Financial Aid Slaughtered for 3rd Year Student-Help...Tips

Can your son and you get to campus in person and request an appointment with the director of financial aid? Putting a face on things might help, outlining your efforts/willingness to pay as much more as you can muster without compromising your retirement, etc. Your son needs to make an effort to reach out to his dad now that his interview is over, as I would imagine they expect that source of funds still needs to be tapped as much as possible.

Ask for other options your son may be able to get to help cover his costs. The more you express a willingness to work with Amherst to get your very accomplished son to the finish line with Amherst, the better. Please don’t focus on the negative with your ex, to either Amherst or your son- all the houses or cars he has, for instance - at the end of the day, they are not going to go after him as he is not legally obligated to pay. No parent is. Hopefully, he will step up .

This is really not just about Amherst. This would be sad and stressful for any kid that had to potentially change schools for financial reasons. Congratulations to your son on the job offer and continued best wishes for a good outcome! You are doing a great job in supporting your son!

“I have the impression that Amherst has a pretty clear picture of dad’s capacity to pay.”

In case nobody has mentioned it, you can’t rely on a college to tell you what you can afford to pay. When a college calculates what they think you can afford to pay, that’s just their polite phrasing of “the total cost less the amount for which we are willing to subsidize you.” The college doesn’t care if you’re going to be penniless in retirement or if you have a special needs child that will require additional cost or if one of your family members has heathcare issues that you’ll be responsible for or any of the thousands of other things that can and do pop up in life.

When a college gives you their calculation of what they require you to pay, it would be nuts to assume that you or your ex can safely and comfortably afford that simply because someone else tells you you can.

You need to be responsible for your own finances just like your ex needs to be responsible for his - and that includes understanding your own situation and what you can afford. Amherst isn’t going to be there or care in 20 years if you haven’t saved enough for retirement, you’re still paying off your and your son’s student loans and are cutting your blood pressure pills in half because you can’t afford your prescription.

IOW, Amherst sent your son, you and your ex a bill for $46k. That doesn’t mean you can or should pay it. That doesn’t mean your ex can or should pay it. That doesn’t mean your son can or should pay it. A combination of all or none of those things is entirely reasonable.

I have to ask about twin B, is she not capable of college? Is she THAT different from your other kids? I suppose the question is, what if she wants to go to college in a year or two? What happens when she is expecting some college funding? Many kids take a longer way round. With a BOGOF set it is especially important when it comes to being reasonably fair. Does dad think this is a potential issue? If you sell the farm and have nothing for her because you owe so much already?

https://www.amherst.edu/system/files/media/Notes_18-19.pdf
“Number of children in college. A major factor in the need formula is the number of children in college. In general, a calculated parents’ contribution is divided between the children in college. For example, if the number in college changes from two to one, the parents’ contribution will usually double because it is no longer divided between two children.”

I don’t know if it would help to appeal the financial aid. You do have another child attending trade school.
“An appeal for reconsideration of an award must be made in writing. The letter should address changes in circumstances, unusual expenses, special situations, or additional information not already presented in the financial aid application.”

In our case we had zero financial support from the NCP. D attended the school that offered her the most merit aid. Priority was given to graduating debt free. Relying on the NCP and financial aid to attend a private school was never an option for us. It was just too risky.

Colleges don’t care whether it is mom or dad that pays. They just want their money.

@thumper1, I see your point. My understanding is that some undergrads can take out PLUS loans if their parents don’t qualify (but said parents could conceivably co-sign). In our situation, DH took out PLUS loans as a grad student. We had been married several years and I was purposely not a co-signer.

OP, congrats on your S’s internship!

PLUS loans don’t have co-signers. The parent either qualifies or doesn’t and if parent doesn’t, no loan. Student gets an extra $4-5k in unsubsidized loans if parent doesn’t qualify (but it is very easy to qualify). No need for life insurance on the student as if the student dies (or the parent dies) the loan is forgiven.

CountingDown, your H may have had a different loan program called a Plus. They change all the time so maybe there were co-signers under his program, but if they were willing to give him the loan without a co-signer, why would you, or anyone, want to be added to the loan?

I don’t get quite understand this statement in the context of a parent Plus loan.

I deliberately chose to take parent Plus loans over HELOC precisely because I perceived the Plus loan as the safest route. I viewed my retirement funds as untouchable… but I did consider the total I had in retirement in determining the total amount of the Plus loan. My basic rationale was that if I borrowed from retirement, there was a high likelihood other things would come up and I wouldn’t pay it back; but if I took out a Plus loan with monthly payments I could afford, but with a total amount less than the amount in my retirement accounts – then I’d probably keep up payments, but in the event of an unforeseen setback, it wouldn’t bankrupt me.

I felt that the Plus loan had a variety of safeguards that would protect me, such as the ability to change payment plans & extend loan payoff, to qualify for deferment in the event of unemployment, or to qualify for loan forgiveness in the event of disability.

