So my son has applied at the University of Vermont. He is an in-state resident. UVM has something called the UVM Promise - students of families making under $100k/year with “average” assets go to school tuition free. Great, right? Well not for me. My son got $2500/semester and I make $60k year at my job. That puts him paying about $36k/year before the $5500 in federal student loans.
My husband died a few years ago and I got some life insurance money. I invested it on the advice of a financial advisor. Its about $550k. I’ll have 2 kids in college next year. I need to live off that money for the rest of my life and use it to pay my mortgage. Can anyone guide me on how to appeal this? Basically i live paycheck to paycheck on my $60k (gross). My tax returns have had me at around $78k AGI since my husband passed.
Is there anything I can do to make my case? I feel like I’m penalized because I lost my husband and received some life insurance. My son has another friend whose parents make well over $100k, but he has 2 younger siblings (9th grade) and he is going tuition free - but my kid isnt?
Maybe I’m all woe-is-me, but I’m not living high on the hog here. I am barely able to keep up with regular utility bills, kids’ expenses, house maintenance, etc…I drive a Subaru. I’m pondering now to to pay the $1800 to fix my kids’ 11 year old car so it can get inspected for another year. I’m already paying $30k/year for my oldest’s college. She got a tuition exchange scholarship to a T100 University that would cost $90k without the scholarship. Vermont is not a cheap place to live.
Begin by contacting the financial aid office to explain the situation. If your money is not in designated retirement accounts, it is not automatically protected from being considered as available to pay for school. I cannot tell you whether or not appealing will make a difference, but you won’t know if you don’t ask. Good luck.
This is the issue. I once asked Cornell what that means. They said if you have $1 million, no one will give you $$. This was 2019. At W&L, it was 2x income - we got none when 88% of people in my salary band got $38K. If I had less money than you, that was the issue.
Now, you need to live off $550K - which if you put into assured fixed income sill only give you $22/23K a year tax free or a bit more taxable - so not sure you can live off of that.
But perhaps there’s a lower cost option - for example, community college.
Sorry for your loss and for the challenge. The other thought is - you can apply to meets need schools - but I suspect you’ll have the same issue with $550K in live assets.
Good luck and yes, @kelsmom is the aid guru so she’d know.
PS - did you run the UVM Net Price Calculator? It should match what you received but may be worth a look. In essence, you should have known this in advance but maybe it will show something better and that could be a basis for discussion.
I dont really want him to go to community college. I’d like to be able to pay for state school or one of the tuition Exchange schools if he can get a scholarship thru them. I feel like he deserves the same as his older sister, you know? And part of going to college is living there and meeting friends, moving out of your moms house. I will appeal but I’m just hoping someone can guide me with the best way of going about it. I do have a neighbor who works in Student Financial Services at UVM so perhaps she can give me some advice, but I hate having to open up my entire finances to a neighbor.
OP- condolences. You sound like a terrific parent and your kids are lucky to have you in their corner.
I don’t work in financial aid- but I have experience helping friends and neighbor so here are my suggestions.
1- A one paragraph explanation (the narrative)- spouse died on XYZ, life insurance policy with Northwestern Mutual (or wherever) which paid on on whatever date in the amount of ABC, you were the sole beneficiary. The money was immediately invested in (describe here- laddered CD’s, money market, no-load mutual fund, etc.).
2- A simple chart showing all your assets. Market value of your house and your current equity in it (estimate is fine based on zillow or whatever). Monthly payment of EFG which covers your mortgage, property insurance and taxes. Balance in your checking account. Any other assets and designate which ones are derived from the life insurance payout. Recurring expenses ( here’s where your out of pocket medical expenses, premiums for yours and the kids health insurance go). A separate line for your own retirement account (if any).
Then make an appointment to talk your numbers with a financial aid officer- not the work/study kid who answers the phone when you call to make an appointment. Get that person’s name and email, send them your chart and narrative well ahead of the meeting so they can work through it.
I wonder - maybe others would know better - if a private would have more flexibility than a public which likely has tighter standards?
There are schools - Central Michigan is $28k all in but can get to $20k with stats. I believe W Carolina is $20kish all in. Miss State, UAH can be under 20k stat dependent.
Would schools like MCLA or U Maine Farmington be cheaper - they appear lower than $36k if you can find a major in the N England Tuition Break. And you might get merit too.
I understand wanting to do for your student as you did another child, but he will understand if you can’t. He will love you for all you are doing for him. But big picture, you need to retire. And over time he’ll understand.
Yes, private schools have more flexibility. However, every school will have a process for professional judgment appeals. In this case, the request is to adjust a parameter associated with institutional aid - there can be more flexibility with this than with federal aid … assuming that the school’s internal policies allow it (or rather, don’t prohibit it). @blossom has provided a good framework for this.