I know there are many different moving parts with the CSS. But roughly. about how much is too much annual salary to get need-based aid? $150,000, $200, 000, $250, 000, …?
The family has significant savings, (worked hard for those) and a significant annual salary.
Every college’s FA page should have a net price calculator. Every school’s aid policies are different.
At very high incomes the best aid opportunity is non-need based merit aid.
Between H and I, we are in the low six figures and none of the NPC’s I have run have given me any need based aid, even when I run it with 3 kids in college.
No good deed goes unpunished.
Sorry, I cannot resist-- my boss says this all the time, and it kills me. It’s * "between my H and me " /I
I am wondering about this too. If a family makes over 100K, are you to assume you will not receive financial aid? It seems even a moderate level of success and saving for college is punished.
I have discussed this many, many times with many, many people. Financial aid is, for the vast majority of schools, intended for the very poorest students. At MOST schools, even a moderate income means no aid other than loans and work study. Saving is NEVER a bad thing … it is only “punished” if the student gets into a highly selective, meets-full-need school … this is not a given for any student, so saving is wise (and highly encouraged by this financial aid professional). There is no magic number for aid, but the NPC will give a decent idea of possible aid. If the school uses Profile, it is possible the NPC may not give an accurate number for institutional aid - in that case, a discussion with the school’s aid office would be in order.
A family that makes over $100k and has some savings can get aid … but that is at a highly selective, meets-full-need school, and not at every such school.
Focusing on a school that offers merit for a certain test score/GPA combination is a great bet for many families. My S got a great deal from a state U because of his score/grades … he was not competitive for highly-selective schools due to his lack of EC’s (and probably lukewarm counselor recommendation, given that I am pretty sure she had no idea who he was).
^ Run the NPCs. You would still get pretty close to free education at Harvard. At your local U, no.
Folks, the answer is – it all depends.
On the school, the number of kids in college, asset amount and type, etc., etc., etc. Some schools give great need-based aid even with three figure incomes. Some do not. Run the NPCs. You may be surprised, and I mean in both a good and bad way. Because – it depends.
When I say “punished” it seems working 70+ hours a week, dh has very demanding job and works in his own business on the side and yes, doing well but nowhere near 1%er, working in private sector where we are responsible for retirement, and high health care costs…why? I’m starting to think we should work less, earn less and get more. And yes, we are well educated professionals.
Would you rather be poor? Most of us wouldn’t trade places regardless of the college aid situation. Also, note that higher income tends to translate into academic (better schools) and EC advantages that in turn help a kid do better in the metrics that matter in college admission and earning merit aid. So… if you’d like to trade your family’s income for a lower one, feel free. No thanks for me, though.
If a family earns over $200,000 and has significant savings you should be able to afford to pay full cost. Colleges are not charities for the affluent who want to spend their money on other things. You may need to tune your lifestyle down a few notches.
Give your significant savings away and voila, problem solved.
Financial aid is, for the vast majority of schools, intended for the very poorest students.
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THIS ^^
Folks, please keep in mind that MOST schools have VERY LITTLE or NO aid to give.
Guess what!!!?? If the barriers were lifted and suddenly you weren’t “punished” for your incomes or savings, then NO ONE would get aid because there isn’t a money tree out there.
I think people think that most schools have some big huge treasure chest that they’re hoarding. NO. Most schools really have no aid to give. They rely solely on the tiny bits of aid that the fed gov’t or maybe their state gov’t provides.
Going away to college is a LUXURY for 99% of people. If you want that for your kids either pay for it, or find schools that will give them merit for their stats. Otherwise, have them commute to their local state school, which is what most kids do.
Good luck with that@Empireapple. We’re a one income family earning ~$60k/year. We don’t qualify for more than a few hundred dollars of federal aid and we don’t earn enough to make up the gap after merit aid. My son has above average stats but they’re not high enough to make him competitive at meets need schools. Your kids will go likely go away to college somewhere. Most kids don’t. They end up commuting, so unless you have enough money socked away to pay for college and your retirement I wouldn’t give up your jobs just yet. There’s not as much free money out there as you think.
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I’m starting to think we should work less, earn less and get more. And yes, we are well educated professionals.
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That won’t work for most situations unless the decrease is significant AND your child attends a school that meets need.
I don’t think this is a good strategy. If you earn $200k, and decrease your income by $50k, you’re not going to get $50k of aid. You might get $10k…or nothing. It’s better to have the extra $50k
And, remember, even for those that do get aid…aid often comes in the form of loans (you need to pay back) or work study (student has to work to earn)…It’s helpful, but not exactly something to get excited about…
There are close to 4,000 colleges in the US at varying price points (some states have free community colleges, some private schools cost of to 70k a year). There are probably about 100 schools that have pockets deep enough to meet 100% demonstrated need and 3 that will meet 100% demonstrated need with considerable aid if your family makes $150k+ (with normal assets).
Parents are first in line when it comes to paying for their child’s education. When they don’t want to or feel the need to pay, they are essentially asking for other people’s parents to pay (where do you think the monies for financial aid comes from; taxpayers, and people who generously give back to their schools). Many families pay for college from past monies (savings), present income and future (loans)
Being poor does not get you a big windfall of $$ at most of the 4000 schools in the US. If you have a 0 EFC, you get a whole $5800 in Pell and a $5500 student loan. Some states (California gives generous tuition aid for instate residents who qualify. NYS gives $5100 if you have a 0 EFC and goes way down after that). Even then, it will not be enough for you to send your child “away to college” with out additional resources.
Remember the quote: I cried because I had no shoes until I met a man who had no feet.
Saving for college is not a bad thing because it gives your child options that they would not have otherwise if you made your current salary and was waist deep in debt and no way of affording school.
No one is entitled to a 70k/year education.
The overwhelming majority of schools in the US do not meet 100% demonstrated need. It is wonderful to say that if you make up to $200k ad have normal assets that you can go to Harvard for 20k. Getting around that 5% admit rate is another story.
Run the net price calculator and have a realistic talk with your child and let them know how much you are willing to pay /borrow for his/her education.
College will look different for every family.Some will happily write the check, while others do it begrudingly.
Some kids may benefit from getting a full athletic scholarship, while others may get a full academic scholarship.
Some families will seek merit money, while others will start at the local CC for 2 years while they get their monies together for the last 2 years of school.
Some students attend a 4 year school while living at home.
Some students will work over the summer (maybe even 2 jobs) while taking out student loans ($5500, freshmen, $6500 Sophomore, $7500 junior/senior year), while working on campus.
Some may be lucky enough to snag a RA position that will defray the cost of room.
Some may get a job on campus with food services where they will be able to eat free.
Different strokes for different folks.
'If a family earns over $200,000 and has significant savings you should be able to afford to pay full cost. Colleges are not charities for the affluent who want to spend their money on other things. You may need to tune your lifestyle down a few notches."
This makes me laugh
Sorry, lost the rest of my comment… we make 350k in one of the most expensive markets in the country. We have four kids we can’t write off, crappy public schools so we pay for private. Federal, state, and property taxes, plus social security, Medicare, etc… take nearly half our paychecks. After our mortgage and school tuition there is nothing left. We drive cars with 100,000+ miles on them. We have no vacation homes, rv’s, off shore bank accounts. What sounds like a lot of money in middle America may not be much in some cities, it’s all relative. We have very little savings aside from 401k. Don’t get me wrong, it’s a beautiful life and we will figure out college for four even if it means going into debt, but we’re certainly not rolling in it.