<p>After working on fafsa/css profile, and playing with a few EFC and aid-estimation calculators, I'm getting the sense that roughly they're going to take all of our (parents and kids) non-retirement cash/investments, which is fine. That's why we saved it.</p>
<p>After they deplete that, and when in subsequent years I no longer have those amounts to list on the finaid applications will they school we choose raise their grants to take into account our reduced circumstances?</p>
<p>I know that this depends somewhat on our income, value of our property (will they indirectly require us to loan against our home equity, since we have decent equity and not a huge amount left on our mortage?). I also realize aid varies and is somewhat dependent on whether the school is need blind or not, and whether they have a meet all needs no loan policy.</p>
<p>But is the rule of thumb that we can expect a better aid package after our cash is gone?</p>
<p>I presume this is not an unreasonable question to ask of a finaid office when thinking about which school to accept.</p>
<p>they school we choose raise their grants to take into account our reduced circumstances?</p>
<p>Generally yes. Especially if school meets 100% of need.
For example- older D school met 100% of need. Our EFC was still a shock- as it is to most families- but we recognized that the financial aid offer was still good.</p>
<p>When less than a month into the school year, our circumstances changed ( H was forced into a lower paying position after 9/11 budget cuts), as soon as the school received a copy of the new check stub, they increased the grant.</p>
<p>A school that * doesn’t meet* 100% need- may or may not adjust aid- it is best to ask, to get an idea of how they will be to work with.</p>
<p>
</p>
<p>I’m not sure how you figure this. If you are talking assets only, schools typically assess a PORTION of your non-retirement cash/investments, not the whole amount.</p>
<p>I realize that they apportion an amount of assets (lower for parents than students), but when I did a finaid estimate calculation at one of the schools, the out of pocket after a projected grant was significantly higher than EFCs I’ve calculated, as if they were going to take it all–if not this year, then in the next one or two.</p>
<p>I was also surprised to see such a low estimated grant given that we have two kids in college. </p>
<p>We have a decent income, but with three kids, we won’t be done with college until 2019. (Or as I like to say, 3X$200,000=$600,000.)</p>
<p>*After they deplete that, and when in subsequent years I no longer have those amounts to list on the finaid applications will they school we choose raise their grants to take into account our reduced circumstances?</p>
<p>*</p>
<p>You can’t really say that.</p>
<p>First of all, financial need is based mostly on income, so if you’re still earning a good income during the entire time that your children are in school, you may never get much aid.</p>
<p>Secondly, most schools do not meet need. So if child #3 wants to go to some school that doesn’t meet need, then you’ll still pay $200k, even if you have some need.</p>
<p>*We have a decent income, but with three kids, we won’t be done with college until 2019. (Or as I like to say, 3X$200,000=$600,000.) *</p>
<p>Who knows how many schools will “meet need” at that point.</p>
<p>*I was also surprised to see such a low estimated grant given that we have two kids in college.
*</p>
<p>Sounds like you have a high income…or a very large amount of unprotected assets.</p>
<p><a href=“will%20they%20indirectly%20require%20us%20to%20loan%20against%20our%20home%20equity,%20since%20we%20have%20decent%20equity%20and%20not%20a%20huge%20amount%20left%20on%20our%20mortage?”>I</a>. I also realize aid varies and is somewhat dependent on whether the school is need blind or not, and whether they have a meet all needs no loan policy.</p>
<p>*</p>
<p>That’s not what a “no loan” policy means. The 'no loan" policy means that the school won’t meet need by giving the STUDENT any stafford loans. </p>
<p>It doesn’t mean that the school won’t look at home equity or other assets and think that you can sell or borrow against those assets.</p>
<p>A few schools won’t look at home equity, but a good number of CSS schools will. </p>
<p>Again, who knows which schools which schools will have what policies as the years go on.</p>
<p>
</p>
<p>If finances are an issue, you might want to look for less expensive options than $50K per year for college.</p>
<p>Agreed…your income must be high…and your unprotected assets as well. If you have significant home equity, a second home, large savings (non-retirement), a business…you will see some of your assets used for college costs. </p>
<p>BUT as you say…that’s what you’ve been saving for!</p>
<p>“I realize that they apportion an amount of assets (lower for parents than students), but when I did a finaid estimate calculation at one of the schools, the out of pocket after a projected grant was significantly higher than EFCs I’ve calculated, as if they were going to take it all–if not this year, then in the next one or two.”</p>
