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Parents income less than 1000$

HelpChristianityHelpChristianity Registered User Posts: 77 Junior Member
edited September 2012 in Harvard University
Hey,

There is any problem if my parents income declared per year is less than 1000$. My parents' company worth more than 1.5 million dollars.
Post edited by HelpChristianity on

Replies to: Parents income less than 1000$

  • notjoenotjoe Registered User Posts: 1,181 Senior Member
    If your parents show business assets of $1.5 million and you apply for financial aid, my guess is that you will receive little or no financial aid. If you use Harvard's net price calculator (google "harvard net price calculator) and you play around with it, you'll see that for folks even with no income, financial aid moves to 0 just about at around $1.5 million in assets.

    If there are some special reasons why your parents are unable to convert some of their assets to pay for your tuition, the folks in financial aid will listen to them, but my own best guess is that circumstances would need to be very unusual to obtain much, if any aid.
  • T26E4T26E4 Registered User Posts: 24,274 Senior Member
    Harvard's own finances didn't grow to its stature because it's populated by dummies. Of course they would view "low income, huge assets" and treat it accordingly. What would you do if you sat in the H FinAid office and a file came in with those facts? How would you treat it fairly?

    US$1.5 in assets probably gets you little to no aid.
  • HelpChristianityHelpChristianity Registered User Posts: 77 Junior Member
    But their income per year is less than 1000$
  • stemitstemit Registered User Posts: 575 Member
    The Ivyies "untangle" complicated incomes. I know that Yale really tries to look at your cash flow in addition to countable assets (not retirement, personal residence, and the actual value of a small business).

    Your parents' AGI may or may not be the number that a school will use in determining FA. If, for example, your AGI is based solely on a W-2 that is one possibility. On the other hand, if the AGI is based upon the ability of a small business owner to manipulate costs and revenues, a FA number will be totally different. Add in countable assets, and the FA may dwindle into nothing.

    While the IVYies FA are indeed the best of all colleges, FA is in most cases less then their PR trumpets.
  • T26E4T26E4 Registered User Posts: 24,274 Senior Member
    "But their income per year is less than 1000$ " Since I'm not a H Fin Aid officer and you haven't applied, why are we arguing?

    I assume you're not suggesting that H ignores the US$1.5 million in assets. "income" can be manipulated in a variety of ways. H will pore over everything and tell you what it thinks is fair -- that is if you get accepted.

    Just report back what they tell you next April.
  • gibbygibby Registered User Posts: 10,421 Senior Member
    http://isites.harvard.edu/fs/docs/icb.topic551531.files/BusinessFarm%20Supplement.pdf

    Colleges understand that many business owners have their company pay for housing, food, cars etc. That's why Harvard asks for so much information on your family's business in the form above. Any college will look at your family's business assets and see that if your parents DECLARED less than $1,000 in income, but have a business that is worth 1.5 million, then they can afford to send you to college without financial aid.
  • T26E4T26E4 Registered User Posts: 24,274 Senior Member
    HC: given that you're not in the USA, you'll also have more financial reporting requirements as well (such as demonstrating you'll be able to pay for four years). You should get started now investigating all the additional documentation you'll need to provide
  • gibbygibby Registered User Posts: 10,421 Senior Member
  • notjoenotjoe Registered User Posts: 1,181 Senior Member
    "But their income per year is less than 1000$"

    If your parents truly have business ASSETS of $1.5 million, it will be difficult to obtain financial aid.

    Here's a link to their net price calculator:

    Net Price Calculator

    Put in $0 for income and $1.5 million for "Business/Farm Equity." See what result you get.

    Now, just as there are different ways to categorize income, there are also different ways to categorize business equity. There's book value, there's market value, there's the value of a business' cash flow. If you're saying, "If my parents sold their business, maybe they'd get about a million and a half dollars," that's different from saying, "My parents have real estate, equipment, receivables and cash that, net of any business debt, equal $1.5 million."

    If you're saying the first thing, your parents might make the point that the business is not a liquid asset, that they can't convert a modest portion of it to pay for your college, and that they're currently not in a position to sell it entirely.

    But if you're saying the second thing, then the school may say, "Well, you have a bunch of assets - sell or liquidate a small portion of them to provide for your child."

    In any event, Harvard isn't going to ignore a seven-figure asset when determining financial aid.
This discussion has been closed.