Same college, different price!

[leahjade]

My friend and my neighbor both have kids starting at the same private college in the fall. However, their tuition bills are VERY different. My neighbor filed for bankruptcy, has had all kinds of credit card issues and only works occasionally (his wife has never worked -even though her kids are grown). They got all kinds of financial aid and their bill was only $2000. My friend - both her and her husband work 2 jobs and have saved since their son was born for him to go to college - got NO aid and their bill for the same school is $30,000. It used to be that you were rewarded in this country for hard work and frugality - that is no longer the case at all!

 

[msmayor]

Financial aid isn't a reward for saving. If the other parents have been diligently saving for college and working two jobs then there is LESS of a need for financial aid.

And don't assume that all aid is "free". An awful lot of aid is in the form of loans that need to be paid back.

 

[SDSorority]

Not in the private school world.

Unfortunately, 'need based aid' doesn't take into account WHY there is need.

I work in college admission at a private college and BELIEVE ME, it makes me absolutely crazy. I had loans out the wazoo when I graduated from college, yet many of my friends did not.

 

[SDSorority]

Financial aid isn't a reward for saving. If the other parents have been diligently saving for college and working two jobs then there is LESS of a need for financial aid.

And don't assume that all aid is "free". An awful lot of aid is in the form of loans that need to be paid back.

agreed.

 

[leahjade]

But it seems like my friend is being punished for doing the right thing and working hard and saving for her son's college education. Her extra income is used against her for getting grants where my neighbor works only sporadically and his wife doesn't work at all. They have never saved a cent for their child yet they are rewarded with a huge financial aid package. Of course, they NEED more help because they have never been responsible or worked hard in their lives.

 

[Daddy_of_Princesses]

It's no different than people who bought houses they couldn't afford, and now are getting their payments, heck even the loan amounts lowered. Meanwhile, I am living in a house I can afford, but wouldn't be able to get my rate or loan amount lowered.

 

[patsal]

But it seems like my friend is being punished for doing the right thing and working hard and saving for her son's college education. Her extra income is used against her for getting grants where my neighbor works only sporadically and his wife doesn't work at all. They have never saved a cent for their child yet they are rewarded with a huge financial aid package. Of course, they NEED more help because they have never been responsible or worked hard in their lives.

Yes, in this country it doesn't pay to save for college, to work hard or to be sucessful in some ways...of course I jest a bit here. My sister who has nothing, saves nothing and still "rents" from my mother gets 100% of her son's tuition paid off in the form of grants...no loans either, the financial need is high...I on the other hand get to spend $28,000 per year. Needs based help is a catch 22, of course you need more help when you never got off your butt to help yourself...end of rant!

 

[maggiew]

My friend and my neighbor both have kids starting at the same private college in the fall. However, their tuition bills are VERY different. My neighbor filed for bankruptcy, has had all kinds of credit card issues and only works occasionally (his wife has never worked -even though her kids are grown). They got all kinds of financial aid and their bill was only $2000. My friend - both her and her husband work 2 jobs and have saved since their son was born for him to go to college - got NO aid and their bill for the same school is $30,000. It used to be that you were rewarded in this country for hard work and frugality - that is no longer the case at all!

I feel your pain. Believe me because I have a daughter starting college this fall and we just got the bill.

However, we must keep in mind that some of the "financial aid" for the one family might be in the form of loans.

Maggie

 

[Sadie22]

Could some of the aid have been in the form of grants awarded for academic performance? There are a lot of scholarships out there through employers, corporations, and alumni which are awarded based on grades, test scores, membership in particular organizations, and so on, or a combination of academics and need. Academic scholarships may be available to upperclassmen as well as freshmen, so it's good to keep looking and applying for them even after the student has enrolled.

In some families there's a rush for a child to get a car and a job to pay for the car, rather than the necessary emphasis on the academics and activities which will pay off in college scholarships.

 

[DawnM]

We have found that to afford private colleges, you either need to be really rich or really poor. We are neither.

Dawn

 

[CTdiznymom]

It isn't until you are applying for college that you find out how "rich" the government thinks you are.

 

[A Mickeyfan]

We have found that to afford private colleges, you either need to be really rich or really poor. We are neither.

Dawn

You said it! We get nothing for my DD. She works to help us pay for it. I purchased savings bonds for collage use for my kids several years back. However when I purchased, I was under the impression they had to be held for 11 years (as they use to be), well found out it is 18 years!!! By that time, she will be finished college. We have the money, just can't touch it yet So we scrimp & she helps as we pay thru the nose...

on the same token, she will have a nice down payment for her first house thanks to the bonds....

