Working out finances...

<p>So out of the 12 schools I applied to, I got into 4 of them, and one of them I'm really gung ho for. The others are just really close and although they are good schools, I am really looking for more of a college experience. </p>

<p>So like a lot of people, FASFA left a lot for us to be desired. We had a EFC of about 35k the first time we did it and about 45k the second time. My parents have said the very very most they could scrape together for college is about 15k a year. FASFA doesn't really take car and house payments into account...</p>

<p>So I've been working it out so that my parents can stick to their plan, and I can cover the rest. Colgate awarded us 12k in a grant, so we are left with about 31k left to pay.</p>

<p>I figure that I can make between 3-4k this summer continuing my current job. I'm going to call Colgate and see if I can get some kind of work study program, which would be another 3k a year. On top of this, I am willing to take out about 5k a year in loans, putting me about 20k in debt when I graduate (looking into business so hopefully money won't be a problem). </p>

<p>Besides that I'm going to sell my car and gather all my savings up, and get between 16-20k in cash.... that throws another 4-5 k a year in the pot.</p>

<p>Basic breakdown:
Parent contribution: 16k
My contribution: 3k summer jobs
3k work study
5k loans
4-5k cash </p>

<p>That's about 32k a year, which would cover the expenses. This would be the first thing I've ever really paid for, and I think this is something I'd appreciate it. I really want this experience--the liberal arts education, the northeastern thing, the alumni network... Is this an admirable plan or should I just suck it up and go to a local school...</p>

<p>Thanks for sharing your wisdom,</p>

<p>-Ted</p>

<p>No...this is a very admirable and mostly realistic plan. If you are, as you said, really gung-ho about Colgate, then it is very admirable of you to try your hardest (within reason!) to make it work. My questions would be....</p>

<p>1) Can you really come up with 20k in savings/sold items? That seems like a high number, but maybe your savings and assets are worth more than I think.
2) Are there any scholarships that you can apply for? Now and in the future, it may be well worth your time to spend a couple of hours a week tracking down and filling out scholarships. </p>

<p>Also, consider appealing your financial aid award to Colgate. I know that you got pretty much what FAFSA said you should get, but if your parents really and truly can only scrape together half of the EFC a year, it seems like there are some mitigating circumstances that could convince Colgte to give you some more money. It might not work out, but what's the harm in trying? Even if they only give you another 3 or 4k a year, that would really cut down loans/work/savings expenses.</p>

<p>We contacted Colgate and they said once they verify our tax return to finalize the award, the award will go down actually. My parents sold some of their assets this year (a rental house, our boat)... So it looks like they made a lot more than they actually did.</p>

<p>My car is worth at least 8k, maybe 10k if I get it looking really nice. I have a lot of CD's my grandma has given me throughout the years... I think they are worth between 3k - 5k each. I remember being mad when I was in elementary school about not being able to use them until college, but now I'm really seeing the value of that.</p>

<p>A lot of the scholarships don't apply to me (white male...) or have been taken by the more qualified students from my school. It ticks me off that some of the most well endowed students at my school have still done all the scholarships... one girl has her own trust fund but has been applying for scholarships left and right so that she "can get some more prada bags..." </p>

<p>I'll keep an eye out though.</p>

<p>Ok, I'm glad I'm thinking within reason. Thanks for the input :).</p>

<p>Oh, I see about the assets thing. We were lucky because we very unexpectedly came into some money (Oil was struck on inherited land that we hold the mineral rights to = Half of next year already paid for for me) that is totally extra--we can use it for whatever we want. </p>

<p>Keep an eye out for scholarships, but I understand that it can be tough to find appropriate ones for more "normal" people (haven't saved the world, etc.). It's too bad that people who truly don't need them are bogarting the scholarships, but don't give up--I bet you could still make $1000 or $1500 if you really tried, and all money counts.</p>

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<p>If the parents truly couldn't "scrape together" the money, the FAFSA would have given them a lower EFC. If all it took was parents saying "we can't scrape together the money" then everyone would simply say that. It's just not true. The OP is correct....the FAFSA does not consider any kind of debt, nor should it. If the family has an EFC of 45,000 I can't even begin to guess what their annual income is...but it is higher than average...probably in the $150,000 per year range. I know it's hard, but it IS possible to tighten the belts to meet that EFC as a "middle income" family. No vacations, no new cars, no dinners at restaurants, leaner holiday and birthday gifts, more generic food products, less "luxury" items (alcohol, movies, entertainment). We also now have basic cable instead of the premium channels, carpool often, and always look for new clothes at the consignment store first (which we actually enjoy...there is some "sport" to finding a good bargain). The college kids both work during school and in the summers (lots of summer hours...multiple jobs).</p>

<p>If your parents sold assets, I'm assuming that money is now in cash assets. If assets, that will go down some as college is paid for or as they move the money into retirement accounts, etc. If some of those sales counted toward income on your parents Income Tax, then that income will drop next year or the year after. You need to try to figure out where the EFC is coming from. Assets or income. If income inflated by a one year event, that will drop. If assets inflated by a one year event, will those assets drop? If either of those scenarios exist, there is a probability that your EFC would be lower in future years. If that is not the case, probably won't change much.</p>

<p>Viserale - I'm also having some trouble digesting your family's finances. But no matter, the principal question is what can YOU do to make up the finance gap. Consider becoming an RA your sophomore year. That's worth $8K-$10K at most schools. Also, if your parent's income is unusually high this year due to asset sales, remember that EFC is reset each year based on the preceding year's income. So your EFC could fall considerably during your final three years at Colgate. Good luck with this!</p>

<p>thumper1, I was simply taking the OP at his word. Personally, I have trouble understanding when people say that they can only scrape together half of their EFC, but since I can't see the family's financial history, I try to err on the side of caution. My family has a very similar income/EFC as you have speculated, and I would not try to say that we could only scrape together $16,000/yr, but we also have a very straightforward financial profile.</p>

<p>Just an FYI...not everyone gets selected to be an RA. Yes, if you get the job, you usually get at least a free room. But there are no guarantees that you will be selected.</p>

<p>I'm a little confused by the whole EFC thing. Let's say your EFC is high, but you know your finances best and feel that you cannot/will not spend that much per year on your child's college education (multiplied by however many children you have) because it will draw down your savings too much. Savings you're hoping to draw on yourself when you retire in the not-too-distant future. So you pick a number that you're comfortable with and tell your child that's how much you will pay. Anything above and beyond that is his/her responsibility. Obviously it places limits on where the child can go to school.</p>

<p>What I'm seeing is that the schools use the FAFSA to determine "need-based" aid, and that's entirely understandable and supposedly levels the playing field. But I get the impression that many people think the EFC is the upper end of what you actually ought to contribute. As if because the government decided that you should be able to pay X amount, you really ought to pay X amount -- and offering your child less than that is being stingy and unfair.</p>

<p>^ "But I get the impression that many people think the EFC is the upper end of what you actually ought to contribute. As if because the government decided that you should be able to pay X amount, you really ought to pay X amount -- and offering your child less than that is being stingy and unfair."</p>

<p>Well, that's not how it's interpreted in our household. ;)</p>