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Have money, need aid

dinerodinero Posts: 4Registered User New Member
My dad has plenty of money saved but he says it is for his retirement. How much can he have saved up that would still allow me to potentially get $$ from a school? based on the worksheet his contribution would be enough to pay for the first year of school.
Post edited by dinero on
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Replies to: Have money, need aid

  • annoyingdadannoyingdad Posts: 2,133Registered User Senior Member
    Which worksheet did you go through?

    For government aid through FAFSA, money in formal retirement accounts is not reported. For schools using CSS profile or their own form, it is usually reported but only the schools know how the number is used. Savings for retirement not in formal retirement accounts and general savings is reported for both.

    Is your dad retired now? More important than savings is what his income is.

    Are you a HS senior?

    My general observation is that young folks usually don't have enough life experience to know what constitutes "plenty of money".
  • happymomof1happymomof1 Posts: 19,387Registered User Senior Member
    If you qualify for merit-based aid, your dad could be richer than Bill Gates, and you would still get it.

    If you are a US citizen, permanent resident alien, or fall into one of the special categories that also allow you to file the FAFSA, your dad could be richer than Bill Gates, and you would still qualify to take out a Federal student loan.

    Likewise, if your state has any guaranteed merit-based aid (HOPE, Bright Futures, etc.) you would still get that.

    If when you run the FAFSA calculators, and the college and university Net Price Calculators, you find that you don't qualify for any need-based aid, well then you don't. Remember, for the FAFSA money that is in retirement funds such as a 401(k) or IRA is not included in savings, and is not considered to be available to help pay for college.

    Ask your father how much money he is ready, willing, and able to contribute for your education each year. If it is $0, find out if he is ready, willing, and able to continue to feed and house you while you attend a school that you can commute to and that you can pay for on your own with nothing more than guaranteed merit-based aid, federal loans, and whatever it is you can scrape together out of your own savings and earnings. Just feeding and housing you will save a bundle.
  • SlitheyToveSlitheyTove Posts: 5,878Registered User Senior Member
    dinero, I'm not sure what you mean by "based on the worksheet his contribution would be enough to pay for the first year of school". Does this mean that your dad has given you a total budget of what he is willing to pay for all four years? Or does it mean that you've run a FAFSA estimator of your Expected Family Contribution (EFC), and the number you're getting from that matches what your father's budget is? Keep in mind that the EFC is for each year, not for all four years. The same for any Net Price Calculators that you run for each school.
  • Iron MaidenIron Maiden Posts: 1,838Registered User Senior Member
    Dinero, is this money just in some sort if regular savings account or is it in a 401k or IRA? If it is just in a savings account all schools will treat it as available for use to pay for your school. Your Dad saying it us for retirement won't work.
  • dinerodinero Posts: 4Registered User New Member
    This is not retirement money per se...so it is "available" for the count. I think I am on my own on this...EFC counts for 6% of savings not for retirement. Income redistribution is here and spreading...
  • SlitheyToveSlitheyTove Posts: 5,878Registered User Senior Member
    Income redistribution is here and spreading...

    Hardly. Keep in mind that the vast majority of colleges do not offer huge amounts of financial aid. The exceptions tend to be highly selective schools, which require you to have great stats (GPA and test scores). If you've got that in hand, then there are going to be lots of options for schools that offer merit aid, regardless of income.

    What's your budget per year?
  • dinerodinero Posts: 4Registered User New Member
    My goal wasto go to a highly recognizable, but small school. I want academic rigor but wanted to get something out of it when I am done. I will work as hard as I can but at present, my dad is going to keep what he has - he is older and is planning retirement - so I need to figure it out on my own. I think my best option is to go to a state school, do well and then try to get into a good grad program. Merit will help but from what i have seen from friends, i still need about $20K.
  • lerkinlerkin Posts: 1,428Registered User Senior Member
    20K per year or for all 4 years?
  • sylvan8798sylvan8798 Posts: 4,430Registered User Senior Member
    dinero wrote:
    Income redistribution is here and spreading...
    Seems like a random statement. How is it relevant to your situation?

    What are your stats?
  • Iron MaidenIron Maiden Posts: 1,838Registered User Senior Member
    Very random statement. Isn't all need-based FA "redistribution"?
  • 'rentof2'rentof2 Posts: 4,327Registered User Senior Member
    So it's "redistribution" if financial aid is reserved for those with actual need... but it's not redistribution if the government and the college give aid to Dinero even though his family has resources? That's a head-scratcher.
  • mom2collegekidsmom2collegekids Posts: 62,446Registered User Senior Member
    Since you won't qualify for need based aid, we need more info...

    How much WILL your dad contribute each year towards your college costs?

    What state are you in?

    What is your GPA?

    What are your test scores? Include SAT breakdown.

    What is your intended major.


    Don't limit yourself to a certain type of school...with your situation, you need to be open-minded otherwise you may end up at the local CC or local public univ.
  • Dann36Dann36 Posts: 18Registered User New Member
    You can apply for merit, but I wonder if at that point he'd still need to fill out a FAFSA.
  • Erin's DadErin's Dad Posts: 19,566Super Moderator Senior Member
    For pure merit aid most schools will not require FAFSA to be filed. Some schools do require it for merit, others combine merit and FA so they require it. YMMV based on the school.
  • mom2collegekidsmom2collegekids Posts: 62,446Registered User Senior Member
    My goal wasto go to a highly recognizable, but small school

    You need to be open-minded if you're going to need HUGE merit because your dad won't contribute much (or anything).

    As you've indicated, even if you got a large amount (say $30k/free tuition), you'd still need about $20k per year...and from your post, it sounds like your dad won't pay that $20k.

    Therefore, you need HUGE merit since it sounds like you're going to be covering most/all of the costs that aren't covered by merit. Then you can borrow 5500 for the rest.

    Keep in mind that you can't borrow more than the following amounts without co-signers (and it's doubtful that your dad would jeopardize his money by co-signing big loans).

    5500 frosh
    6500 soph
    7500 jr
    7500 sr

    You need a strategy otherwise you'll end up with no affordable schools.

    how much will dad pay each year?

    what is your GPA?

    What are your test scores , including SAT breakdown?

    How much can you earn over the summer?

    what state are you in?

    What is your major.
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