College Financial Aid Question

[Amy]

DS16 is in 11th grade and his high school had a financial aid seminar last night. The speaker was a fin. aid officer from a PA state university, and he was very informative. Kind of depressing, seeing how much debt our kids will end up with, but I guess that's the norm these days. And as usual, after I digested everything I heard last night, this morning I have a question.

He said that when you fill out the FAFSA and all those other forms, they look at your family size, age of older parent, income and "liquid" assets - savings, stock, bonds, etc., and not home equity or money in IRA's. So I assume that after you fill out the form, they'll basically run a credit check on your social security numbers to double-check the amounts you've entered, right?

Well, after my mom died last year, my dad added my name and my brother's name to his bank accounts (dad is listed first, then me then my brother). We figured this way if anything happened to my dad, we'd be able to access his money to pay bills, etc. without any hassle. I don't make any deposits to this account and I don't write any checks, although I could if I had to.

My question: will the money in my dad's bank accounts be counted as part of OUR assets since my name is on the account? He's got way more money than DH and I, and I don't want to jeopardize DS's financial aid because of it.

Thanks in advance!

 

[AnnaS]

Amy, not sure if I can help here - I hope someone can. Isn't the account under your Dad's social security number though? and he is the one who gets the interest and claims it on his taxes? If that is the case, I would not count it with my total. Again, if someone here can't help, I would ask your personal accountant and/or a bank advisor.

I have found that unless you have absolutely nothing - 0 - we get no help at all. But - hopefully your child may qualify either for aid/grant or a scholarship.

Good luck with college and the fasfa form.

 

[golfgal]

I guess I didn't realize they ran a credit check. Even if they do pull your credit history, which would make no difference on the forms if they did, your banking information isn't on there. The only thing that would show up on a credit report would be how much you owe on your mortgage. I don't know how they verify the information on the forms other then through your tax returns.

I know that for the farmers, farm assets are not taken into consideration for FFA forms. I DOUBT that you being listed on a bank account will be taken into consideration because it isn't your money, it is your father's money. You being on the account just means you can handle bank transactions for him really. I am pretty sure that my dad was listed on my grandpa's account when I went to college and I don't remember including that information at all, but that was a long time ago.

As for debt, we figured it out the other day with some friends, their dd graduated last spring and the % of her debt compared to her starting salary out of college was the same as our debt coming out of college vs our starting salaries 20 years ago. It SOUNDS a lot worse because the dollar amount is higher. We actually had a bit more debt by % then she does.

 

[msdznyduck]

I have the same situation.........I never even thought about it, since my mom's money is not mine to spend on us. (It is her money for her bills, and what she needs---I just help her get it done, correctly and on time) Anyway, even without claiming her money, we did not qualify for anything. According to FAFSA, we are rich... and don't need the money.

Good luck with your FAFSA........I also have a DD who is a junior in HS, as well as DS who is a freshman in college. My only hope is when we fill out DD's FAFSA, they do take into account that you have another child in college.

You may also need to be named (or your brother) Power of Attorney over your dad, just in case you do need to write checks, deposit or withdraw money from his account. My mom did this about 10 years ago (without telling me), and now that we need to do most of her banking, etc. for her, that was one step we didn't have to take. I needed to show proof of POA at her bank to deposit money in her account, as well as withdraw money for her to have at her house for medicine, groceries, etc.

 

[trip]

Good luck with your FAFSA........I also have a DD who is a junior in HS, as well as DS who is a freshman in college. My only hope is when we fill out DD's FAFSA, they do take into account that you have another child in college.

I believe that the EFC (Expected Family Contribution) is divided by how many children you have in college. Example - if the EFC is 20,000 for one, then it would be 10,000 for each if you have two in school.

 

[meeskamouska]

I don't believe they run a credit check to check your information....it has more to do with your taxes and tax records. So if you are not claiming anything on this money I would not consider it. I am not positive but I use financial aid and have never seen anything on my credit report about them using it.

 

[Amy]

Thanks! I know he said something about filling out your tax returns early so you can fill out the FAFSA by the deadline. And you're probably right - my dad is the one who claims the interest from his bank accounts on his taxes, not me, so we don't put anything about his accounts on our taxes. He just threw so much info at us last night, and my head is still swimming!

trip is correct (I DO remember this from last night's seminar) - the expected family contribution IS divided by how many kids you have in college. So if they think you can contribute $10,000 and you have 2 kids in college, they figure you'll contribute $5,000 for each kid.

 

[Hedy]

Also, depending on where you're looking, they may require their own apps, or the CSS profile, which often cover more of the "it depends" information.

 

[Amy]

And one of the colleges DS might be interested in is an "independent" college - they accept absolutely NO federal funding, and they won't admit your child if they find out you're getting any kind of federal-backed financial aid. So you're basically relying on their own financial aid (endowments, etc.). After we do all our college tours this spring, it'll be interesting to see how this school's financial aid compares to all the federal stuff.

Of course, we're probably considered "too rich" to get ANY kind of aid anyway, unless DS can get some scholarships. I told DH our best bet to get aid is for us to get divorced, I get full custody of the boys and then the income they'll consider is my part-time income. As if we can afford to maintain 2 households!!

 

[tar heel]

You'll probably be amazed by your expected family contribution. Ours is more than a year at an NC state university costs.

