<p>Thanks so much for your fast reply! I knew this wasn’t true or just worded poorly: “This estimate is composed primarily of state, federal and university need-based grants and does not include athletic or other scholarships.” It makes it seem like you don’t count the scholarships here but below in the additional resources part where it says,“Student/family resources such as current earnings, savings or scholarships can help reduce your Estimated Net Price.” That was tricky and that’s the part that gave DS such hope. So any other scholarships he wins would come off the grant amount and not the bottom line, right? </p>
<p>I thought that was too good to be true but still, it’s pretty close and I think less than the UCs so it’s a maybe…I guess we’ll just have to see what happens with the other schools and see if any one package is better than another. I don’t want him to have $25K in loans especially if he wants grad school or beyond. We don’t own a home so that didn’t figure into it and have no assets. Because the 529 is in the grandparents name, I was told here that we don’t report it since we are not the owner but any distribution counts as untaxed income to DS and can mess up his finaid for the following year if his income crosses some limit. I have to go back and see what that limit was.</p>
<p>Gosh this whole thing is so “ugh” and I don’t like the way they did it sending his packet out along with the merit scholarship interviews. He was so excited and then no mention of one at all in the packet. We thought it was a mistake. It made us all feel bad instead of excited that he got in. I guess they had a bunch of kids to decide between and DS was close but not close enough for an interview but they figured they’d send them all out at the same time anyway. Do you think USC doesn’t know that all of us know what happens? In this day and age, they have to know that the kids can see who is getting what and when!</p>
<p>I know his counselor didn’t send in his mid year report yet and I can’t help but wonder if that would have made a difference with straight A’s in all his classes (all aps and an upper level college class!) and he moved up in rank to number 1 or 2 ( think it’s a tie?) and just got an additional award in math that wasn’t on his application. I have to stop thinking about it and stop kicking myself when I realized there was a place for him to enter it himself…but we didn’t know. My heart sinks when I realize how close it must have been and then see all the great opportunities for the scholarship winners like the special dorms, fieldtrips, etc…sigh. I feel sad when we should be happy that he got accepted…He applied to a lot of out of state schools but I really don’t want him to go far away so I was just hoping this would work out for him. He still has a few other schools in CA including the UCs so cross your fingers for me that he doesn’t have to go out of state!</p>
<p>Thanks again for all of your help and your quick thinking! I really appreciate it and hope that you are fast at typing so it didn’t take you too long.</p>
<p>The 529 distribution is not taxable as income. Please follow the link in my previous post. 529 distributions are only taxible if your total of tax free aid, including the 529 EXCEEDS qualified tuition and fees. For USC, qualified tuition and fees will be over $45,000. Only the amounts OVER that amount will be taxable, so with the estimate you currently have, he could get an approximate $10,000 distribution for a 529 and not have a tax liability. If his total gift aid plus 529 distribution exceeds qualified expenses, only the amount that exceeds it is taxed, and then at the student’s low rate. If expenses DO exceed gift aid, he or you may be eligible for other tuition tax credits that will negate the tax liability.</p>
<p>In other words, it would be foolish to NOT use the 529. The 529 is for college. Use it. Use the 529. 529 accounts are meant to be used for college expenses.</p>
<p>Going over the income limit is not a problem, and will not “mess up” financial aid. If he earns more than the income limit, then he would simply have to contribute part of ONLY the amount over the income limit. More money is always better than less money. Given an opprotunity to earn more, do so.</p>
<p>Financial aid distributions are NEVER counted as income in USC financial aid calculations, so none of the USC gift aid is considered income by USC or assessed for finacial aid purposes. His work/study income will not be used in financial aid calculations. His summer job is already a part of his financial aid calculation - just write a note to USC reminding them of that next year if they do not notice (they DO notice - they do this every year )</p>
<p>Okay, I think I have it mixed up. He would have to report the distribution for the 529 as untaxed income on FAFSA and THAT would affect his financial aid for the following year. I don’t even know about the tax part but I thought that if the student’s income went over $6K, whatever amount over was “counted” at a rate of 50% against his FAFSA/finaid or whatever the formula is to “ding” him for the following year. </p>
