<p>I was just reviewing the Naval Acadamy Foundation web site and found again the information about their prep program. They give the following for a basic formula for financial aid and state that it is
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<p>The method is this: Adjusted gross income divided by 200,000 determines the percentage of assistance the family receives. So, this your AGI is $100,000 you would be eligible for 50% assistance. For siblings you get an additional $1000 or somthing small. </p>
<p>I thought it was interesting that they said it was “substantially more favorable” than the Princeton formula since at a quick pass for us it didn’t appear to be, especially with the lack of a real sibling consideration. </p>
<p>Anyway, I thought I would post it as maybe some could use it as a general guide when “guessing” what you might be eligible for.</p>
<p>Ahhh…it said if you are under $40,000 AGI to see them for special consideration.<br>
It seems to be backwards…
Maybe I messed up when I typed it…
let me go back and see.</p>
<p>We use what is known as a 40/200 rule to calculate the percentage of the TRB to be provided by the family. If the adjusted gross income (AGI) is between $40,000 and $200,000, we divide the AGI by 200,000 to determine the percent of the TRB to be borne by the family. This percentage may then be adjusted to take into account sibling college educational cost requirements at a rate of up to 10%.</p>
<p>Ok, so it’s the OTHER way around. You get the percent that the FAMILY pays by doing that math.</p>
<p>seems difficult to figure out – if I had an AGI of $42,000 (just above the cut-off) then I come up with a figure of .21 or 21%. with no other sibling costs – and a boarding school costing $38,000 – the family would be expected to pay $7980. That seems very high to me for a family making $42,000 – and I know for a fact that with that type of AGI, the Princeton method yields and EFC of closer to $3000 or less (no assets).</p>
<p>It also seems odd that they don’t take into account assets.</p>
<p>That’s exactly what I thought Stef. St. Paul’s for example says a family earning $60,000 typically qualifies for FULL tutition support. Using this method, they would have to pay 30%. </p>
<p>The other thing it says is if the amount is too much, then chose a less expensive school. Well, they are all pretty much the same (within a couple thousand dollars). </p>
<p>I think for SOME it may be more favorable (like those with a ton of assets and no other kids in school) and for others it is not.</p>
<p>AGI is not after taxes are taken out – this is the number at the bottom of the first page on your tax form. It is income (I think most forms of income, including investment, unemployment, earned, etc) and then you subtract out a few things (student loan interest, ira deductions, alimony paid, etc). this yields your AGI. Pull out your 2006 tax forms to find last years.</p>
<p>You can find out what the SSS formula says you can pay by requesting it when you file – it costs about $12. I know, because I have filed an SSS the past two years and I was told what the formula said by the two schools my older son attended. I also use this calculator (using institutional method) to get an estimate: [FinAid</a> | Calculators | Expected Family Contribution (EFC) and Financial Aid](<a href=“http://www.finaid.org/calculators/finaidestimate.phtml]FinAid”>http://www.finaid.org/calculators/finaidestimate.phtml)</p>
<p>if you use the calculator, remember that is it only and estimate AND that the numbers have to be accurate. don’t guess – have your tax forms in front of you when you fill it out.</p>
<p>So, if the AGI is over 200000, it does not matter how much debt you have and how many kids goes to college at same time, you can not get any financial aid?</p>