I’m not suggesting that you should borrow if it is a hardship to you. But it does seem that you were prepared to pay $20K without borrowing. Your son can borrow $15,000 over the next two years in direct loans, and he probably qualifies to have $11,000 of that be subsidized. (FAFSA won’t count the father’s income for determining EFC, so there’s probably a gap between Amherst’s award and the FAFSA EFC). So that leaves $18,500 needed for the coming year. That would equate to a monthly payment of around $230.

The other thing to remember with the Stafford loans is your S won’t need to start paying back until 6 months after graduation, at which point one presumes he’ll be well situated with a high-paying job. He can start to pay off immediately though should he wish to chip away at the loan. If he hasn’t been set up to receive these loans in the past two years, you’ll want to get him signed up ASAP. I know they were part of the “package” with my D. To activate she had to go through an online financial / loan workshop online, acknowledging her responsibility, etc. The loans are then dispersed directly to the school. I’m sure someone at Amherst FA could give you direction on how to get this going.

@Sybylla Twin has explicitly expressed unwilliness to go to college and unwillingness to accept assistance from either parent to help pay. It’s off the table indefinitely.

For clarity, for all involved in the discussion, what I proposed to non custodial parent was that we each double our contribution from previous years, I had been paying 5k he had paid 10k. If we both double our contribution, and my son takes out FA loans and applies his summer earnings towards tuition, then we have a situation which is within reach. I have not disproportionately expected non custodial parent to bear the brunt of this situation.

Also, for context, non custodial parent did not contribute a dime to older daughters college education once court order terminated for him to do so. Court order terminated sophomore year. My older child and I paid for her last two years of college without assistance from non custodial parent. The financial burden I have placed upon myself to help my kids through college is not one I regret or resent, I am just hoping dad will partner with me/student in getting him to the finish line.

I can assure every person in this diacuszion that asking him to pay 20;000 a year for the next two years to get my son through college at Amherst is not a burden for him. While we are divorced, I am aware of many aspects of his financials/salary/bonus’/severance package/assets, etc.

Amherst has been generous the past two years considering what he could be capable of contributing. I just had no idea that our price tag would double. I expected and increase but not double.

I know it’s small consolation, but part of the reason that your costs are doubling now is that Amherst has been particularly generous for the first two years. Because you had another child in college, they halved the expected contribution, even though your daughter’s COA was far less than Amherst’s.

Not all colleges do that. When I had two in college - one in a state regional public, the other in a private – my daughter’s college insisted on documentation of my son’s actual COA from his school. So no 50% reduction for me… just the amount of my son’s very modest tuition. At the time I was happy for whatever reduction I could have – and for me it was only one year, and I had asked for a very detailed breakdown as to financial aid policies with or without the son in college prior to accepting the spot for my daughter – so no surprises.

So yes it is a shock now – but many colleges would not have given you so much of a reduction in the first place.

I know that doesn’t help now coming up with the difference. But it might give you some perspective as you plan for the next two years. If you average the costs over 4 years, assuming similar cost for his senior year – then its about $33K per year.

@calmom Yes, I didn’t know what questions to ask at the onset to be able to help my student make an informed decision looking at all four year price projection. I did not ask about policies and formulas to determine aid which would have provided a clearer picture I’m sure. At this point, I’m just trying to figure out how to move forward since we’re just at the midway point.

@CountingDown no. If the parent doesn’t qualify for the Parent Plus Loan, the student is eligible to take addition $4000 of DIRECT loans in the student name.

Undergrads don’t take Parent Plus Loans.

There are Grad Plus Loans did GRAD students. Just GRAD students.

OP, thank you for all of your clarifications - I know it is not fun going through what you are enduring, and I hope your ex steps up. I think your story will be very helpful for a lot of families, especially as a reminder to those that even at the very generous schools like Amherst, it is important to try to estimate the cost over all 4 years as your family situation changes.

Our experience with the Amherst FA department was very different. They were not only very helpful when we met with them before admissions - there was a gentleman there who made it clear that each year’s FA application was for one year only, but he told us “without giving any financial advice, here are some of the questions you will probably be asking yourselves as you compare our program to the schools we compete against”. They get lots of questions from families with multiple siblings and they really do want to help. I recall being surprised when he told me that there were a lot of students whose families take out loans, even though they try hard to come up with an aid formula so that students don’t have to do so. But every student and family has different priorities, and while there are students who want to work during the summer, there are also students who will prefer to travel or do research or lots of other things. Amherst generally will exclude a significant portion of home equity on the principal residence, and they don’t expect parents to stop contributing to a retirement plan during a child’s college years. Some schools do.

