Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Spendthrifts Get Financial Aid
Old 06-13-2005, 11:24 PM   #21
Full time employment: Posting here.
 
Join Date: Jan 2004
Posts: 844
Re: Spendthrifts Get Financial Aid

Quote:
Originally Posted by bamboogrrrl

If you want to make your EFC (estimated family contribution) look to be less, put any available funds into either paying off your primary residence or into retirement, because the FAFSA doesn't consider these two things to be assets for financial aid purposes...

Does the EFC change if, for example, you had a $500K second home, versus $500K sitting in the bank? Seems once you pay off the house, and max your retirement acct savings, there are limited opportunities to "hide" money from the equation, correct? 9 years to go before the first college bill comes due, but never to early to plan..
__________________

__________________
farmerEd is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Spendthrifts Get Financial Aid
Old 06-14-2005, 04:32 PM   #22
 
Posts: n/a
Re: Spendthrifts Get Financial Aid

Yes, that's a good perspective TK. I generally feel that way too -- I guess that seeing all the other kids getting free candy made me forget that that's how I feel .
__________________
  Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-14-2005, 05:08 PM   #23
Recycles dryer sheets
 
Join Date: Oct 2004
Posts: 325
Re: Spendthrifts Get Financial Aid

I came from a family that was middle class, but had way too many kids. I had help for my frshman year, but after that it was all on my own. Working through college was an education in itself, but compelled me. I went through Soph-Sr. undergrad, graduate school and eventually earned a professional degree on my own earnings. Lived in the low cost dorms at a State University and was happy to have access to three squres at the cafeteria. In a way this is why I am now ER'd...I learned to live on what I earned, and make each coin count.

I have an issue with the Colleges today, as they are awash with cheap money from all these subsidy programs that were originally supposed to help the needy student but end up as a subsidy to an inefficient academic aristocracy. If they had to really compete for customers and judged by the quality of the results they are supposed to deliver most Colleges and Universities would be out of business in a year.
__________________
"TEMPUS FUGIT"
LEX is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-14-2005, 05:10 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: No. California
Posts: 1,600
Re: Spendthrifts Get Financial Aid

Al, you're not alone. We were turned down for financial aid. I made too much, I have too many investments and no debt and my kid has Roth IRA and stock from Grandpa.
So we pay as we go.... He's going to community college and his brother joins him in the fall.
__________________
KB is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-14-2005, 05:14 PM   #25
Full time employment: Posting here.
 
Join Date: Mar 2005
Posts: 557
Re: Spendthrifts Get Financial Aid

Quote:
Originally Posted by TK



When did we (as a society) want to be on a dole.



Tk
Yeah, we paid for our kids' education as well. *Thought that was our responsibility so planned for it, as you, at birth.

I'd like to know myself when we slid into the dole, but it does seem to be a part of the society now. *Maybe had something to do with such waste at the governmental level while the very well off/well connected reaped the benefits.

Its time for this country to have a real leader. *(Yes, yes, I know, but I've been away for a while and just wanted to stir something up). *

Uncledrz
__________________
uncledrz is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-14-2005, 07:29 PM   #26
Recycles dryer sheets
VoyT's Avatar
 
Join Date: Feb 2005
Posts: 445
Re: Spendthrifts Get Financial Aid

* * *I pretty much got a free ride through college ... my mom was widowed, probably never made more than $10,000 a year. (and believe, me, the old man left nothing to work with).
* * *I'm grateful the aid was out there, though more than once I've had the thought that the state paid for my education so I could pay for my kids. (though right now, that's a moot point, as I don't have any )
__________________
"Coffee: the finest organic suspension ever devised." -- Kathryn Janeway
VoyT is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-14-2005, 07:41 PM   #27
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 261
Re: Spendthrifts Get Financial Aid

Quote:
Originally Posted by bamboogrrrl
If you want to make your EFC (estimated family contribution) look to be less, put any available funds into either paying off your primary residence or into retirement, because the FAFSA doesn't consider these two things to be assets for financial aid purposes...
I've heard that if people move assets (temporarily- starting the year before the child's freshman year) into fixed or variable annuities, or life insurance, these assets are considered to be retirement assets and "exempt" from financial aid considerations.

This seems to be the strategy of many college financial aid "planners".

Is this true or false?

Also, at what level of minimal savings (assume a low income as well) would parents not be required to contribute towards any EFC at all? $30,000? More? Less?
__________________
"Against stupidity, God Himself fights in vain."
Art is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-14-2005, 10:44 PM   #28
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Spendthrifts Get Financial Aid

Why not simply provide free college education regardless of income?

Scholarship or grant should be based solely on merits. It should not be based on income otherwise it is called financial aid or assitance.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-15-2005, 12:32 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Re: Spendthrifts Get Financial Aid

Quote:
Originally Posted by Spanky
Why not simply provide free college education regardless of income?
In a nutshell- you have a bright likeable kid, but unfortunately he is white, non-Hispanic and male. Thanks to affirmative action (maybe undercover at this time) your kid goes to Cal Poly, the "minority" from down the block goes to Berkeley. At least if you pay directly and not through taxes, you pay only for your kid, not someone who bumped him on preferences.

