How much rental income was she getting? Couldn’t that have helped to pay for your schooling?
If you cannot afford this school (wait until you get your financial aid award but make sure everything was reported correctly) then you might have to attend a CUNY with federal and state grant if you qualify for them and then apply for PA program. You will take out your own grad loans for the PA master program.
The OP should be eligible for full TAP award ($5,165) if s/he is eligible for the full Pell Grant award. St. Johns also award about $1,250 to students who elect to live off campus. @futuredebtinc, does your mother still have a mortgage on that property (mortgage still in her name)?
Aside: When will St. Johns University transition to a Masters Physician Assistant Program? I know CUNY-City College and CUNY-York College PA programs are now graduate programs and by 2020, it will be mandatory that all PA programs are at a Master’s Degree level. Do you know if this transition will affect you in anyway in the next 1-4 years?
My mom doesn’t have a job, so the $14,000 income is from the rental. Since the house is now under my sister’s name, she would not sell it. My mother had breast cancer (staged one, she’s good now) and gave the house to my sister as her inheritance. No way would my sister sell her inheritance just to pay for my college funds.
My father passed away when I was little, and we used his life’s savings to buy the house we’re currently living in. My mother borrowed money from relatives and close friends and paid off the mortgage to the banks. I know that does not help to my situation, since it so rare to pay of a mortgage. However, we still owe a lot of money to friends and family.
Given my situation, would it be harder to gain more aid?
In addition, (off topic) but if I register a credit card under my name would this effect how schools/financial aid people view my situation? I.e. “he has a credit card, he must be rich…why are we providing for him?” Obviously, I’m going to use the card wisely to build a good credit score for the future.
Good luck getting a credit card as a HS graduate.
I’m not sure I understand the house situation. Are you saying your sister was given a $650,000 house for an inheritance, but you are getting NOTHING that could help you pay for college?
And does this now mean your mom had $0 income…because,the house belongs to your sister?
To be honest…this doesn’t make sense.
@sybbie719 could you clarify the TAP award for this student? Would he get $5000 in TAP, plus $5800 in Pell Grant plus $5500 in Direct loans? Plus his scholarship?
Getting a credit card as a HS graduate is not hard. Nor is it indicative of assets; it’s not going to affect your FA. Your school won’t know that you have a CC. You can apply for cards like the Discover Student or Sallie Mae Student ones (sometimes students with no credit are rejected – sometimes not), apply for one through your bank, or get a secured card (you put money down, and that becomes your line of credit) from your bank if nothing else works out.
I went with the second option; I had checkings/savings with a bank, couldn’t get approved for any third party cards because I had no credit, but my bank approved me for a (non secured) regular CC because they have leverage in that situation if you don’t pay up.
Side note: it should go without saying, but pay off your statement balance in full, every month. That’s how you establish a good score.
I wonder if your mom filed the required gift tax return.
It is if you’re under 21, especially since the credit act of 09. There are several restrictions on those under the age of 21.
Nobody I know has had difficulty, low income or otherwise. There are some very high interest cards out there that are practically thrown at students, banking on them to not pay on time.
“The act contains new protections for college students and young adults, including a requirement that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students.”
“Prescreened credit offers may not be sent to those under the age of 21 unless they have opted in with the credit reporting agencies to receive such offers… Card issuers and creditors may not offer a student at an institution of higher education any tangible item to get them to apply for a credit card if the offer is made on or near campus, or at an even sponsored by or related to the college or university. Colleges and universities will also be encouraged to limit on-campus marketing of credit cards, and offer credit card and debt education, and counseling sessions, as a regular part of new student orientations.”
Looks like the credit act of 2009 mostly limits the marketing of cards to students. If you’re going to them, you’re not gonna have any problem. Students are a disproportionate source of interest revenue (unfortunately)… not hard to get credit.
Look, I’m the child of a banker. It really has become more difficult. Perhaps there is a reason that no one you know has been denied (funds from parents/savings accounts, cosigners, etc). However, I know many people who were my age in college who were denied because of lack of income/funds. I also know how it played out at my mom’s bank… and the result was that most young people were denied.
If you do not have a cosigner, you must provide fairly stringent proof that you can pay off the credit card. Since you had an account with the issuing bank, your bank account must have been sufficient.
I am not saying it is impossible. I got several credit cards in college post-09 (though I did have one in high school just before the act passed) but it was because I worked full time and had decent income.
I have to agree with Courtney, credit cards are not hard to get. I work in consumer finance and it’s just not hard (should be, IMO, but it’s not). My kids could qualify, but I’m good with them just having debit cards with a Visa logo. There are cards offered by state chartered banks that might not fall under the Act. The applications are not checked that closely. Do you have a job? Yes (even though it is a low paying job just a few hours a week). Okay, you have the ability to repay the bill, Approved.
op is going to prompt a low income verification. They are going to want to know how he and mom survive everyday and the source of the 14k if mom does not work. He has a very convoluted situation so I am not going to weigh in on his situation. because there is more going on than he alluded to TAP has a calculator on the HESC website.
Getting a credit card is the least of this student’s worries. OP, there are legal and tax steps required to transfer a large asset like this rental you are talking about. If it hasn’t been done properly and early enough, it could really complicate your FA situation. It could also be easy to misrepresent something on your FA paperwork thst could get you in trouble later.
@inparent Would it have been better to simply add the daughter to the home ownership rather than gift it?
It is better if neither parent nor student has legal title to the property, and I assume if the mom still is on the mortgage that would raise questions as well.
@inparent I think the daughter is older and out of school. The house, OP, said was completely paid for through borrowing from family and friends. That needs to be paid back. That doesn’t make sense to me from a tax POV. I would have thought a mortgage would be better.
I agree with those who say that getting a credit card is difficult for a young person. S tried to get one after graduation. He was denied by both his bank and one of the big credit card issuers even though he is an authorized user on my card. He had to get a secured card and he has a full time job and no dings on his credit.
Here is my opinion, for what it’s worth.
This student doesn’t have enough money to pay for college. They don’t need a credit card of their own. Our kids got credit cards with student accounts back when they were just included by Bank of America and many others. That was 10 years ago or more.
But now…if I had a kid going to college, I would not encourage them to get a cc of their own…unless I knew the STUDENT was earning enough money to pay the bills. And really the only things they need cc for is plane tickets or emergency purchases. The kid we have in school has an account linked to the patent for these needs. Otherwise, she lives in a cash economy…period.
@gearmom, my reading is that they own house that they live in that does not have a bank mortgage (but they owe friends and family in it, possibly through formal loans or informal). And they separately have a rental property worth $650,000 (equity and mortgage situation unknown) that was gifted from mom to adult sibling, possibly in 2015.
I agree that a formal mortgage could be better if a school looks at house or rental property equity – although a family or friend mortgage can be set up formally.
With $14,000 in income…and now no income because the mom gave the rental property away…what lending agency would give this mom a mortgage?