We came back with a ridiculous six-figure EFC that represents 80% of our family’s take home pay. Parents are close to retirement and while they have some $$$ in retirement accounts, they diversified their assets by investing in real estate. If that money had instead all been put in a retirement account, it would not have to be reported on the FAFSA Instead, by trying to diversify and invest wisely, it has come back to bite us. There is no way we can “afford” an EFC of $152,000+ per year and still pay our mortgage or put food on the table. It is utterly laughable. Anyone else have this issue?
It’s pretty irrelevant what the EFC says. With a $250k+ household income and significant non-retirement assets, you won’t qualify for financial aid, unless maybe if you have other siblings in college (which from your rant sounds like you don’t).
What is your family gross pay? Sounds like it’s in the $250,000-$300,000 range…and that doesn’t include your assets in real estate.
With a $250,000 incime, did you really think you would get need based financial aid?
And do you expect need based financial aid to,be given to you so that your family can own real estat other than your primary residence…in other words…should need based aid pay you so that your family can hold onto these assets?
They could sell a property to pay for your college costs. Most college students don’t have that option…or your family income.
There are tons of less expensive college options. Your EFC may be $150,000…but the good news is there is no college,that costs that much…and there are many that cost less than $25,000 a year. Start with your own instate public universities.
Your family won’t pay that amount–they’d be paying at most full freight, namely $60-70k a year for the most expensive privates. You won’t get any need-based aid given your family’s income.
Depending on your stats and the school, there is still the possibility of merit aid. Or you can look for colleges that are significantly less expensive than that $60k level.
How much can your family afford to pay for your college costs per year?
Your parents will either have to make sacrifices or you will go to a state school or a private school that gives merit aid, if you qualify.
your family is quite rich compared to 90% of Americans. You cannot expect handouts.
In addition to providing diversification, your parents investment in real estate throws off income (unlike buying a painting or an antique desk which may or may not increase in value but has no cash flow).
How do you expect financial aid formulas to work- give you money in addition to the income from real estate when your family is already earning at the top of the income scale?
Pick a less expensive college, sell some real estate, tighten up on living expenses, take out loans, take a gap year to work and save. Start at community college and commute from home to save, going to U for the last two years.
Any number of options. A kid from a family with no assets and low income doesn’t have quite as many.
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There is no way we can “afford” an EFC of $152,000+ per year
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You didn’t think that you’d be expected to pay that much, right? You do know that your schools do NOT cost that much. Your schools probably cost between $25k-75k per year, right? So, obviously no one is expecting you to pay $152k for a school that costs $75k or less. You do understand that, right??
$152k is 80% of your family’s TAKE HOME pay. That means that your family’s take home pay is around $190k…which means the GROSS is likely $250k+
Am I wrong?
Guess what…even if your parents didn’t have any assets (let’s pretend they have NONE), their income is still too high for you to get financial aid.
So, instead of being upset about the real estate, accept that their income ALONE is too high for FA. Frankly, with that income, it seems odd that they would have bothered with FAFSA to expect any aid other than a loan.
how much will your parents pay each year??
Right. The FAFSA formula is heavily weighted towards income. Your parent income far exceeds the amount where need based aid would,have been a reality…even at the most generous colleges.