<p>
[quote]
In general, highly educated people do better than those who were not.
[/quote]
Well, yes. But the question is whether or not an ivy degree means someone is more highly educated than at a less prestigious school. Not to mention the undeniable fact that for many fields of study, the ivy league schools do not have the best programs.</p>
<p>If it worth filling out even if you don't qualify for need based aid. We were not going to fill it out. At one of my son's schools he missed the merit aid cut off due to a low grade point average. His SAT score was quite a bit above the merit aid score but they did not make exceptions. This eliminated the school since he had to get merit aid to attend. They told us to go ahead and fill out the FAFSA because you never know. Low and behold he was granted a University Grant. In the end he still ended up at a different school but filling out the FAFSA gave him more choices.</p>
<p>Dad II, back on post # 47 you said your daughter does not expect you to pay 40K per year. Good for her; she is thinking about you. With that as a start, take a good look at her current list and make sure some of the schools with merit aid possibilities are still in the running. She is being reasonable. Are you?</p>
<p>Great education? Yes. Highly educated? Yes. Great opportunities? Yes. Couldn't agree more.</p>
<p>But the terms "best institutions" and "what we could pay for" are open to debate, and they are different for different students and families.</p>
<p>D only applied to schools that she would be in heaven if she got in and could go, or have substantial financial merit awards. Some schools fit into both categories.</p>
<p>She has already been admitted to two state flagships and we heard yesterday that she is a Semi-Finalist for President's Scholarship at Georgia Tech :eek: WOW. </p>
<p>She applied to Purdue because of the generous scholarships that are merit only though she is unsure about this selection.</p>
<p>I told her that once accptance letters came in we would schedule visits. I have been hoarding frequent flyer miles :D</p>
<p>There is a school on the list for every contingency... It will just be a balancing act at the end and perhaps some hard decisions to make.</p>
<p>
[quote]
Question: The schools all tell you to fill out the FAFSA, that you never know, more people qualify for aid than you think, etc.
Surely there is a ballpark figure that tells you to not even bother?
Is it ALWAYS a good idea to fill out FAFSA, even if someone has over $150,000 in income and owns a home?
[/quote]
</p>
<p>I was at a fin aid session during our tour of Whitman College (WA), and the same question was asked. The answer was, as I recall, a family making more than $150K with some modest home equity and with only one kid in college might not even bother. Then a fin aid consultant hired by our local school district said that filling out forms was always a good idea "just in case".</p>
<p>You must fill out the FAFSA forms if your child might need a Stafford Loan. There are two types 1) subsidized (this is the old GSL that many of us remember fondly - heck some of you are probably still paying yours off), where the interest is deferred until sometime after graduation, and 2) unsubsidized, same general interest rate, but, and this is a big but, interest begins to accrue at the moment of inception. I am not sure if the interest is simple or compounded. </p>
<p>Some parents have child take out these loans just to be invested in the process. I am not going to make a judgment on this philosophy without knowing how the interest is treated.</p>
<p>Some parents have kiddos take these out so there will be $ left for grad school.</p>
<p>DS1 and DS2 are 15 months apart. They should have been one year apart in school. Guess we shouldn't have let one of them skip...</p>
<p>Our EFC is perilously close to full pay -- we'll be completing FAFSA/PROFILE if for no other reason than to document ongoing medical expenses and health issues, and so the guys can get unsubsidized Staffords (like others here, we want them to have skin in the game).</p>
<p>The only time we expect to see a whiff of real FA is when both are in college.</p>
<p>I find insulting that every .01 of pretax $ I put into a retirement account at work gets added back into my 'spendable' money by the Fafsa form. I think you should get a retirement 'allowance', like you get an income and savings allowance. I think maybe disallowing funds under 10 % of your AGI put towards pre-tax retirement would be fair.</p>
<p>I should look up the article and quote it correctly, but this will get the essence of an article in forbes magazine a month or two ago. Someoen did a study of students who were admitted to Ivy schools but didnt attend and compared them to those who attended. Based on whatever criteria (probably some variant of earnings) there was no difference between those that were admitted but didnt attend and those admitted and attending. The point being it was the individual and not the school that made for 'sucess.' Not trying to downplay the intangibles ... but looked like a good study</p>
<p>Something to consider</p>
<p>rty456, Yes, I went to an Ivy and do believe I would have been in the same socioeconomic class or whatever had I gone to the honors program of my state school where I was also accepted. I know for a fact that people see it on my resume and think I'm smart, but once you're employed, I don't know if it matters for career advancement. That said, I would still mortgage everything if my kid got into Harvard!</p>
<p>I also feel that it is the individual, and not the school, that makes for long-term success. I can see that in action with my own son, who has accomplished far more in terms of taking advantages of opportunities at his CSU then he did when he started at a private LAC -- I'm very glad he took time off to grow up and get some real-life work experience, I think in the long run the change in attitude & work ethic is far more important to his success than the name of the school on his degree.</p>
