expenses from your mother’s illness, you should become familiar with professional judgement:</p>

<p>“Professional Judgment refers to the authority of a school’s financial aid administrator to make adjustments to the data elements on the FAFSA”</p>

<p>Follow this link to read more. Make sure you click on the links at the bottom of the page to read more.</p>

<p>[FinAid</a> | FinAid for Educators and FAAs | Professional Judgment](<a href=“http://www.finaid.org/educators/pj/]FinAid”>Professional Judgement - Finaid)</p>

<p>With professional judgement the school is able to change the data on your FASFA to reflect any special circumstances, resulting in a new SAR and EFC. However, from what I’ve read on CC not all schools are willing to do this, and the ones that do will require documentation. I’ve also heard that visiting the school with this information is more effective than just filling out an appeal and mailing it (and I think one of your parents should be the one talking to the FA officer as they will be better prepared to discuss actual finances/expenses.</p>

<p>Like everyone is saying, cast a wide net and look for schools that meet a high percentage of need and/or offer merit money to someone with your stats.</p>

13

<p>You can also look at out of states that do not have tuition differences. Some colleges and universities charge the same rate regardless of your residence status.</p>

14

<p>Thanks again, everyone. I love all the replies!</p>

15

<p>P.S. After further reading tonight, I came up with a few other ideas, but don’t know if they’re a real possibility.</p>

<p>I’m worried there will be a gap between COA and our ability to pay the remainder. </p>

<p>Since this will be my freshman year, IF my FAFSA comes back showing no need, can I still take out the full $5,500 as UNsubsidized? </p>

<p>Can my parents apply for Parent PLUS loans and defer payments in whole or in part?</p>

16

<p>no, you only get an Unsubsidized loan if you have ‘need’ if your EFC > COA then you have no need.</p>

<p>I doubt that will be the case based on an AGI of 75 K</p>

<p>FWIW, the max part of the subsidized is 3500 and the other 2K would be Unsubsidized. that applies to those will need as well. Yes, your parents can apply for PLUS to meet the EFC, but that accrues interest from the beginning (not sure if they changed the rules about deferring payments, but interest definitely accrues from the time the loan is disbursed)</p>

17

<p>Just one last thing that I though of. If you are a senior this year, you may want to get moving on finding/selecting and applying to schools where you would be a contender for merit money. Some (not all) have earlier deadlines for consideration for scholarships. </p>

<p>I’m sure people on CC will be very helpful in making recommendations. What part of the country are you interested in? WHat size school?? urban/rural/suburban?? Any idea for major?? </p>

<p>Also, check with your father to get an estimate of what he expects this year’s income to be and rerun the numbers on the calculator. </p>

<p>Good Luck</p>

18

<p>Thanks for your replies. However, I’m still left with the following question that I can’t seem to resolve regarding UNsubsidized loans. Excerpt from my post above:</p>

<p>“Since this will be my freshman year, IF my FAFSA comes back showing no need, can I still take out the full $5,500 as UNsubsidized?”</p>

<p>In other words, can a “no need” family take out the FULL $5,500 as UNsubsidized? </p>

<p>We’re willing to take the entire $5,500 out as UNsubsidized if it comes back as no need, and this is what remains unclear to me. </p>

<p>Does anyone know this? Thanks again!</p>

19

<p>Students without “need” CAN take out unsubsidized loans..I’m sure sue misread your posting. Total aid (need and non-need) cannot exceed total cost of attendance, though. At some schools, unsubsidized loans can even be used to replace the EFC. I have had MANY students with an EFC of 99,999 received unsubsidized loans, so I know it is possible.</p>

20

<p>Sorry about that, that’s what I get for posting at 5:30 am</p>