recipe for FA disaster??

<p>Has anyone made a significant change while applying for FA?</p>

<p>Here is the basic scenario. We are applying for FA for two children. My kids essentially have 3 parents with income. We would still qualify for substantial FA if accepted. My ex husband lives in an apartment as do I and my current fiance. (Different apartments!!!) My fiance who is in our household so seen really as a stepfather has investments that of course we reported on PFS. </p>

<p>We have been casually looking at buying a fixer house for the last year. This week we finally found one that is such a perfect scenario for us, we want to go for it. In order to have a down payment we have to liquidate some stocks. </p>

<p>Here is the tricky part, we may not get the house. It is really cheap in a high demand area, but we have a great chance. If we liquidate stocks (about 40,000) it is capital gains so our income just jumped considerably. And if we dont get the house its going to sit in the bank until we can reinvest it. Its really all we have. </p>

<p>As a side note our mortgage would be equal or less than our current rent so we are not making a big financial leap.</p>

<p>I want to contribute as much as we can to both my childrens education. We anticipate making sacrifices. </p>

<p>My fear is that taking on this change at this time, if things dont pan out, we could alter our chances of getting FA that will be doable for the reality of our situation.</p>

<p>I know not all families who need FA have a savings, retirement or the luxury of investments. My fiance inherited his grandmothers modest portfolio 20 years ago and has held on to it this long so that he could one day buy a house. If you respond to scold me, thats fine. I will take that into consideration as well because I really dont know what to expect. If the admissions offices were open, I would be calling them for advice :D</p>

<p>Fiance is not husband/wife, and his/her income CAN NOT be included as household income since you Can NOT file tax return together.</p>

<p>I’ll second FlyHighFly. FA concerns with your ex, not your fiance.</p>

<p>Let fiance buy house and keep him and it off FA forms - unless you marry him. Report your share of payment as rent. When you get married, most community property is shared, but get a legal opinion then.</p>

<p>What all of you are saying makes total sense. I dont know what made us add him except wanting to be totally transparent, since fiances’ income is integral to our household (My income is about half of his)</p>

<p>Should I write a letter explaining our status and living arrangement? I dont want her to be passed over because it looks like I am hiding something.</p>

<p>Umm - don’t let the fiance buy the house to hide the income and assets. That leaves the mother at risk because her name isn’t on the deed and paying rent doesn’t give her legal ownership. A lot of women get caught that way if the relationship doesn’t work out. He could argue that her legal documents show it as “rent” and she isn’t entitled to half if a divorce happens. If she pays “rent” after she’s married, then it might be considered fraud. If her name is on the deed, then the house is considered half of hers in terms of assets. Does that make sense?</p>

<p>Two - fiance’s aren’t parents and until marriage the income isn’t included on a PFS.</p>

<p>Three - you have to report the stocks on your PFS whether you sell them or not. So if you liquidate to buy the house - yes - income goes up, but the schools look at the circumstances and realize it’s a one-time income boost, not part of a regular income stream. The school will see the home purchase - there is a section that allows you to list unusual circumstances and misc. information you want them to take into account.</p>

<p>Consider:</p>

<ol>
<li><p>even upper income people sometimes get financial help. So why even worry about how the dollars will work out in terms of scholarship. Just be honest about what you have and how you spend it.</p></li>
<li><p>Trying to make the numbers “smaller” may put you in a more competitive pool for limited dollars. Full scholarship kids have a tall hill to climb because so few are given awards relative to the percentage of full and partial pay students on campus. Be upfront and honest about your true economic situation and - if accepted - pay what you owe for tuition. If you have $40,000 in stocks (or more) you won’t be asked to spend it all, but you also shouldn’t expect donors to fund a large scholarship for your child when you have assets you could tap for their use. </p></li>
</ol>

<p>But again - the school doesn’t expect your boyfriend to pay tuition for your child. They may determine that given his income, you have more ability to pay a portion than if you were living alone on that income - but that depends. Different schools do things differently. And divorce is not uncommon so they’ll likely be able to help you if you simply call the financial aid office and ask how they’d like the information documented.</p>

<p>ok, Thank you Exie, this is very clear to me now.</p>

<p>I will redo my PFS to reflect my income and expenses as well as assets (or lack of) In the notes or comments area I will disclose that we live with my boyfriend/fiance. And upon request we are happy to provide his financial info. </p>

<p>As far as my daughters father, he is single and has already completed the PFS for himself.</p>

<p>Thanks again everyone!</p>