chrisrb

mom2collegekids:

Unfortunately, our daughter is a freshman this year, so she's got three more aid packages in her future. Next year's aid package should still be pretty good, I think, since it'll be based on 2012 tax returns, which won't show that big an increase in income.

My main worry (though this is a good problem to have, certainly) is if the new work my wife is doing lasts more than another year or so (she's now a weekend 24-hour home care aid to a 97-year-old cancer patient, making much better than average wages, in addition to the housework she's done for various clients for years) AND my own business picks up, we could well have one or two very bad aid packages to contend with.

In keeping with the behavior of possible future presidents and good ol' American values, I'm trying to find a way to pay as little as possible while getting as much as possible, within the rules.

As long as we have the extra income, we'll probably be all right, in any case ... unless one of us is hit with another emergency surgery or some other major medical problem before we're able to find a health insurance company that 1. will insure us at all, given our pre-existing conditions, and 2. won't send us to the edge of bankruptcy (or over it) despite the increase in income (have you priced insurance on the private market for two self-employed adults aged 40 and 55 with pre-existing conditions, lately?).

At least now I know to scratch the "independent student" idea off the list ... which, though disappointing, is actually very helpful, which is why I like CC.

cptofthehouse

Chrisb, play around with the NPC for the particular college. You can get a better idea as to how much more you will be required to pay. If your daughter's college is one that guarantees to meet full need, and is generous that way, the increases in your income may well be affordable and fair increases in cost. ALso, if those parts of expenses attributable to medical costs should be submitted as they can be taken into consideration.

The way present rules are for FAFSA if there is another job crisis with signifcant loss of income or loss of job, that can be reported and dealt with under the "displaced worker" provisions, along with any medical issues that arise. All of that has to be dealt with on a personal basis through professional judgement of the financial aid officers of that school. It would be a good idea to establish a relationship with them on the part of your daughter. I was on generous aid while in college, and the financial aid office knew me well. I made sure of that. If any goodie made its way there, I was first in line and on their minds if I were eligible for it.

mom2collegekids

As you say, your D's FA pkg should be good for soph year.

If the FA pkg is bad for junior year, then she might want to consider asking the school for a gap year. She could work and do some volunteer work or something related to her major during that year. She can earn about $6k that year without affecting aid for the next year.

Then during that gap year, you could set some money aside in case the year she returns also has a higher family contribution.

Again, this may all be for naught. If you can show lots of medical payments, then the school may still give great aid. You need to talk to them about this.

thumper1

Remember that if your student wants to take a year off at any point in time, they should request a leave of absence from their school. This would mean that they would not need to reapply for admissions.

Also, if your student is receiving any merit aid, you need to find out if that will be still be available to them if a leave of absence is taken.

Don't just take a "gap year" without getting those questions answered.

CTScoutmom

Chrisb, just something to keep in mind, along the lines of what is said over and over to those of us whose regular income is in the range you expect for 2013. Would you rather not have the income? This is not meant to be rude, and I hope it doesn't come across that way, but if your wife had not chosen to accept this job, you would not have this "issue" with the possibility of facing a higher EFC. I will face that higher EFC with my 3 children over the next 11 years (there will be one year with 2 in school).

A higher income means your daughter will pay a higher share of her cost of attendance, but not any higher than someone who has had that same family income for the past 10 years. Which would you rather be? The family that has lived on $40,000 and now has an extra $50,000 to split with the college, or the family that has only learned to get by on the full $90,000 and will have to figure out what to cut to afford the $25,000 they are expected to pay to the college?

My advice would be to continue to live as if you made $40,000 and save as much of the rest as you can. You're both self-employed, so you are familiar with the way your taxes are calculated - with that increased "income" will come increased expenses, so your net income will not increase as much as you are expecting, and you will not be expected to contribute all of it.

mom2collegekids

Thanks Thumper...the better language is asking for a "leave of absence". Yes, when I said "gap year", I meant "leave of absence" that has been carefully coordinated with the school for a smooth return.

emeraldkity4

My advice would be to continue to live as if you made $40,000 and save as much of the rest as you can. You're both self-employed, so you are familiar with the way your taxes are calculated - with that increased "income" will come increased expenses, so your net income will not increase as much as you are expecting, and you will not be expected to contribute all of it.

I think that is a good idea.
I know Wesleyan meets full need, but that also includes forms besides FAFSA, and those who are self employed often have to pay a big chunk.
It would be a good idea to inquire about how your expectations will change with increased income so you don't have a big surprise next spring incase she needs to transfer.

IMO finding medical insurance would take priority over paying for an expensive private college, but I can see how " free" would be pretty attractive, even if that was only for a year.
I'm assuming your daughter has insurance through college?
You might consider enrolling in a class or two at a community college, they often have group insurance that disregards pre existing conditions, as do some other affiliations.

sylvan8798

I'm totally failing to see your issue here. You were marching through life on $40K/year, during which time you managed to get a $75K operation despite not being insured or able to pay for it, and your daughter is on "very generous" financial aid at Wesleyan. Presumably you also have a roof over your heads. At what point do/did you "only get to have one of these"?

