Sending money to relatives in another country affecting ability to pay

<p>Hi, </p>

<p>So my dad makes around $80,000 and my mom makes around $40,000... however I have family in Thailand that my mom sends money to every year, a really good chunk of her income... probably $20,000 or so. My grandfather died of cancer a few years ago and she got a job directly after because my grandmother no longer had anyone to support her in her old age. So she sends money back home for her and my other relatives. That's a really big chunk of change and I was wondering how colleges would count that money into our ability to pay because all together my parents make over $100,000... and so how would I justify it to colleges? Because obviously I can't pay as much as it would seem like I can. My mom would never stop paying that money to pay for my education and of course I wouldn't want her to because it's basically my grandmother's only source of income. </p>

<p>They would view your mother as a nice daughter to send that money, but you get no credit for it for financial aid purposes. They will view your family’s income as $100k.</p>

<p>Um…$120,000. They will add the $80,000 of your dad’s income and the $40,000 of your mom’s.</p>

<p>Sending money to the relatives is nice, but it is a choice. Colleges will exoect your fsmi,y to pay your college bills first.</p>

<p>Yeah it’s $120,000… I just said making <em>over</em> $100,000 because I’m guessing that that’s around where colleges expect you to pay close to full tuition.</p>

<p>Is there any chance that sending a letter to the college explaining the situation would have any effect? Even if it’s just a few thousand dollars.</p>

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<p>Depends on the college. Some schools will still give generous grant aid even at that income level.</p>

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<p>A chance? Yes. The only sure way to find out is to try. If you don’t ask, it’s a definite “NO.”</p>

<p>Most colleges would say that this is a family choice. They are not going to give you a “discount” or say that because part of you income is helping relatives, that you don’t need to pay your costs. It is a choice. </p>

<p>Schools do not count support sent to relatives. That is considered a choice. </p>

<p>The reason schools don’t count this is: If a school were to give your family more aid because of this, then the SCHOOL would essentially be giving your family money to support a relative that lives elsewhere. Can you see how odd that would be? Do you think the gov’t would give your family food stamps if your family chose to send most of their money to relatives? No. It’s the same principle. </p>

<p>Schools understand that families support those who live in the household. Supporting others is a choice. The school believes that you support the NEEDS of the household FIRST, and that include education. </p>

<p>If your family is saying that it their choice to spend their money on a relative that doesn’t live in the household over paying for your college costs, then you have to find schools that will give you merit for your stats. </p>

<p>What is unfortunate about this scenario is that if the grandmother lived with the parents then her physical presence and the act that her daughter (the OP’s mother) is providing all of her support would have an effect on the FAFSA form (she would be another dependent for the parent, I believe). This wouldn’t necessarily reduce the parents’ income dollar-for-dollar for the amount spent the way the OP wants but it would increase the household size and affect EFC that way.
But since she is living abroad then I think that she cannot count.</p>

<p>It would be worth asking to see if that matters for institutional aid though, but don’t be surprised if they say “no”. Most schools do not explicitly promise that they will provide so much aid that parents and families don’t have to alter their budgets at all. As strange as it is to consider for some of us, sending $20K a year to relatives is a personal choice and not an expense in the same way that, for example, a huge medical bill would be. </p>

<p>Your situation is very, very common among certain immigrant communities, and because it is so common the answe is more likely to be “no” as the circumstance really isn’t special. From a family perspective, you may not have a choice, but from a school’s you certainly do. </p>

<p>Ask your parents how much per year they can contribute toward your education. At least then you have a budget within which to work as you make your selections.</p>

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<p>That may be…but usually when you have a Grand living with you, it’s not costing you $20k per year. That said, in many cases, Grands can NOT be counted as dependents or in the household because typically Grands have some sort of SS or pension payments along with medicare, so the family can’t demonstrate providing 51% of support. </p>

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<p>This is true. The bottom line is that it’s your parents’ money and they’re directing it to a priority that they believe trumps paying for college. Colleges aren’t going to make up for that. </p>

<p>So, since it sounds like you will have a problem with an unaffordable EFC, find schools that will give you HUGE merit awards so that your remaining costs can be covered with family funds and a small student loan. </p>

<p>Keep in mind that a merit award DOES NOT first get applied to what your family is supposed to pay. So, you can’t run the NPCs and see that your family has to pay $25k, and then think a $10k merit award will bring it down to $15.l It won’t. You would need a HUGE merit award applied to the TOTAL cost to get costs down to $15k.</p>

<p>It is a humanitarian thing to send money, provide services, send support to those in need, whether they are family members or any human being. But it is considered a choice. You can look up the IRS definition of dependent, and under certain circumstances, an elderly parent in need can so be taken as a tax exemption, but the definitions are specific as to when and how that can be done If that can be done, if it passes the IRS dependence test, then that person could be counted as a member of your household. THat would give your family a larger asset protection allowance. You can then appeal that a member of your household has unusual medical needs. This is possible when support of a dependent is shared among a number of family members even though the parent is not living with the household taking the dependent for tax purposes. YMMV as to how schools will handle this.</p>

<p>Be aware that the income of the dependent and others parts of the situation have to meet the requirements of IRS rules. Even so, it’s up to the individual colleges as to what each will take into consideration, but this gives your family some opening. </p>

