Financial Aid & Additional Asset - Please help!

thumper1
Sat, 26 Apr 2008 16:09:32 +0000

Your family is very fortunate to have this second home as an asset. If they do not want to sell the home and use the money to pay for college, perhaps they would be more willing to sell it when you graduate, and help you pay for your college loans.

It also sounds like your hardworking family has made a decision to invest use their real estate as their retirement. Many folks do that. You say you still have $270,000 of mortgage to pay on your primary residence. How much is this home worth? Perhaps on retirement, your parents will be selling one or both homes.

There is no way really to divest yourself of a $700,000 home and have the money evaporate into no where. Plus…the reality is that you HAVE this home and it CAN be sold to generate both retirement income in some way, and to pay for college costs.

You are not the only one in this boat. I personally know a few families who own second properties (land they purchased or vacation homes that have appreciated in value). They were very surprised to find that the financial aid folks viewed these second properties as assets to be tapped for college expenses. AND in all cases, their kids chose less expensive options.