USA is more and more like Brazil or other multicultural societies. If you want to see where we are going, look there.

haha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-15-2005, 08:35 AM   #30
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Spendthrifts Get Financial Aid

HAHA,

You have touched on a different issue - college admission. What about Asians? Some cannot get into Cal Berkeley despite excellent grades and SAT/ACT scores because they are "over represented" in the U of Cal system. I agree with you that admission should be based purely on merits and no preference to any group.

Spanky
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-15-2005, 09:11 AM   #31
Dryer sheet aficionado
 
Join Date: Nov 2004
Posts: 32
Re: Spendthrifts Get Financial Aid

FarmerEd: It really wouldn't matter if the $500k was sitting in a second home or in the bank.* They would both be considered an asset.* I wonder if one could start a business and park a good chunk o'change in a Keogh or SEP to squirrel away additional retirement assets.* Or stick that $$ in your freezer!

Art: It's difficult to say at what point one's EFC would be considered zero because the formulas are so intricate.* But the basic idea is to not have cash/assets hanging around.* They are looking at income AND dependents.

Oh, one other thing that can help people qualify for more aid is to show as many householders in college as possible.* I'm not sure how many credits you need to be enrolled for (it might even be three), but showing that you have several family members in college can change the financial aid picture.
__________________
bamboogrrrl is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-15-2005, 07:39 PM   #32
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Re: Spendthrifts Get Financial Aid

Bamboogrrl, the Keogh idea is good, but you cannot contribute more than you make in earned income (which also has to be taxed with self-employment tax -- a double dose of Social Security and Medicare).

I went to Berkeley in the late 70s when in-state tuition cost me $212 per quarter. Things have changed a lot since then.

I am still confused - some people say income matters the most in your Financial Aid profile, others say assets . Is there any guidance on the actual weighting? ERs are likely to have lots of the latter, and little of the fomer.

Trombone Al -- how representative do you think your daughter's situation was? Did you try hard to find scholarships and grants or were there unique circumstances in her case?

Martha, would have loved to hear that commencement exercise speech. Must have been a lot of nervous laughter at Al Franken's quip!
__________________
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)
ESRBob is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-15-2005, 08:36 PM   #33
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Spendthrifts Get Financial Aid

Quote:
Originally Posted by ESRBob
I went to Berkeley in the late 70s when in-state tuition cost me $212 per quarter. Things have changed a lot since then.
I went in 72. Tuition was about $600 per year. Now it is $7433.9. If we assume 5% inflation rate, the adjusted value of $600 would be $3,000. That means that tuition and fee has increased more than 2 times.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-16-2005, 07:46 AM   #34
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Spendthrifts Get Financial Aid

Education is big business. From their perspective, its strictly a money-making deal.
__________________
azanon is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-16-2005, 11:14 AM   #35
Dryer sheet aficionado
 
Join Date: Apr 2004
Posts: 44
Re: Spendthrifts Get Financial Aid

What do you mean by this?



Quote:
Originally Posted by HaHa
USA is more and more like Brazil or other multicultural societies. If you want to see where we are going, look there.

haha
__________________
jefipius is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-16-2005, 11:27 AM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Spendthrifts Get Financial Aid

As with anything, if you apply any sort of protectionism (who goes to school, who you hire, who gets money and who doesnt) it'll get screwed up, protect nobody, and somebody (probably the wrong person) will get the short end of the stick eventually.

All things should be allowed to reach their own tide level.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-16-2005, 11:50 AM   #37
Full time employment: Posting here.
 
Join Date: Jan 2004
Posts: 844
Re: Spendthrifts Get Financial Aid

>>FarmerEd: It really wouldn't matter if the $500k was sitting in a second home or in the bank.

How about parking the money in hard (but hopefully appreciating) assets. I could see where you would need to disclose a second home, but who's to know if you choose to furnish your house with really expensive art and antiques?
__________________
farmerEd is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-16-2005, 01:46 PM   #38
Recycles dryer sheets
newellcr's Avatar
 
Join Date: Aug 2003
Posts: 187
Re: Spendthrifts Get Financial Aid

Hello Folks,

A previous poster turned me onto this site, http://www.finaid.org/calculators/.* I've found it quite useful.* On this page there are a couple of useful calculators that can show approximate EFC.*

Cheers,

Chris
__________________
newellcr is offline   Reply With Quote
Re: Spendthrifts Get Financial Aid
Old 06-16-2005, 03:38 PM   #39
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Re: Spendthrifts Get Financial Aid

Chris,
Thanks for the link.
Now I see why I won't get any finaid for the kids.
12% of net worth each year gets thrown into the hopper, even though most of the annual income is 'protected'.

Oh well. I'd rather be a saver and ER forever than the recipient of bonus awards from schools for 4 years.
__________________

__________________
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)
ESRBob is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Help with Financial Aid Decision TromboneAl Other topics 31 05-20-2007 02:10 PM
Stop working = More college financial aid? LOL! FIRE and Money 60 11-19-2006 01:51 PM
Roth Conversion and Financial Aid TromboneAl FIRE and Money 0 06-27-2005 08:11 AM
College financial aid planning farmerEd Other topics 38 05-05-2005 08:32 PM
College / financial aid farmerEd FIRE and Money 33 01-28-2004 03:16 PM

 

 
All times are GMT -6. The time now is 02:23 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.