<p>I want to add that I have both mother and mother in law (actually HAD as my MIL just passed away) living with us for a number of years, and though we absolutely subsidize them, the meager money my mother gets is still too much for her to be claimed as a dependent.</p>

<p>"Qualifying Relative</p>

<p>Many people provide support to their aging parents. But just because you mail your 78-year-old mother a check every once in a while doesn’t mean you can claim her as a dependent. Here is a checklist for determining whether your mom (or other relative) qualifies.</p>

<pre><code>Do they live with you? Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list.
Do they make less than $3,950? Your relative cannot have a gross income of more than $3,950 and be claimed by you as a dependent.
Do you financially support them? You must provide more than half of your relative’s total support each year.
Are you the only person claiming them? This means you can’t claim the same person twice, once as a qualifying relative and again as a qualifying child. It also means you can’t claim a relative—say a cousin—if someone else, such as his parents, also claim him."
</code></pre>

<p>From TUrbo Tax. Look at IRS rules. Also the person has to be a US citizen or permanent resident or fit some other category. Again look at the IRS definition of a dependent. That is often what can make the crucial difference.</p>

<p>Cptofthehouse, my sympathies on the passing of your MIL.</p>

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I think that is another factor that varies. I also come from an immigrant family and while my grandmother was a permanent resident with a Social Security # she never had an American job while she was in the United States and was supported entirely by my parents. Even with Medicare it would have been trivially easy to prove that, and I suspect that this situation is very common for immigrant families where an elderly grandparent comes over from the older country and stays with the family for the remaining part of his or her life. They aren’t working, they aren’t drawing pensions (how many folks even have pensions nowadays?). Of course, the OP cannot even consider this since the parent lives away. </p>

<p>If you have a grandparent or other relative that you are supporting or assisting in support, that person does have to meet citizen, permanent residence or other IRS sanctioned category to be considered a dependent The person also has to have an annual income of under $3950, again, as defined by the IRS. Because such family members might be supported by several family members, not just one, the IRS does permit multiple family members to “take turns” in taking the dependency exemptions for tax purposes. One does have to look up the IRS rules as to how this works. </p>

<p>If the family member can be and is a dependent of the student’s household, then medical and extenuating circumstances can be explained, and a request for a professional judgement for this to be taken into consideration is often honored. Now IF the person does not meet IRS standards for dependence, a school might still give consideration, but usually the chances are lower. It’s up to the financial aid office of each school, and if the school decides to give some sort of break, the school would ask for the paperwork and evidence that they required for such situations. So I would not rule out entirely, that if a family has an ailing non citizen, non resident, out of country grandmom, that is being supported, that a college won’t take that into consideration However, from what I have seen, not usually, and not much. The few cases I have seen, the colleges, and these are the more generous colleges, simply gave a larger asset allowance for those documented medical expenses paid for by the family. Not the expenses incurred, not the expenses paid, but those medical expenses direct paid by a family. However, that’s not saying that no school will ever take any consideration for any such case except that way. Absolutely, it is possible a school might I just want the OP and anyone else in such a situation to be aware, that there isn’t much consideration many times in most situations.</p>

<p>My sympathies to all who are in such situaions. As I stated, I have my mother living with me on a government pension (not Social Security). She doesn’t clear $20K in a year, and half of that goes to medical expenses and her insurance premium. She owns nothing. If she did not live with me, where and how could she live on what’s left? Yet she owes federal taxes each year. And I can’t claim her as a dependent because she gets too much money. The only reason she is making ends meet is because she is living with us. Before that, my brothers and I paid her rent and gave her a supplementary allowance so she could afford to live. That and nibbling away at my late father’s insurance payout which is just about gone by now, was how she made it But none of us got a dime in tax deductions, credits or any consideration for anything. It was just money we chose to send to a person. Even now that she is in dire medical condition, living with me, she is considered too well to do to be considered a dependent, and she certainly would not qualify as a consideration for financial aid without a request for professional judgement. That she is not an IRS sanctioned dependent would make that a low probability that any fin aid dept would take into consideration her expenses. </p>

<p>So I do recommend to the OP to send to each financial aid department an explanation of the circumstances, and what amounts are being sent to the relatives(s), Do appeal for consideration Doesn’t hurt, but frankly, I don’t think it will amount to much. I say that to keep your expectations in check about this. Any consideration you get, do treat as a bonus. </p>

<p><<<<
So I just ran the NPC for Amherst, Williams, Swat, and Wellesley… Swat, Wellesley, and Williams were all in the upper 20k- lower 30k range, and Amherst’s was… 47k??? It seems ridiculously expensive in comparison to the others… almost double the price. But I heard that their aid is supposed to be extremely competitive? Just how accurate is their NPC?</p>

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<p>Have you asked your parents how much they’ll pay each year? </p>

<p>Do either of your parents own a business? If so, then likely the real results will be WORSE.</p>

<p>Do they have substantial savings? </p>

<p>If you’ve shown the results to your parents and they’re totally fine with paying whatever the costs, then super. </p>

<p>If they say that they can’t pay because of the relative’s support, then you need to find schools that will give you large merit for your stats. </p>