We are talking about existing mortgages, not getting a new one.
Did the oarent ever have enough income to get a mortgage?
All that doesn’t really matter now. I still ask…why would the parent give a $650,000 “gift” to the sister…and leave nothing for this other sibling? Makes no sense.
@thumper1 For financial aid? They would have had her borrow against the property for this student. I’m not sure that hiding the asset the way it might have been done will work out well.
I wonder if I am correct…$19,800 scholarship plus $5800 Pell, plus $5000 or so in TAP, plus $5500 Direct loan…comes to about $34,000, right?
Until recently your mother owned 2 homes. Transferring title to the $650k second home to your sister will make it appear that you have no assets to draw on (borrow against) to pay for your education. However, since your mom doesn’t work, that will likely trigger an income verification.
I don’t understand how income on a $650k property can only be $14k/year unless all kinds of deductions are taken. Those will show up in the taxes, and schools have been known to ask for a couple of years of tax returns to get a clear, longterm picture of family finances. If her tax forms list deductions for real estate (taxes, rental related expenses, etc.), I would imagine that both the schools and the agencies that run TAP and PELL will wonder where that $650k property went. They won’t care that your mom still owes your family money for it or that the chances of paying off that money on a $14k/year income is remote, at best.
The most you can hope for is a $5k Pell grant, a ~$5k TAP grant, and the ~$5500 federal student loan, which still leaves you short. Worst case scenario is that the property transfer just before you began your college applications gives the appearance that your family is trying to hide assets, and neither schools nor government agencies look kindly on that. Either way, I’d make sure to apply to an in state safety where you’re sure you can get admitted, that you know you can afford, and that you’d be willing to attend.
What am I missing? If this student family income is REALLY $14,000 a year…and the also can do one of the following:
- File a 1040A or 1040 EZ tax form
OR
- Qualify for means tested benefit like SNAP or free/reduced lunch
OR
- Parent is a dislocated worker and total 2015 income is below $24,000
Then this family would have qualified for an auto $0 EFC…and I don’t think assets would count…at all.
Also…I do not think you can just “give” a house to someone. There has to be a deed transfer of some kind.
Is St John’s a FAFSA only school?
And how much would the cost be for the whole PA program? Usually there is undergrad tuition for 3-4 years and then graduate tuition for 2 years for the PA master part of the program.
The graduate tuition could well be $50,000 a year or more, so borrowing for undergrad as well might not be advisable.
Looks like St. John’s is FAFSA only.
http://www.paschoolfinder.com/item/st-johns-university/
look at the 2 yr PA master program tuition $72,900 a year!!!
Even if you lived at home that would be close to $150,000 in grad loans and then add to that over $20,000 from undergrad loans.
Why not just do your pre PA program at CUNY closest to you and then apply to PA master program, or if the CUNY incudes the master program then (like jamrock suggested), just do it there. It will be much cheaper I expect.
Not all the students that are entering PA program at ST John’s, go on to the third year, it says on the website that about 75 of 125 go on.
Looks like undergraduate tuition is about $38,000 a year. With a $19,000 scholarship, still $19,000 is needed.
OP said he does not have insurance, what about meals, commuting costs, books?
Pell and TAP are not going to cover all that.
If the OP does not have an advantage from attending St John’s as undergrad and can’t afford it, s/he needs to look at other more affordable options.
The [url=<a href=“https://www.ccny.cuny.edu/sophiedavis/physician-assistant-program%5DCUNY%5B/url”>https://www.ccny.cuny.edu/sophiedavis/physician-assistant-program]CUNY[/url] system has a PA program. I think the [url=<a href=“https://www.ccny.cuny.edu/sophiedavis/pa-program-tuition-and-fees%5Dcost%5B/url”>https://www.ccny.cuny.edu/sophiedavis/pa-program-tuition-and-fees]cost[/url] is ~$6k/year. That may be a good safety if OP can commute to their campus.
The OP says he doesn’t have health insurance now? My question…is that true? No state plan?
Also. It’s not an option to NOT have health insurance in college…and definitely not an option in a medical field.
Yes see post #8, in reply to intparent’s question OP said he doesn’t have insurance.
The above clues may help with the whys? It is quite common for individuals to dispose of significant assets in order to qualify for Medicaid (provide medical insurance, long term care for the elder, etc., etc.).
BTW, the house had no mortgage, so it is possible the home was technically sold to the daughter for $10.00. The funds to pay off the existing (low) mortgage was “borrowed” (possibly) to facilitate such a transfer. Of course, there are some financial aid benefits to such a disposal
Is there a “look back” on assets for Medicaid? There is for Medicare?
The 2-year PA Program at St. Johns is only a certificate program…no degree granted.
St. Johns is one of the few remaining direct entry Bachelors Degree PA Program, where a student enters the program after high school. The 2-year certificate program is for those students who have completed a BS and have all prerequisites for the program.
This is why I mentioned in a prior post that CUNY-CCNY and CUNY-York College are no longer a bachelor’s degree program and the entering class for Fall 2016 will have to have a bachelor’s degree to enter the program, spend about 2/2.5 years and graduate with a MS degree. So, the St. John’s PA Program is very enticing for a lot of students, since they can finish their PA after 4 years, while their peers are completing their degree in 6 - 6.5 years (4+2/2.5).
So the total PA program at St Johns is four years? I’ve heard of 5 year programs, and 6, but those have a master degree when finished. Don’t they need a master’s to be competitive?
At a net cost of almost $20,000 after scholarship for first two years and $150,000 for last two years, that’s close to $200,000 total. Even if OP could get maybe $10,000 in federal and state aid, that would only bring it down a little.
And more than half of the incoming class will not move on.
If the OP’s mom has Medicaid then the OP would, too. (Assuming OP is in high school.)
I think there is a lot this student doesn’t know about his family’s income and insurance. NY is a Medicaid expansion state and therefore he should have insurance at no cost to him or his family.