If your wife's extra income is going to be such a negative, perhaps you want to let someone else have that client?

emeraldkity4

As for having to choose, in this country, between health care, education, and a roof over one's head

We have free public education for all from 1st-12th grades, Not all countries can say the same. I agree we need better health care and affordable housing, but some of us have chosen to work for employers who offer health care, even if that means we need to live in areas with higher costs of living.

We are all adults, we recognize that our choices either limit or expand future choices.
Don't we?

cptofthehouse

It's the same old story when you get a windfall, the needs seem to eat it up faster than it can make a dent in your lifestyle. It's just the way it works. I remember a friend of mine whose many kids qualified for free lunch for a few years at their schools. I don't think she was happy in the least to qualify; it embarrassed her greatly. But when the day came that she was out of that category, the reality of having to make all of those lunches, and make sure the kids got breakfast at home hit awfully hard. The free lunch program meant not having to think of those meals on school days as it included a breakfast in the morning as well. Coughing up the money and having to deal with that aspect of life that was covered for a couple of years, was painful

It's tough and counter intuitive to feel grateful for the privilege of paying for something you were already getting without payment. Even when that means that there is that blessing of extra funds.

sybbie719

Hi Chris,

You must also realize that even if your child should "become independent" (highly unlikely) on the FAFSA, it does not automatically mean that she would be considered independent as far as the institutional aid (the biggest part of your financial aid package) is concerned.

At the majority of schools that give their own institutional aid, if you start as a dependent student, you finish as a dependent student, even if you meet one of the criteria on the FAFSA that makes you an independent student.

Your child attends Wesleyan. They specifically state the following:

So even on the way off, chance that your daughter would "become independent", Wes will still give their money based on your family's income/assets.

cptofthehouse

As for health insurance and the way health care works in this country, all I can say about that is it's a quagmire of its own. Sometimes you are better off without insurance. My son who has little in the way of income, truly poverty level as an auditioning actor is on our health insurance. That means, the deductibles and limitaions on coverage have to be paid anytime he has a medical need. He could get the same treatment for free, if he didn't have the insurance! Yes, I double checked when he got the bill for his hand injury. Because of the insurance, he doesn't qualify for medicaid or for any relief based on his non income. But the deductibles and reasonalbe and customary limits as well as the copay, make this a hefty bill for anyone. Crazy? Yes, but that is the way it works.

KKmama

cptofthehouse,
Who would have treated your son "for free"? I ask this because hospitals are required only to treat life-threatening conditions. Having my daughter in a similar situation I can say that we could not find anyone in her part of Wisconsin (at that time) willing to take her on for therapy after her ankle surgery (surgery was pre-loss of insurance but recovery came after).

dodgersmom

KKmama -

If your daughter qualified for Medicaid, she would have been eligible for treatment with any provider who accepted Medicaid.

And, in many locations, hospitals will provide reduced-cost services for low-income patients.

cptofthehouse

A reason we will pay for our son's insurance if he cannot, is because certain conditions are difficult to get treated without insurance; what is considered elective,like your daughter's ankle surger. My son cut up his hand and, was treated as a non pay as he identified himself as such, since he did not have his insurance information with him and did not want to bother us. He was treated and was asked to complete a form for Medicaid/state funds for indigent care. At that point, he said he had insurance, and that is how we all know. Though he was no where close to being in life threatening condition, he was treated as are many who enter the hospital through the emergency room. His bill came to about $5K with about 75% of it covered by our insurance, part of it through luck that the surgeon who was used happened to be in our network. The hospital was not but had to be so treated as it was an emergency admittance. To get the cost down to that figure required a lot of time wrangling with the insurance company, something a lot of people, sadly my son included would not do.

Now if his hand were not quite right thereafter and needed extra work, how the hospitals would treat that if he didn't have insurance, I don't know. Another son was operated on for a broken nose for "free", again with charges when it came to light that he had insurance. That one, was a misunderstanding on the admittance clerk's part as he did tell them he had insurance. A lot of discussion t get that covered as well since it was all done out of network. But, yes, it would have been "on the house" had he not had insurance. The hospital so much told me when I was on the phone with them.

But a friend of ours son could not get elective cranial facial surgery needed from issues when he was a child when he was without insurance. With Obamacare, he was able to be put on his parent's insurance for the one remaining year he could due to age, and got this very expensive surgery done. But most other medical care he got with no problem for free while he was uninsured. ANd the hospitals and doctors who did the surgery are now stuck still treating him and writing anything off that he can't pay (and he can't pay much or anything) involving what was done.

Personally, I believe that health insurance is imperative and I will go in debt and go without a lot to make sure my immediate family members are covered with what I deem a decent policy. But family members and friends don't look at it the same way. As far as I am concerned the insurance requirement that Obama care is shifting some of payment for services that those who would be uninsured if they could be onto them that the government and the hospital has been picking up. Whatever this Obama care costs is paid for in part by this shift.