How much do colleges take from your savings?

[timmac]

Any advise on where to find these scholarships?? I never hear anyone getting the ones on the oneline scholarship sites.

Of course you don't... because everyone else is applying for the ones on the online scholarship sites as well... don't even bother with them. For the amount of money many of them are usually worth, compared to even a modest time investment of an hour or two to apply (if there's essays involved, it will be much longer than that).. when you consider your overall odds of winning one, you'd financially be better off, on average, to make minimum wage at a gas station for those few hours. (Yes, I'm being serious)

Stick to local things, or things that are more specialized to a particular niche. Often times some larger local businesses or non-profits may have scholarships to award; with far less competition, there's actually a shot at getting some of them.

 

[lpereira]

Legacy admits to the ivies really only come into play when the family of the legacy admitee can afford to pay the cost of the school. Otherwise you are just one more mouth they have to feed and you will run through the meat grinder process that is used to determine their ideal class.

Go for the free college. Unless its some unaccredited fly by night school there is nothing wrong with it. And plenty to be gained from the freedom to take a job that moves you or travel the world. None of which is possible if you are operating under the yoke of student loans.

 

[disykat]

If she has work study, the school assigns her a job.

.

I think it's more like if she has work study she's eligible to apply. Around here, having work study does NOT guarantee you there will be enough jobs to go around.

 

[bettymae1121]

Honestly, I'd just be upfront with your daughter and tell if that IF she gets into an Ivy, it will depend on the package she is offered. If they offer her a full ride or just a modest and affordable family contribution, then that's fine. If it's going to be big $$$$ to send her to an Ivy, then sorry she needs to go to the free university unless she's willing to take on the loans herself.

 

[punkin]

I think it's more like if she has work study she's eligible to apply. Around here, having work study does NOT guarantee you there will be enough jobs to go around.

I think this is the way it worked in my school (a gazillion years ago). I hope DD gets a job. Last year I was happy she did not work. I wanted her to concentrate on academics. This year, I am happy she will work.

 

[crisi]

The FAFSA people figure you've had this child for 18 years, and college didn't sneak up on you. They don't expect you to have $$$$ extra from this year's paychecks; rather, they expect that you've got a little of the past 18 years of paychecks saved towards that big expense.

An example of "your lack of planning does not constitute my emergency"

 

[perthgirl]

this topic is of interest to me. i am a us citizen living in australia. my dd14 is wanting to go to college in the us (she is also a us citizen) . my questions are:

1. is there a website i could look at that would give me an idea ofmthe application processes for us colleges? we would have to do most of our research online as the cost of visiting usa would eat into the college fund so we wold have to limit the trips.

2. from what i have seen the cost of college incl board etc varies but appears to be in the range of $20-$30k per annum. is this the total we would pay? i am a little confused because i also see something about family contributions. college here is much less vut we currnently pay $20k pa for high school so it wouldn't be that much more of a stretch. but if they take savings as well we are screwed!

who knows if she will actually get there but it is motivating her to work hard and i don't want to shatter the dream. of course then we have to figre out what to study, where to apply, what a gpa is and how to compare to the australian system..... the list goes on!

 

[punkin]

this topic is of interest to me. i am a us citizen living in australia. my dd14 is wanting to go to college in the us (she is also a us citizen) . my questions are:

1. is there a website i could look at that would give me an idea ofmthe application processes for us colleges? we would have to do most of our research online as the cost of visiting usa would eat into the college fund so we wold have to limit the trips.

2. from what i have seen the cost of college incl board etc varies but appears to be in the range of $20-$30k per annum. is this the total we would pay? i am a little confused because i also see something about family contributions. college here is much less vut we currnently pay $20k pa for high school so it wouldn't be that much more of a stretch. but if they take savings as well we are screwed!

who knows if she will actually get there but it is motivating her to work hard and i don't want to shatter the dream. of course then we have to figre out what to study, where to apply, what a gpa is and how to compare to the australian system..... the list goes on!

Collegeconfidential.com is your best bet. I would start off posting your questions on the parents board. They are knowledgeable and friendly.

Also as an international student your financial aid picture will be more complicated, but there is still the possibility of receiving merit aid at some schools.

 

[perthgirl]

brilliant, thanks. now if i could only get my ticker to work.....

 

[krb2g]

I'd be more concerned about your daughter's savings than your savings. Financial aid offices often require students to spend personal money they have at a higher percentage than their parents (i.e. they might assume it's reasonable for a student to contribute 50% of their assets, whereas the parents would have more money and a higher overall contribution, but a lower percentage). My parents saved for my college education (which they ended up not spending because I had a scholarship, but never fear it went to my sister down the road...) in the form of stocks that were not in my name--if those stocks had been in my name, and I had gone to a more expensive school, I would have a higher percentage of loans/less aid in my package.

 

[disneybound31]

Go to this site http://www.finaid.org/calculators/ and see how much you might be expected to pay. If she is looking at Ivy League schools use Institutional Methodology as an approximation of what you might be looking at.

Ivy League schools and many selective university's you will have to fill out the FAFSA and the Profile, the Profile will ask a lot more questions. It is a much more detailed look at your finances.

If she is able to get into an Ivy League school, many of them have very generous financial aid policies. Some schools, (I think Harvard and Yale and Stanford) only require a EFC (Expected Financial Contribution) of 10% of your income up to maybe $150,000. I am trying to remember this from the top of my head. There are also some selective schools that cap your loans at a certain amount and will meet your need without any loans. You must provide your EFC but anything other than that will be in the form of grants not loans.