<p>My d., at a prestige school, has lined up an incredible summer internship overseas, only because of connections, via the near relative of a close friend. However, this close friend is someone she knows from her public high school who attends a different college -- so much for the prestige school. That being said, I'm glad to pay the extra cost of sending her to her elite private -- but only because I see her also taking full advantage of the educational opportunities offered there. So I see myself as paying for a high-quality education because I love my d. and like to see her enriching her mind, not because she's going to get a better job in the end.</p>
<p>some good news from Duke:</p>
<p>Some financial aid notes:</p>
<p>On funding retirement: Even though FAFSA will add back the nontaxable portion of your previous year's contribution to a 401K or IRA, if you can afford to do so, you are better off continuing to fully fund the accounts. This is because the amount you save in reduced income taxes is much higher than the increase in EFC. I've done the math, it is always true -- I'll be happy to take anyone through it if they need to see. In other words, your bill to IRS might go down by $1000 at the same time as your EFC increases by $400 -- leaving you $600 ahead. (I've made up these figures for the example, but they are fairly close to the difference you might see, depending on tax bracket). Personally, I'd rather pay the money to my d's college than to IRS anyway.</p>
<p>To Dad II: The number that goes on the FAFSA is your adjusted gross income, not taxable income. You should download a FAFSA worksheet here:
FAFSA</a> - Free Application for Federal Student Aid</p>
<p>You will see that the instructions are very clear, even telling you which line of your 1040 to pull the figure from -- (for the current year, line 36 of the 2006 1040). Also, the amount of money you have put in the 401K will be added back in Worksheet B. </p>
<p>I think it is wonderful that when you talked to your d. she immediately told you that she did not expect you to pay $40K for her -- I am assuming that she has a public U. as a safety so that she will have a less expensive option. My d. was the same way - and she expresses dismay every time she sees the bill from her current college. ("Oh, Mom! how will you ever pay that?") Even though I have decided to fund her college for more than the amount I promised her ($=state U.) - it makes me feel happy to know that she is appreciative and concerned -- of course I answer, "I'll manage -- you just worry about your part and I'll take care of mine." When I read the kids complaining on another thread of this board, I feel so fortunate that my own kids are grateful for what I can give and do not complain over what I can't, nor question my reasons for saying no. </p>
<p>I also think it is wonderful that you have talked to your wife about how you will manage that $40K if your d. gets into the dream school. That is also what I did -- when my d. got into the college she now attends, I knew I was willing to pay more than I had promised-- again because my d. has the attitude that I know she will appreciate and take full advantage of every opportunity she is given. The return on my investment is the pleasure I get from seeing my d. doing so well-- and I really see it as a partnership where my d.'s role is to work very hard for the funding I am providing. So just as I would be willing as an employer to pay a higher wage and a bonus for a hard-working and productive employee, as a parent I am happy to pay a little extra when I see my d. doing her part.</p>
<p>Now you know why some people who make over $150K a year suddenly feel very poor when faced with college costs. This is also the source of some of the posts you read on hear from kids who are talking about parents who refuse to pay anything - it may not be that the parents refuse to pay anything, but that they just can't or won't do what is necessary to cover that EFC.
I could have a new Lexus every year - but I think college is more impotant. Is it worth what it is costing me? I not at all convinced, but DD is happy, and maturing wonderfully at the school of her dreams, that is worth something to us.</p>
<p>I'm having a bad day, wrote that check!</p>
<p>Wow, every time I see these threads, I don't know how yall do it.</p>
<p>calmom -- Thank you for always taking the time to write your extremely informative posts. You are a real resource on these boards.</p>
<p>How do we do it???</p>
<p>Either by making TONS of money (not my case)
Or by living WAY below my means for MANY years.</p>
<p>I never made over 40K until 10 years ago. My AGI has never been more than 52K</p>
<p>I didn't buy a house until I was 40 (2002) (and even then I bought much less than I could have afforded)
I drive a 17 yo car
No vacation that ever cost more than $500 in a year
Shop for clothing only on extreme sales
clip coupons - shop sales
last new piece of furniture was purchased in 1997.</p>
<p>Yet I was able to save nearly 60K. </p>
<p>Did I mention I am a single parent who never got a NICKLE of support from my son's father (he has never met his dad)</p>
<p>I've also had a computer with internet access since 1995 when I got one of the first pentium machines.</p>
<p>LIVE WAY BELOW YOUR MEANS. I did this even when I was making 30K a year. You'd be surprised how much of what people spend $$ on is a "want" vs a "need"</p>
<p>Once thing my son never had was the latest video game console, but he had free computer games (dl from the internet) since the age of 5</p>
<p>If we lived any more under our means, we might just jump off a bridge as well. </p>
<p>Bottom line, a "prestige" name costs a lot and it is to each himself to find the justification.</p>
<p>To Calmom, yes, DD already got into OSU and should have some merit$$ there from NMF plus excellent stats. </p>
<p>Right now, her #1 is the environmental science and policy program at Duke. In case she gets in, I will be glad to pay whatever it takes.</p>
<p>DADII: You are jumping ahead. For the next few weeks we are supposed to see threads about the horrors of FAFSA and EFC. The "is it worth it" discussions are not supposed to happen until after the acceptances start to roll in. You are need to follow the natural progression and get used to the pain a little at a time.</p>
<p>I think H and I are going to finish getting our dental work done before year end. . . I will never have the $ again. (Crown and bridge are hardly luxury items) :(</p>