I have been accepted to Cornell and I am wondering if I can change my financial aid.
The Situation:
We currently live in a home around $100,000, but we are moving to an already owned home of $800,000, already in our assets.
Once we move there, can I claim it as the primary home and have the original home as an asset?
Would that be grounds for an appeal?
You can ask…but really…the home In which you were residing when you FILED your Profile form for this academic year coming up is what matters.
What is the EQUITY in your $800,000 home?
What is the EQUITY in your $100,000 home?
If you move now…the $800,000 home will become your primary residence moving forward.
I sort of doubt that Cornell is going to change their current financial aid award…since you had not yet moved…and it doesn’t sound like you have actually done so…yet.
@thumper1
We’re still going to move regardless, it’s just that I am asking in advance.
The equity in our 800,000 home around 590,000
Our 100,000 home is 100,000
Well until you actually MOVE…the college financial aid departments aren’t going to listen at all.
Once you actually MOVE…then you can take documentation of the move, and ask. But don’t hold your breath for the upcoming year.
If this was an essential move, it should have happened BEFORE you submitted your Profile to Cornell.
Also, how much is Cornell asking your family to pay annually? This could be much ado about nothing.
Financial aid is largely based on income…so what is your parents incomes.
It’s about 30k per year, but i think the next years after that the price will go down because of the move.
Around 40k income
Also, what documentation would I need?
Proof that you parents are actually LIVING in that new home. Copies of drivers licenses with the new home address. Utility bills mailed to you parents at the new home. Maybe something like the change in their voter registration address. You will likely need two forms of documentation…and it will likely need to be for both parents. So…BOTH parent drivers licenses.
Call Cornell and ask them. They will tell you what you need to do.
Simply put…you will need to prove that the $800,000 home is your primary residence.
Oh…and you need to change YOUR drivers license and voter registration…and bank account addresses…everything…to your new primary residence.
@thumper1
Thanks!
This needs its own post.
HOW…HOW are your oarents going to pay $30,000 this year for Cornell costs on an income of $40,000? To be honest…the arithmetic in that doesn’t add up.
In their $40,000 incomes, they need to pay their own living expenses, plus there are taxes and other deductions taken out of pay. There won’t BE $30,000 left to pay Cornell.
Where is the money going to come from?
Does your family own a business?
Are the homes located in the United States?
Was the second home a rental property? Will your family rent the $100,000 home out if they move to the $800,000 one.
It is really not going to matter which house you live in.
It is only the FAFSA that does not look at the equity in your primary home.
Cornell is a profile school, they look at everything when it comes to giving out their money. They will look ay the 500k equity in one house and the 100k in the other house
Stevie Wonder can see what you are trying to do. You think that Cornell won’t see what your family is trying to do?
What aid were you given?
What kind of business do your parents have?
Both are asset in the eye of CSS profile. Cornell also consider your primary residence in the asset. I don’t see how the moving would make a difference.
Cornell supposedly assesses primary home equity at a maximum of 1.2x parent income. A non-primary residence property would be assessed at 100% of equity. So, using very basic assumptions, residing in the property with $100k equity would add $638k to the parents’ reportable assets:
($40k x 1.2) + $590k = $638k
Residing in the property with $590k equity would add $148k to the parents’ reportable assets:
($40k x 1.2) + $100k = $148k
Yep…why @BelknapPoint writes is correct.
But the fact is…the family hasn’t moved…they are planning to do so. Once they move…and that IS the primary residence, those numbers will come into play.
BUT if they rent out the $100,000 house, the rental income will also be added to the family income.
And again I say…Cornell will want DOCUMENTATION that your family is actually really living in that $800,000 home.
I’m really not thinking they will make an adjustment for the 2018-2019 academic year…the family hasn’t moved.