My D goes to a school which uses the Profile and says that they will meet your need. We have been very happy with the financial aid that she has received. Her school will meet need without loans for people who earn less than $75,000 a year.

Also, I think they will cap savings and home equity up to $150,000. Anything after that, I think the schools expect you to use 35% of. The percentage is more if the money is in the students name.

It's pretty hard to get into a school which has generous financial aid policies. Even great students with super SAT scores and great credentials have a hard time getting into selective schools. I don't know if I would spend all of your savings with the expectation that she will get into the school of her choice. But if it's Ivy League school or the school her father works at, then the decision would be yours.

Could you direct me where to look via the internet to find this Profile? I am interested in looking into it- we will never make more than $75K and DS will be looking into colleges in the next few years...would like to pinpoint those schools that would be the best value and also meet his needs...TIA!

 

[linnylu]

Honestly, I'd just be upfront with your daughter and tell if that IF she gets into an Ivy, it will depend on the package she is offered. If they offer her a full ride or just a modest and affordable family contribution, then that's fine. If it's going to be big $$$$ to send her to an Ivy, then sorry she needs to go to the free university unless she's willing to take on the loans herself.

I have heard a number of people in the past 6 months says this same thing- that their child has to go to such and such school due to the affordability. If they choose a more expensive school then the student is responsible for the loans. The majority of these students have no idea what it means to have loans to pay upon graduation. They have no idea what it costs to live on your own, pay for housing, car, utilities, insurance, food, etc and how tough it is to also pay for loans. I don't care how much you sit them down and put the numbers on paper for them to see, they just don't get it. Not to mention if they don't get a job after college or a good paying job.

That is why I won't give my children the option to attend a school where they will have to take out a lot in loans. There are so many colleges out there that I am sure that they will find one where they are happy and it will be affordable for us- and it probably won't be Ivy League even if they can get in.

 

[MrsPete]

I have heard a number of people in the past 6 months says this same thing- that their child has to go to such and such school due to the affordability. If they choose a more expensive school then the student is responsible for the loans. The majority of these students have no idea what it means to have loans to pay upon graduation. They have no idea what it costs to live on your own, pay for housing, car, utilities, insurance, food, etc and how tough it is to also pay for loans. I don't care how much you sit them down and put the numbers on paper for them to see, they just don't get it. Not to mention if they don't get a job after college or a good paying job.

That is why I won't give my children the option to attend a school where they will have to take out a lot in loans. There are so many colleges out there that I am sure that they will find one where they are happy and it will be affordable for us- and it probably won't be Ivy League even if they can get in.

I agree with you that 18-year olds, although technically adults, don't have the life experience to understand just what they're taking on when they choose student loans. I also agree that with so many options, a student should be able to find something accpetable AND affordable -- I don't believe in the idea that there's one perfect school for your student, while everything else is just crap.

However, if my student were absolutely DETERMINED to attend a more expensive school, I think I'd do two things:

- I'd help her look for non-loan ways to attend that school. Two years somewhere closer to home, then a transfer; going to school part-time; etc.
- I'd encourage her to earn as much as possible NOW rather than borrowing against future earnings; loans should be a last-ditch effort, not the plan for how to pay for college. When faced with the reality of needing to work and save NOW, students are more likely to see the value in going with the more affordable option.

 

[dizkids]

DS will be a freshman so this thread has me thinking ahead. Thanks as usual for all the great tips!

 

[mrspopeye]

I'd be more concerned about your daughter's savings than your savings. Financial aid offices often require students to spend personal money they have at a higher percentage than their parents (i.e. they might assume it's reasonable for a student to contribute 50% of their assets, whereas the parents would have more money and a higher overall contribution, but a lower percentage). My parents saved for my college education (which they ended up not spending because I had a scholarship, but never fear it went to my sister down the road...) in the form of stocks that were not in my name--if those stocks had been in my name, and I had gone to a more expensive school, I would have a higher percentage of loans/less aid in my package.

This is what we were told also by a financial aid officer and is a great piece of information to be aware of. He also hinted that it would be advantageous if the student's savings were in an account under grandma'a name, because the FASFA only looks at the student and parent's ability to contribute.

 

[msmayor]

This is what we were told also by a financial aid officer and is a great piece of information to be aware of. He also hinted that it would be advantageous if the student's savings were in an account under grandma'a name, because the FASFA only looks at the student and parent's ability to contribute.

Please remember, folks, that the intent of FAFSA is ONLY to determine qualification for federal grants and loans. It is NOT going to be a hard number that colleges must use to hand out free aid.

In other words, if your Estimated Family Contribution (EFC) is computed on FAFSA turns out to be, say, $5,000...do NOT assume that is the only amount you will have to come up with to send your child to any college they want.

Schools are not required to fund up to your EFC. In addition, you may find that the 'aid' they provide is all in the form of loans (which is indeed considered aid) only adding to the amount you are expected to pay out of pocket per your FAFSA EFC.

 

[MrsPete]

This is what we were told also by a financial aid officer and is a great piece of information to be aware of. He also hinted that it would be advantageous if the student's savings were in an account under grandma'a name, because the FASFA only looks at the student and parent's ability to contribute.

But they're going to see your tax returns. If they see that you earned $200,000 last year and saved NOTHING, they're not going to be sympathetic.

 

[AZMermaid]

I personally would not be footing the bill for an Ivy if she could go to another school for free. If she wants to go, she can pay. I don't really get it when parents don't expect their children to take any brunt of the responsibility for their college education. It is her education, she should be paying for it. And before this gets flamed, I paid for mine when I went through. Yes, my son (11 months) does have a college fund that will be about 100K when he is ready for college. But, I don't plan on paying anything for him above that.