<p>If there is some new change in laws or some other way around this, I would be thrilled to hear it. All I can do is try to educate myself and hope it all works out. I love it when people remind me that he will be SOMEWHERE next Fall! </p>
<p>Thanks again for your help! I really do appreciate it.</p>
<p>Again, only the amount of income in excess of the limit are assessed for financiial aid, and then, only the amount above qualified expenses counts as income. Number 1) the impact on future financial aid would be small, and would be far preferrable to a large debt load or to attending a school that is not as good a fit. Number 2) Financial aid is meant to assist those who cannot attend without aid, not to assist in preserving funds saved for college so that the family can use it for other things.</p>
<p>The “resources” line on the NPC is meant for exactly those kinds of resources - the money available to that student for college use. </p>
<p>Thanks again. Yes, if he can get the money, it would make all the difference in the world. It’s a tricky situation as the grandfather is ill so we don’t know what will happen. Because the situation is so unsure, we were told not to count on it! </p>
<p>When I went back and reread the posts from the first go round about the 529, vballmom really worked hard to lay it all out and it seems like if he can get the funds, he should try especially if that makes it possible to go to USC.</p>
<p>All I really know at this point is that DS is happy as a lark. He spent a lot of time working on scholarships yesterday but I didn’t know for sure to tell him that they only replace the gift aid and don’t count toward the EFC or loan part. That’s right, isn’t it? Even if they are outside scholarships? So what is the point of doing the scholarship applications if it doesn’t benefit the student? </p>
<p>I am going to secretly send the housing app fee to USC asap just so he can get in line if things work out. It’s only $45 I think so a small way to hedge a bet for good housing without putting any pressure on DS to make a choice before all the cards are on the table. I think the thing he was most disappointed was he wanted to be in that Birkrant honor housing/ group because he liked the ideas of the mentor program and field trips but he found out that Dean’s are excluded from that. That said, there are SO many opportunities at USC, I can’t imagine being excluded from that small group will matter much when he is there.</p>
<p>DH also reminded me this morning that if we can swing the first year (if the grandfather 529 is not available), his income will go waaay down because the one time payment won’t be in the mix so that is hopeful, too! USC will reevaluate finaid each year based on the new FAFSA, right? If so, I think it’s a “done deal”!</p>
<p>Outside scholarships actually ARE a benefit as USC generally allows them to be used to replace self-help including Stafford loans and work/study or be used for educationally-related expenses such as a computer for school use without reducing gift aid. Wait until after you get your package before informing USC of outside scholarships, then submit a list and specify that you would like them to replace self-help and/or be used for an educational purpose.</p>
<p>Other info: If your student is offered an educational summer opportunity or research opportunity that would mean he can’t work over the summer, you can contact USC and ask to have the summer earnings waived. </p>
<p>Yes, USC re-evaluates need each year. remember that the loan component will go up somewhat each year.</p>
<p>It sounds like excitement is building in your household! I will be hoping to hear that it all works out!</p>
<p>Thanks again, he’s working on scholarship apps again so we’ll see how it goes. I heard him moan when it logged him off and didn’t save any of his work, poor guy. If he wants it back enough, he’ll do the work for it!</p>
<p>He sat down and talked to me about more of why USC is so important to him. He was accepted to astronautical engineering and he tells me that there are not many programs like that. I think he said only 3 in the entire country. He has a whole plan that he never told us about and honestly, I didn’t even know what astronautical engineers do so he explained it all and showed me on a map all the employers near USC involved in space research and specifically, new propulsion systems for rockets. He also toured the Jet Propulsion Lab at Caltech and apparently some of the faculty either came from there or are involved in that in some way to impress him. He has been following advances in space very closely and wants to be involved. He told me stuff about how there are plans in progress to excavate minerals from asteroids and all kinds of things that sound exciting to him and he feels that USC has a lot to offer him in that regard. Who knew? A lot of schools he applied to had aerospace or another type of engineering or he chose physics but this is apparently what he wants to do.</p>
<p>We’ll see how it goes but I will be doing a lot more research into USC.