 

[Hedy]

And one of the colleges DS might be interested in is an "independent" college - they accept absolutely NO federal funding, and they won't admit your child if they find out you're getting any kind of federal-backed financial aid. So you're basically relying on their own financial aid (endowments, etc.). After we do all our college tours this spring, it'll be interesting to see how this school's financial aid compares to all the federal stuff.

Of course, we're probably considered "too rich" to get ANY kind of aid anyway, unless DS can get some scholarships. I told DH our best bet to get aid is for us to get divorced, I get full custody of the boys and then the income they'll consider is my part-time income. As if we can afford to maintain 2 households!!

Independant college? Wow, I did a lot of research into fin aid and applying, but I never heard of that.

 

[tar heel]

I would be very wary of the "independent" college and really check accreditation and how the degree is perceived. I've never heard of that either. I do know that unaccredited schools' students are ineligible for federal aid.

 

[Amy]

I spent more time on this independent college's website, and found out that although they don't accept any FEDERAL money, they WILL accept kids who get STATE aid. Here's some info from their website:

The College does not accept any direct or indirect Federal financial aid.

Because ***** College does not accept, nor does it certify, any loans under the Federal Family Education Loan Program (Stafford and Parent PLUS Loans) students must select private, alternative loans, which are available from most lenders, in order to borrow.

And under the FAQ's for financial aid:

Because ***** College does not accept Federal aid, is there a list of aid that is not accepted?

***** College does not accept nor does it certify the following--any loans under the Federal Family Education Loan Program (Stafford and Parent PLUS Loans); Pell Grants; Robert C. Byrd Honors Scholarships; President's Service Challenge Scholarship through the Corporation for National and Community Service (also known as AmeriCorps Scholarship); Paul Douglas Teacher Scholarships; National Science Scholars Program Scholarships; National Academy of Science, Space and Technology Grants; Presidential Access Scholarships; ROTC Scholarships; educational benefits from the Department of Veterans Affairs; assistance through the Office of Health and Human Services (such as grants from the Office of Vocational Rehabilitation or Blindness and Visual Services); JTPA; or any other scholarships or loans that may be construed as providing direct or indirect federal aid to the College. The College also not not allow any student to register for classes if it is aware that a student has accepted or received such federal financial aid for that semester.

And this is a pretty decent school in Western PA, well-respected.

Boy, getting my oldest DS into college is definitely going to give ME an education!

 

[golfgal]

I spent more time on this independent college's website, and found out that although they don't accept any FEDERAL money, they WILL accept kids who get STATE aid. Here's some info from their website:



And under the FAQ's for financial aid:


And this is a pretty decent school in Western PA, well-respected.

Boy, getting my oldest DS into college is definitely going to give ME an education!

Boy, while it might be well respected, the not accepting federal financial aid is interesting and I also agree that I would check into their accreditation status.

 

[MsLeFever]

FYI for what it's worth and appros of nothing...

If your son is looking at Robert Morris let me know - I teach there!

 

[The Mystery Machine]

You can go to the site and read it....I have it printed out.
It is confusing...I can't say for sure if you have to include it.
http://www.fafsa.ed.gov/complete001.htm

 

[Snowysmom]

I don't believe the FAFSA runs a credit check. It is interesting to see how much they think you can afford to pay for college (EFC.) Each year I just shake my head and know why so many students their parents are in deep debt. If you have to fill out the CSS Profile too, that will ask for additional info that gets a bit more intrusive (house value, etc.) Filing for financial aid is so much fun! In January I get to do it for 2!

 

[Pam]

FYI for what it's worth and appros of nothing...

If your son is looking at Robert Morris let me know - I teach there!

Hey MsLeFever,
My son is a senior in high school and while he's not applying to Robert Morris, a couple of his friends are!

He has already applied to and been accepted at Waynesburg and Mercyhurst and just sent his application to Washington and Jefferson. He may also apply to Duquesne.

We also have a daughter who is a Junior at Pitt. Financial aid for the middle-class is a huge joke.

 

[christineann]

Many private colleges have great endowment funds. At one of the private college open houses here in SC, we were told that the tuition is approximately $32,000, and the average financial aid package from the school is over $20,000. The private colleges we visited do have the Palmetto and Life scholarships, which are the lottery funded awards, just as the public colleges do. Private colleges are still worth considering in spite of the costs. It is quite amazing though, that as a paralegal and single mother of two kids with no financial assistance from the ex, I earned too much to get a Pell Grant until I had two kids in college

For several years, I filled out the high school version of FAFSA, which is a Princeton program, for our high school. It was a LOT tougher than the college one - the questions were much more detailed and also included social clubs/organizations and dues, how much you spent on vacation last year, etc. (What's a vacation?)

FWIW, both my kids attend a public university in NC.

 

[Amy]

Thanks for all the replies! Barbara - no, my son is interested in some type of engineering, so Robert Morris is out. Pam, Pitt is on his list, but I'd rather send him to Pitt-Johnstown rather than Oakland; is your daughter on the Oakland campus?

I figure we probably won't get any financial aid, but we still have to fill out all the paperwork anyway. I think what I'll do is fill out a FAFSA in Jan/Feb 2007 (when it won't count since DS is only in 11th grade) just to see what kind of info I'll need for the following year when it WILL count and we'll have to submit it. There's a website, finaid.com, that the speaker at the seminar recommended; looks like they have a calculator that asks for the same info as the FAFSA and gives you some idea of the EFC and what, if any, aid you can hope for.

I hate being middle class; you make too much money to qualify for aid, and yet you don't make enough so you don't have to worry so much about paying for college.