@kelsmom - It’s much better. Thanks.
Yes. Apparently, a member of the financial aid community questioned the formula, and this was the result. No explanation … just the new information posted.
Yep it’s better. I preferred it a few years ago, but it’s better.
So if I read this material correctly, the amounts of parental assets that are not counted as being available for college expenses are larger than had been proposed a month ago because of a “correction.”
However, the protected assets of parents still seem much lower than had been in effect in recent years? I was used to about $45,000 of protected assets for married parents of about 50 years in age.
Someone once posted the formula for determining the allowance. It’s very complex having to do with the future value of current assets, which is affected by inflation rate, and the formula is affected by the size of social security increases over a past number of years. SS payments didn’t increase at all in 2009 and 2010, then there was a 3.6% increase in 2011 partly to make up for that. I think that year is still affecting the asset allowance formula. Yeah, the allowance has steadily and significantly decreased each year since my son started college in 2010.
So if we went out and blew all our savings on liquor and gambling, the answer from the government is ‘oops’?
The numbers for singles actually went up, not down.
Since this is for the 2016-17 school year, yeah if you blew your savings this early, oops.
It’s better, but still a significant (30%+) drop.
This is absurd. Middle-classers should just start to not disclose their savings…
^^Ummm…no.
Hiding assets from FAFSA would be illegal, but suit yourself.
I just readthe link provided by kelsmom. The first part focuses the age of the OLDER parent…and liats ages from 24-34. I mean really…what college student has a parent who is 24-34 years old?
Did I misread that?
^ I am not saying this is typical in any way but my best friend growing up’s parents had her when they were 15 so when she started college, her mom was 33. (Moot point anyway as she was married since she had her first kid at 17, but I digress…)
If you look though, the asset protection for independent students starts at 25 (or 25 or less) and the parents’ protection limits mirror those for independent students. It seems like a convenience issue rather than anything else.
Right @romanigypsyeyes even your friend would have had parents at the top range of the chart posted.
Seriously…am I reading this incorrectly? @kelsmom
Adoption of a sibling after parental death will result in a 24-34 y/o parent.
I guess I don’t understand what the big deal is. Fafsa considers an adult to be 25 so it makes perfect sense that this is where they’d start.
Romani…the first table is referring to the age of the older parent of a college student. If a college student is 18 when starting college…the youngest the parent would be is 33…and that wouldn’t be all that common. The table is not referring to the age of the student (the first table…the one that gives the APA for parents).
Common or not doesn’t have anything to do with it. The tables are probably set up to capture any conceivable situation, including rare but plausible scenarios.
What’s so hard to understand?
The table only goes up, to parent age 34. I would venture that the older parent in MOST cases is well over 34 years old. The table doesn’t say age 34 or older. It says…age 34.
And it starts with the older parent at age 24. I mean really…how many college students have an older parent who is 24 years old?
Sorry, but it’s screwed up.
What table are you looking at? You said you were looking at kelsmom’s link. The first table at the federal register link she provided (post #59) doesn’t stop at 34; it goes up to 65 or over.