Thanks again for all your help and encouragement!</p>
<p>You send it to the colleges via collegeboard. It is $9 application fee and $16 for each college. It is mandatory for some colleges (most private) for financial aid. Check your colleges to see if they require one.</p>
<p>I found this thread being very helpful and full of useful information. I haven’t found, however, answer to the question that concerns me a lot now. We have a sophomore at USC, so now we’re applying for the next year FA. Our financial situation has changed. We’ve been very low income, but now my husband’s got a 6 digit paying job. Our 2012 tax returns show very low income, but on CSS there’s a question about expected next year income. This job is not stable, though. So, I’m wondering how putting down his expected salary (which is not a guarantee!) will affect 2013-2014 aid. I fully realize that when we apply for FA next year, we will enter our earnings, and they’ll affect the following year FA. But how much weight do FA administrators put into next year estimates?</p>
<p>As always, I recommend my favorite financial aid book, Paying for College Without Going Broke by Kalman Chany for line-by-line instructions on filling out the aid forms. </p>
<p>From my old copy, the authors make this recommendation for the CSS/Profile Expected Income and Benefits question:</p>
<p>Since you are being asked about the future, there is no question of getting into trouble if your figures are off. In most cases, the colleges will be awarding aid using your base income income year date rather than your projection for the coming year.</p>
<p>I would reason that I have no idea what to “expect” next year, as you never know when layoffs, illnesses, or family needs may affect your job/income. I always put down the same amount for the next year as I had just put in for the current year. I think you would be safe to do the same.</p>
<p>Good luck!!</p>
<p>P.S. The 2013 version of book I mention above is available on Amazon for less than $15. I promise it will be the BEST $15 you will ever spend.</p>
<p>Thank you so much, alamemom! I actually got the book you recommend some time ago. I didn’t know it gives instructions on filling out CSS Profile! Will definitely go there for advice.</p>
<p>And thank you for your advice - I felt exactly the same way. Whatever we earn will be reflected on the next year tax returns and FA forms anyway. I was just surprised that I couldn’t find any discussions about this topic (CSS PF section) anywhere on the internet.</p>
<p>Again, thanks for being there for us! It really, really helps to be able get an opinion and an advice.</p>
<p>I’m sure it’s been asked but here it goes again. Does the the USC $20K NMF scholarship help the cause (reduce parent’s out of pocket) or is it meaningless since the scholarship will just reduce need based aid, resulting in the same parent required contribution?</p>
<p>Hello,
Yes, it has been asked/answered before. Please read the first two pages of this thread for answers to dozens of questions - including yours - that get asked over and over.
Good luck!</p>
<p>Alamemom, I haven’t submitted my CSS/Profile yet - will that affect when I get my financial aid package? I have been admitted to some UCs already.</p>
<p>FIRST, submit your CSS/Profile as soon as possible.</p>
<p>Officially, USC does NOT guarantee to meet the need of financial aid applicants who miss the February 2nd deadline to submit the CSS/Profile and the FAFSA. Unofficially, I have seen anecdotal evidence here on the forum of financial aid applicants who have submitted late financial aid applications and still received adequate financial aid. Those packages, however, were presented significantly later than those of on-time applicants - many of them AFTER the May 1st commitment deadline.</p>
<p>WHAT YOU CAN DO: (Assuming you are admitted by USC) By the third week of April, request an extension of the May 1st commitment deadline from USC until your fin aid package is received. Be sure to get the response in writing and make note of the name of the person granting the extension (via an email, for example). Do not wait until May 1st, as you will not receive a response in time.</p>
<p>If May 1st arrives and you do not have your USC package, you will have to make a deposit to the school you KNOW you can afford and would attend if USC does not work out. Do NOT just hope for the best and let your options evaporate - make an ON-TIME commitment deposit to a school you KNOW you can afford. I see that your other options are UCs - they will not typically grant an extension while you wait to hear from USC, and they are often inflexible with deadlines. If you later choose USC, your UC deposit will be lost, but it is far better to lose that than to have no school options if USC is not affordable for your family.</p>
<p>IMPORTANT NOTE: When packages are presented in mid-April, yours may appear. It will likely be a package based on you only submitting a FAFSA and will contain ONLY Stafford loans and Pell grant (if you are eligible for Pell) and possibly Cal Grant. It will not contain USC grants, which are a SIGNIFICANT part of USC financial aid, or work/study. Your full package will be later.</p>
<p>FOR FUTURE APPLICANTS: The USC financial aid deadline is FEBRUARY 2nd for the FAFSA AND CSS/Profile - do NOT miss deadlines if you are dependent on financial aid to attend USC.</p>
<p>We purchased the Paying for College without Going Broke book on the advice given in this thread last year when D was applying. Best $15 we spent–bought the latest edition this year…really great information, well worth the price.</p>
<p>Alamemom: Just got another email from financial aid asking for my parent’s corp. tax returns? Can I take this as a positive sign? Would financial aid still be asking for stuff “today” (decision day mailing) if I’m getting rejected?</p>
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