The Whine About The Fin Aid Package Thread

[applicannot]

<p>

I do like to get some clarification from you about this refund check. Does that mean Wash U pays you everythings - from books, to foods, etc, plus $3900 cash?

</p>

<p>Okay, so, the Washington University CoA is $52,892 for the 2010-11 school year. That includes room, board, fees, and tuition. This was my financial aid package:</p>

<p>Eliot Scholarship $15,500
Enterprise Rent-A-Car Scholarship $35,000
Anticipated Pell Grant $5,550
Academic Competitiveness Grant $750
TOTAL: $56,800

• Federal Work-Study $2,000</p>

<p>Cost of Attendence: $52,892
56,800 - 52,892 = $3908 refund, plus or minus excess meal plan or room choice (those figures are for the average meal plan and a double, however)</p>

<p>

Stanford, on the other hand, would also pay everything but ask you to contribute $1000?

</p>

<p>Stanford will pay for tuition, room, and board, less about $750. So I don’t qualify for a refund/stipend from them, I actually owe them some negligible amount (for the record, I’m NOT complaining about the amount).</p>

<p>

Because each school estimates the none school part of expenses differently. Stanford’s COA may include $5000 personal expenses. They will pay $4000 and you pay $1000. If you could live by that $4000, you don’t actually has to pay Stanford any thing.

</p>

<p>Yes and no. I will show you my calculations:</p>

<p>Student contribution: $5600</p>

<h2>- Non billable expenses: $4870 ($1485 books, $1000 travel, $2385 personal expenses)</h2>

<p>$730</p>

<p>

You also need to consider other possible expenses. For example, Stanford at Hawaii program. If you are on FA, you don’t have to pay one penny, not even the airfare.

</p>

<p>This is exactly what I’m trying to do. Stanford also has a plethora of summer programs and employment opportunities, as well as some intangible benefits like better weather (important for someone clinically depressed!) and a larger population of low-income students. WashU has some of these benefits, too. I think it’ll pan out a little better after a) the visits and b) huge spreadsheets (very calming).</p>

<p>

Also, have you confirmed with Wash U if this offer will be the same for years 2- 4?

</p>

<p>No. This was another issue. But, the guide book with my FA package does say this:</p>

<p>“When we renew awards, nearly all scholarships remain the same or increase from one year to the next. … Awards are reduced only if family circumstances improve significantly.”</p>

<p>

BTW, if you are Stanford EA, I think the FA package is only an estimate. Please do talk to them about your needs.

</p>

<p>Yes, my financial aid package was only an estimate (but QB, not EA). I am going to contact someone at Stanford to see if we can’t orchestrate something better.</p>

<p>

Did Stanford include Staffords in your package?

</p>

<p>Neither package includes any loans whatsoever.</p>

<p>

Have a significant summer earnings expectation?

</p>

<p>Stanford has a significant base student contribution ($4500 for freshman and more for upperclassman), although they calculate non-billable expenses into the cost of attendance. Washington University appears to have waived the student contribution in my package, but good point; I’m not sure if they will require a student contribution in later years.</p>

[missemily516]

<p>cptofthehouse - that is exactly what my DD is experiencing. She has gotten 2 financial aid offers, both offer scholarship/grants for tuition, which leaves 12-16K of loans for us to take out to cover room/board/expenses. </p>

<p>By the way, this is my very favorite financial aid thread…I have leared so much in 260+ posts!</p>

[electronblue]

<p>Wow applicannot, congratulations on your opportunities. Do you have to pay tax on scholarships in excess of costs? That might not be an issue at your income level but something to consider.</p>

[applicannot]

<p>

Do you have to pay tax on scholarships in excess of costs? That might not be an issue at your income level but something to consider.

</p>

<p>I have no idea. If they are taxed, I certainly can’t pay the taxes.</p>

[abasket]

<p>Since this is a whining thread and I started the thread can I have permission to whine that applicannot has such a sweet package??! :)</p>

<p>Who’s baking/buying the snacks for this week’s whine???</p>

[missemily516]

<p>I’ll make cherry brownies (Brownies with cherry chunks in them) and send them to all posters in this thread!</p>

[lgreen]

<p>

Do you have to pay tax on scholarships in excess of costs?

</p>

<p>You will probably have to pay tax on the portion of your scholarship or financial aid that covers room, board, and personal expenses. That has been the case for my dd. She has to make quarterly estimated tax payments to avoid owing tax plus penalty at the end of the year.</p>

<p>The portion of the scholarship or financial aid that covers tuition is tax-free.</p>

[abasket]

<p>I’ll take you up on the brownies!!! </p>

<p>Got an email that another fin aid package is ready - waiting on S to come home and set up his account so I can view it! This school is very similar to the one I whined about above - will be curious to see how similar they are. One can only hope for better!!!</p>

[Youdon_tsay]

<p>applicannot, does that Stanford COA include books/travel/personal expenses?</p>

[applicannot]

<p>

You will probably have to pay tax on the portion of your scholarship or financial aid that covers room, board, and personal expenses. That has been the case for my dd. She has to make quarterly estimated tax payments to avoid owing tax plus penalty at the end of the year.

</p>

<p>Well, what’s the rate on that kind of thing?</p>

<p>

applicannot, does that Stanford COA include books/travel/personal expenses?

