Hi! I was recently admitted into Wellesley College through ED 2 and am incredibly excited, however, the financial aid award was significantly less than what was shown on the NPC and MyInTution calculator. I was able to schedule a meeting with a financial aid counselor and she told me that this discrepancy was from the dividends that my parents gained. The reason behind the dividends was not clear in the CSS profile and the counselor told me to submit an appeal with new information on where they come from. My parents told me that they come from the small business we own. and also told me that they had lost the lease to the business and the landlord could tell us to move out at any time. My question is, would it be important to put in the appeal that we might lose our business? Due to the fact, we donât know when it will happen and if it will even happen.
Iâm not sure âmightâ is a reason someone will change an aid offer but I suspect being factually correct is important. That the landlord may tell them to leave isnât a certainty and Iâm sure in this situation maybe they are seeking an alternative location to stay operational.
You might give the possibilities but I canât imagine an offer will change due to that as nothing has really changed or impacted their finances and thereâs no certainty anything will.
You might contact another college you applied to aid department and ask for guidance for their school - just to give you an idea or insight into what they might be looking for.
You might also ask - if year one doesnât change but year two does for your family and they have no or little income, will that change things so you donât have to drop/ transfer out. Since you will apply for aid each year this shouldnât be an issue. But letâs say your family loses the business but then gets employment and earns a regular salary. That could, in theory, reduce your need. Do your parents already work outside the business ? And thatâs just extra coming in ?
The other thing to note is assets - if your family has assets outside the business, that might override more aid.
I think NPCs arenât necessarily set up for business owning families
Also @kelsmom spent time in aid and might have a totally different thought / perspective.
Hopefully you have an affordable acceptance, regardless of the Wellesley aid outcome acceptance in hand in case youâre unable to afford Wellesley, a fantastic school but not worth causing you or your family future financial harm. I just worry that you may not know the full extent of your parentâs situation in time.
Best of luck.
Usually colleges want documentation that something like this has already happened. This is becauseâŠit might not happen. You noted this yourselfâŠit might not happen at all.
Contact the Wellesley financial aid person and ask what to do in this situation. They will tell you.
Being self employed or owning a business is one thing that often makes the net price calculators NOT accurate. And MyIntuition very often gives a lower net cost than anywhere else.
But the thing to doâŠspeak to the Wellesley folks again. They will advise you what to do.
Do this quickly because itâs an ED2 acceptance.
Yes, talk to the financial aid officer again. If possible, it would be a good idea for your parent to be in on this call (or make it). I donât see a reason to change your aid offer based on what you posted, but your parent may have additional insight that would change things.
Look at this page about " Professional Judgment"
and specifically the one about âImputing Asset Valuesâ. When there are interest/dividends, but not declared assets that could produce those interest/dividends, they may âImpute Asset Valuesâ, i.e. they are saying there are some extra assets out there that are responsible for your dividends. The value would assume a certain interest rate.
This is just a hunch about what it could be, but ask if they are doing this, and what assumptions they are making.
We used to do that at the school where I started my financial aid career (many, many years ago). We assumed assets based on interest/dividends, and if we didnât see reported assets that made sense based on those assumptions, we would request bank/investment statements as of the date of filing. Itâs possible that this school just adds the assumed assets into the formula, which they are free to do when awarding their own aid. I think that it would be wise for your parent to read the information @BrownRiceS24D27D29 posted & call the financial aid office to discuss.
Lots of good advice aboveâŠadding that you should not withdraw other apps or decline other acceptances until you sort this out with Wellesley.
Do you have any acceptances that are affordable?
Good luck as you and your parents work thru the process, and keep us updated.
I have two other acceptances that are affordable but Wellesley is my top choice so Iâm hopeful they can give us a more affordable offer.
And you also have an ED2 acceptance from Wellesley soâŠyou need to reconcile wht you are doing about that.
Just remember, there are many schools where you can find happiness and success.
And even if Wellesley fixes one year, then what if your parents lose the business ? Aid could adjust up but maybe not enough ?
Whatever you decide, donât take large risks with your and your familyâs future finances.
Best of luck in getting it worked out but if you got into Wellesley, youâll likely excel there or wherever you end up.
Best of luck.
My counselor did say that they are assuming assets based on the dividends we gained. I asked my parents for more information on where the dividends came from and it comes from the business we own as its an inc.
Owning a business can sometimes add additional issues when schools are computing institutional need based aid.
For example, there are deductions allowed by the IRS that are added back in as income for business owners. This can affect the amount of need based aid awarded as well.
They will have this risk at many schools though, at least the ones that meet full need or close to it.
With all due respect, your counselor doesnât know that (assuming they did not talk to Wellesley FA staff, which they should not do). Please do get your parents involved with speaking with Wellesley about finances.
Only your parents will have the necessary background and information to discuss their situation with Wellesley. Please have one of them speak with the financial aid officer. And please make sure that the school will remain affordable for your family - your parent should ask about any future concerns they may have.
That they had to guess about sources of dividends suggests to me that perhaps you did not submit the business tax return to the FA office?
Theyâll probably want that.
I believe when businesses are involved itâs best to have the parent involved in this discussion (and in filling out the NPC). Even the brightest kids often donât understand how business income and taxes fit into the big picture.
Iâd just try to lay out the full picture to the FA office and go from there. I donât think status of lease is really an issue until it becomes ripe and you can have another discussion at that point.
I meant my financial aid counselor from Wellesley as I had a meeting with one to ask a few questions about the aid we were awarded. My parents donât understand much more then conversational English and they donât usually stop working until the financial aid offices at Wellesley close. However we will be visiting on Tuesday next week so hopefully I can arrange a meeting in person.
Thatâs a good idea. You might give the FA staff a heads up about your parentsâ English, and see if they can get a translator there. If not, use google translate (unless you can translate and are familiar with financial terminology, taxes, and such).
Good luck with the visit and meeting.
I did submit the business tax return so Iâm not sure why they assumed different assets, but hopefully I can get everything figured out at a in person meeting with the financial aid office.
I would very strongly suggest that you have your parentsâ 2022 tax return and all schedules with you when you go for that meeting. This includes the business ones.
@politeperson I am not familiar with the details of the wellesley NPC but unless it specifically asks if parents own a business or are self employed (most donât) the NPC could very well be inaccurate.
Also, we donât know how the business is structured. Iâm wondering if that could make a difference.
One more thingâŠbefore the FA meeting talk with your parents about a target COA for Wellesley. The number that you need to make this work for your family. And if they canât/wonât meet it, be prepared to walk away.