| idic5,
I agree with you - we need to speak up and ask for "truth" in FinAid. Just as the fed gov has standardized the calculation of HS dropout rates, FinAid data should be standardized in reporting, so we can compare collegeboard data accurately. As an example, my d received offers of "aid" - a $ 3500 Stafford loan - unsubsidized. Now that school can count her as one more student who receives Financial Aid, so their numbers look better. They can say that 80 % of their students get packages. I realize that that is a small loan - but that's the point. If a high income kid takes out a small loan - they're a fin aid recipient for the purposes of the college's reporting - which is a little misleading.
Also, colleges who use institutional methodology should be limited in the number of years they can add back in retirement contributions to SEP IRA & 401Ks back into the income. Most schools add the yearly contributions which are taken from current income back into the AGI. So to them, you have an additional $ 15,000 available for school. The reality is that many people are in their catch up years (age 50+) or have multiple kids going through college for a number of years. WIth no traditional pension plan, our family cannot give up 8 years of 401K contributions.
Sorry for the long post - but these 2 issues really frustrate me. Don't even talk about institutional methodology for including home equity as an available asset, with no protected amount. The days of 100 % LTV are long gone !! |