It is clear that you agree that Amherst is very generous, and you agree with them that based on what you know of his father’s financial situation, this is not a concern of whether or not he can afford to, but instead whether he will agree to do so. I fully understand that due to its price tag, Amherst may not be seen as value to many full-pay families, but there are many families who happily pay even though, lets face it, a student accepted to Amherst may have merit options at other schools.

I think your approach sounds more than fair, with you and your ex both doubling your contribution, and you son taking a Stafford loan. Will you need to take a PLUS in order to double your contribution from $5K to $10K? Do you think your ex will kick in another $20K over the last two years? You mentioned earlier he has been very unwilling, especially if you ask, so is your son asking him? Have you told your son that if his father does not increase his share that you don’t know how to make it work?

I can understand a child being reluctant to asking a NCP for additional money for an expensive school. I would recommend that if he does ask, he explain that he himself is getting a loan, and (if so) he intends to pay both mom and dad back in full. In order to appease his father more, perhaps he agrees to pay his dad back first before he pays anything back to mom. Your son is a young adult and is learning about how to solve some of life’s problems - would it be better if he asked his dad if his dad knew of any other possibilities besides dropping out/transferring? When S was asking us for financial assistance on his new home purchase, he told us afterward he realized the best way to ask us was to show us that he’d thought of multiple possibilities. But by now, your son probably knows the best way to reach out to both of his parents.

I would print out that pdf file from post #143 that clearly states that the parents contribution will double when you go from two to one child attending college. It is clearly written on their website so this should be no surprise. Have your son show this document to his father. It’s an official document from the university.

It is quite possible that you may not get a response from him. There are many wealthy parents that won’t pay for anything after age 18. It may not seem fair but it is their choice.

Would getting a no interest credit card help at all? I am seeing some cards with 0% percent interest till 2020. I know you mentioned son has four jobs during the semester. Are they minimum wage jobs? It maybe worth considering having a side business of tutoring. Parents of high school students pay about $30/hr for tutoring here. You son could easily provide math or SAT/ACT/AP tutoring. (possibly at a higher rate) He could provide help to college students as well. You mentioned him being an excellent student. (math major)

One thing to consider. Your third child is not considering college at this time but your don’t know what the future holds. They may find that they need to go back to school in the future or financial support for something else. Whatever you are not spending on the 3rd child you are spending on the 2nd one. I would still leave some of that education money aside for the third one to give in some form. (that way you are fair to all three children)

You currently don’t own a home and you are paying your own college loans. I would advise against taking money out from retirement or taking on additional loans. (Even if it means taking a gap year for the child to work) It may seem unfair to the child but these financial decisions can’t be made emotionally. Do you have the possibility of taking on a 2nd part time job? That is another option to consider. According to that pdf file the tuition payments can be made in monthly installments.

I truly feel for the hardship you are going through. Trust me I have been through some really challenging times and can relate to some of your experiences. It is very stressful.

@3puppies I hope to not take out loans for 2018/2019 school year if I pay $10k and dad agrees to contribute $20k. I have the $5k for fall semester and believe I can scrape the other $5k before second semester tuition is due. I have small stock accounts I can sell. My older daughter inherited my high mileage car and she has recently upgraded cars post graduation and if the older car sells, she will put this money towards her brothers expenses for college. I will also be able to save marginally as I am now employed. I may drive Uber/Lyft evenings and weekends need be as I’m currently working 9-5. A meeting with FA department prior to commitment would have been very helpful.

@raclut For second semester, I will likely set up installment payments directly to the college as you mentioned. I also viewed the pdf someone shared earlier and will make sure to share this with my student to share with his dad.

@UVGOT2BKIDDINGME Thinking this through, if I were in your shoes I would beg Amherst College to reconsider the financial aid for next year, and at the same time very seriously consider taking a junior year abroad at a very good small university where full pay with no aid at all is on the order of $25,000 per year in US dollars. I would then borrow or scrounge or beg as needed to pay for your son’s senior year at Amherst.

I would try to talk to Amherst again. Contact class of 2020 Dean. He is listed on their website.

Agree. Your best bet is to deal with the financial aid office at Amherst…in person if possible.

I wouldn’t say this about just any school, but finishing at Amherst is worth begging your ex, maxing out on loans, pleading with the FA office, and doing whatever you can to keep your son there. UMass is a great school, and if he ended up there, he could still take a lot of classes at Amherst, but having a degree from Amherst could make all the difference in his future earning power. Over time, he could pay you back for what you have to pay these last two years.

OK, PLUS loans have changed since we had to deal with them. Do be aware that there are differences in terms between Parent PLUS loans and private student loans. Go PLUS if you can.

We liked the HELOC vs. PLUS for our sons because we knew we’d pay the HELOC off before anything else, and the interest rate was 4% (before the writeoff for interest). Fortunately we only hit the HELOC for the amount of my take home wages from my PT pension job as a result of my heart attack, and only for about one semester’s worth of expenses. Thank goodness for a small mortgage payment that enabled us to cover the rest.