<p>The plain and simple fact is that MOST colleges and universities do not meet need. Period. You should absolutely expect gaps between your EFC and what the institution will cover.</p>
<p>Sit your kiddo down, and talk about the money issue. Set clear standards for how your family will determine what is and what isn’t affordable. If, after running the NPC at each institution’s website you determine that none of them are affordable, then take another long hard look at your kid’s options. Maybe an in-state public. Maybe a Gap Year so that a whole new list can be drawn up that takes the family budget into better consideration.</p>
<p>Yes, you are in the proverbial driver’s seat…not the kids. Sit own figure out how much you need in your retirement accounts and how much your can forgo and how much you can add while your kids are in college. Then sit down and figure out how much can come out of current earnings and do this spanning the years you will have kids in college. That should give you a rough annual budget to work with. Be conservative with it as costs have been rising. Then give the kids the budget and go look for colleges. $50,000 a year colleges might be out of your budget, only you can figure that out.</p>
<p>The colleges tell you what they think you can afford. The only one that tells us what we can afford is us and sometimes our financial planner.</p>
<p>We’re stuck wondering the same thing. In our case, DD has enough savings in her name to cover 2 years. It appears that almost all of this is included in the EFC for the first year. I knew we wouldn’t qualify for financial aid this first year, but filled out all the forms anyway out of fear we would not be able to apply after the freshman year- I think I read that on one of these threads. Since the private schools have very high graduation rates I am assuming they will work with us and review finances once the cash is gone.</p>
<p>*Since the private schools have very high graduation rates I am assuming they will work with us and review finances once the cash is gone. *</p>
<p>Your EFC is based mostly on income…so the assumption is that you’ll be using current income and savings towards COA.</p>
<p>Just spending your savings for your EFC may not achieve what you think IF you still have a decent income.</p>
<p>It’s not like schools think that people are ONLY supposed to spend savings. Once you’re beyond about $80k in income, schools expect you to pay about 30% (or more) of your income on college (even without ANY savings).</p>
<p>It might be a huge mistake to assume that after paying for 2 years (from savings) that the school is going to give you a lot of aid.</p>
<p>That money saved in your CHILD’s name is assessed as an asset at 20% per year. Too bad it wasn’t saved in the parents’ names…parent assets are assessed at about 5.6%.</p>
<p>Owls, what you are seeing is the EFC based on YOUR income PLUS added to that the %age of your daughter’s assets.</p>
<p>Having said that…congratulations to your daughter for having this savings. I’m assuming this was done to help her pay college costs. Consider it wonderful that you have this…many would not even have the opportunity to save that amount.</p>
<p>* DD has enough savings in her name to cover 2 years. It appears that almost all of this is included in the EFC for the first year.*</p>
<p>It sounds like your D has enough in savings to pay for 2 years at a state school, but your EFC is so high that it is the entire amount saved.</p>
<p>For instance, do you mean something like this:</p>
<p>Cost at a state school is about $20k.</p>
<p>D has $40k saved.</p>
<p>EFC = $40k.</p>
<p>Since savings in a student’s name is assessed at 20% (in the example: $8k), that suggests that YOUR income is causing the greatest impact to EFC. So, your EFC will still be high even after your D spends her savings on the first 2 years of college.</p>
<p>Even if my example isn’t accurate to your situation, since your EFC is equal to 2 years of college, then it’s likely your income that is driving up EFC and will always be higher than the cost of the school unless your income drops.</p>
<p>OP,</p>
<p>I have kind of come to the same conclusion, but like you have been fortunate enough to save for our kids, and even more fortunately the first two have been able to gain admission to schools that meet 100% of need.</p>
<p>For FAFSA there is an age-related assest exclusions. Once non-retirement assets drop below that amount, e.g. $41,300 if the oldest parent is 45, your assets are zero in the EFC calculation.</p>
<p>Since your mentioned CSS and total cost of attendance indicates private schools I’m guessing CSS governs EFC for you. For CSS calculation of EFC, all bets are off. There are no uniform standards from schools to school. There are some standard guidelines, but schools can tweak the formula however they wish, including treatment of home equity. The CSS allowance for 2 or more in college is not as generous as FAFSA. </p>
<p>I have found that the only way to “beat the system” is to live frugally, to spend less than what FAFSA and CSS expect you to subsist on. It’s not always possible, especially in higher cost areas of the country, but little things add up and can make a difference in how fast your assets dwindle.</p>