</p>

<p>Yes, but most of the Stanford non-billable COA is negated by the student contribution, hence why I only owe them a small portion of the money.</p>

[mommusic]

<p>“scholarships in excess of costs”? </p>

<p>I’m pretty sure you can’t accept scholarships in excess of costs. The maximum you can get would be to cover tuition, room, board, and indirect costs such as books. (You can’t bank the excess!)</p>

<p>And you have to pay taxes on room/board scholarships but not on tuition money. Not sure if this is a new IRS reg or not.</p>

[GA2012MOM]

<p>Sorry to be the bearer of bad news applicannot, but IIRC, my D had to pay abound $1700, maybe a little more last year on her portion of her grant money, so yours would probably be similar since their grant money is approx the same. I know you have a job as well, so the amount you would have got on a return will be deducted from that.</p>

[applicannot]

<p>

I’m pretty sure you can’t accept scholarships in excess of costs. The maximum you can get would be to cover tuition, room, board, and indirect costs such as books. (You can’t bank the excess!)

</p>

<p>I’m 100% certain you can accept scholarships in excess of cost.</p>

<p>

Sorry to be the bearer of bad news applicannot, but IIRC, my D had to pay abound $1700, maybe a little more last year on her portion of her grant money, so yours would probably be similar since their grant money is approx the same.

</p>

<p>Okay, that’s fine. The question is, where am I supposed to get $1700?</p>

[MTnest]

<p>You have to pay the taxes on the money for room, board and extras. They will send you a tax form yearly to file with the IRS. We have been getting those forms every year for our child’s scholarship.</p>

[mommusic]

<p>applicanot–you use the money you saved by not having to feed your child for 9 months.</p>

<p>Edit: (I mean, of course, parents pay the taxes in gratitude for not having to support the child.) ;)</p>

<p>And at UC (Cincinnati) at least, let me quote from the scholarship letter:</p>

<p>

the total of all awards cannot exceed total direct and in-direct costs of education. Indirect costs include UC allowances for personal and transportation expenses.

</p>

<p>So for at least one college, you may not accept more money than you need for education plus reasonable expenses. I would be interested to know which colleges allow you to accept money you don’t need but someone else does.</p>

[GA2012MOM]

<p>Applicannot, you can always ask FA if they will increase your grant to cover your taxes, especially Stanford, knowing that they chose you as a QB match. I have heard of adjustments being made for very low income kids.</p>

<p>

applicanot–you use the money you saved by not having to feed your child for 9 months

</p>

<p>applicanot is the student, not a parent.</p>

[applicannot]

<p>

applicanot–you use the money you saved by not having to feed your child for 9 months.

</p>

<p>That was a rhetorical question, sorry. I contribute far more than $1700 per year to my mom, but since I likely won’t be working in college (well, hopefully), that negates the extra money. I mean, it’s not as though I have a choice to pony up, but that is a disappointing development. I will probably have to take out loans to pay the tax, since it’s doubtful I’d make considerably more than $1700 by working, anyhow. I didn’t realize that was the case - well, I did, but I didn’t realize that I’d have to pay on room and board as well as the excess (on which I’d be happy to pay taxes).</p>

<p>

I would be interested to know which colleges allow you to accept money you don’t need but someone else does.

</p>

<p>Well, the excess includes the “reasonable expenses,” which is why it’s excess. Anything above billed expenses is excess to me, and can be used as necessary; i.e., it can be used for transportation and book. I also wouldn’t call it “money * don’t need,” considering I really don’t have the money for transportation, books, etc.</p>

<p>

Applicannot, you can always ask FA if they will increase your grant to cover your taxes, especially Stanford, knowing that they chose you as a QB match. I have heard of adjustments being made for very low income kids.

</p>

<p>That’s exactly what I plan to do. I know Stanford has an ambassador for low-income students, and so that may very well be an option. They have been accommodating so far, that’s for sure. I actually think that would be a very reasonable request at Stanford. It is difficult to be on full need-based aid and yet be expected to pay taxes on it in excess of $1000! But, if worse comes to worst, $2000 a year in Stafford loans won’t kill me…</p>

<p>

Edit: (I mean, of course, parents pay the taxes in gratitude for not having to support the child.)

</p>

<p>Well, this is only really true if the parents support the child!</p>

[rocket6louise]

<p>

Edit: (I mean, of course, parents pay the taxes in gratitude for not having to support the child.)

I am going to “ditto” what applicannot said. Not all parents value education like CC parents</p>

[CountingDown]

<p>This also assumes the parent can <em>afford</em> to pay the taxes for said child’s terrific FA package. In many cases, this would fall to the child, no matter how grateful the parents may feel about the FA that enables their child to attend college.</p>

<p>At UMD, the “full ride” covered room, board, tuition, fees and a book allowance. Some kids also got an additional Maryland Distinguished Scholar award (generally in lieu of NMF awards) – this was $3,000 on top of the above and could be applied to personal expenses (up to the amount budgeted by the school), travel, laptop, etc. For S1, it meant a full ride plus spending money in his pocket.</p>

[mommusic]

<p>^I agree, and those of us who are whining about EFCs should keep in mind the “nontraditional” students who perhaps never had parents with the the ability to contribute any money at all. Some students realize too late the importance of college, can’t get merit aid, & can’t afford tuition even at community college.</p>

<p>But I don’t mean to hijack the thread! Let the whining continue! ;)</p>