 

[lisabarr]

You said it! We get nothing for my DD. She works to help us pay for it. I purchased savings bonds for collage use for my kids several years back. However when I purchased, I was under the impression they had to be held for 11 years (as they use to be), well found out it is 18 years!!! By that time, she will be finished college. We have the money, just can't touch it yet So we scrimp & she helps as we pay thru the nose...

on the same token, she will have a nice down payment for her first house thanks to the bonds....

Well, you can cash them in. You will get what you paid for them plus whatever interest you have earned. THere is no penalty for casing them in early.

 

[Brian Noble]

My folks saved hard for my college, and didn't get a dime in aid. Many of my friends weren't in the same position, and had some aid, work-study positions, and loans.

I used to worry about the inequality of that, until I used my leftover college fund for the downpayment on my first house, while my friends were still eating ramen and paying off those loans. Now I worry a lot less, and am funding my kids' 529s every year like clockwork. Graduating loan-free was the best gift my parents ever gave me, and I thank them for it every chance I get.

 

[RitaE]

Financial aid isn't a reward for saving. If the other parents have been diligently saving for college and working two jobs then there is LESS of a need for financial aid.

And don't assume that all aid is "free". An awful lot of aid is in the form of loans that need to be paid back.

Oh, I do believe the OP is saying that the Financial Aid system is designed to reward NOT saving. And to an extent it certainly is.

Let's take two girls age 10 with parents of equal income who both inherit a $10,000 gift. Parents A save the $10,000 while Parents B blow it on the mother of all Disney trips.

In 10 years time when it comes time to apply for Financial aid, parents A have their expected family contribution roughly increased by the $10,000 in savings while parents B will receive a larger award. So in effect, parents B get to have their cake and eat it too .. they got to go to Disney AND they get more financial aid. Now the Aid could be loans, but at some Private schools maybe not.

In effect everybody knows this weakness of the system - there are even specialists who will help you shelter your savings and assets so that they won't ding you when it comes time to apply for your grants. But nobody really ever does anything to address the inequity - so it is what it is.

I try hard not to be bitter, sometimes I almost get there.

 

[HappyDznyCamper]

The price of college is the same, the financial aid packages seem to be different. Not all financial aid is based on need either, my DD has more than $4000 in academic based scholarships. So unless you know for sure what type of financial aid packages each student has, you really don't know, what are loans, what are grants, what is need based and what is performance based. The kid with the "small" bill may be academically or athletically gifted, while the student with the "big" bill may be an average student.

 

[kamik86]

Although some may have been loans and merit based your right some probably was need based.

I know I got 6000 a year in a need based grant for school. There was no merit attached to that one. However I got 11,000 in merit based financial aid plus a few small scholarships that paid directly to me, so working hard does pay off, its just the students not the parents that need to do the work.

 

[FoodLover]

My parents refused to give me any financial help toward college. ("Waste of money - you'll just get married anyway" said my father.) They couldn't have contributed a whole lot anyway, since they never saved and were always in debt!

My home situation was dire so I moved out at age 17 and worked for a year. The following year I was fortunate enough to receive a lot of student aid from a prestigious private college (partly based on "merit" and partly on need). I worked two jobs and took out massive loans, but I got through both college and grad school. I struggled for years and finally finished paying back the loans more than 10 years after graduating.

Now I'm fortunate enough to be in a position to endow a scholarship at my alma mater, which I am designating for students who have financial need. I don't care if their parents are shirkers. I only care that a deserving kid gets an opportunity.

 

[HappyDznyCamper]

My parents refused to give me any financial help toward college. ("Waste of money - you'll just get married anyway" said my father.) They couldn't have contributed a whole lot anyway, since they never saved and were always in debt!

My home situation was dire so I moved out at age 17 and worked for a year. The following year I was fortunate enough to receive a lot of student aid from a prestigious private college (partly based on "merit" and partly on need). I worked two jobs and took out massive loans, but I got through both college and grad school. I struggled for years and finally finished paying back the loans more than 10 years after graduating.

Now I'm fortunate enough to be in a position to endow a scholarship at my alma mater, which I am designating for students who have financial need. I don't care if their parents are shirkers. I only care that a deserving kid gets an opportunity.

That, after all is what need based money should be used for, it's really not the kids fault if the parents can't or won't pay.

 

[GoofItUp]

My kids are 1 & 3 yrs. We currently have 529's set up for each of them and deposit enough that they should have ~$65k each by the time they graduate from hs. (Not enough, I know, but it's what we can do for now!) My mom keeps telling me that we are killing our chances for scholarships & financial aid by doing this. Stories like this make me think she's right.

BTW - I went to college on (1) academic & merit-based scholarships (2) savings I had put away while working in college (3) working a PT job while in college and (4) federal grants. While the academic & merit-based scholarships were mostly based on how I had performed, there was always a financial section on those forms, too. It counts EVERYWHERE.