Most confusing/annoying/frustrating parts of college financial experience?

Parents Forum
81

My pet peeves:

  1. The NPCs are useless if you own your own business, have rental property and are divorced from the other parent.
  2. FAFSA adds back in 401k contributions and doesn't take into account your retirement benefits. Someone who is self employed and 100% responsible for funding their own retirement (no company matching, no pension) is in a much different position than someone with a government pension awaiting them upon retirement.
  3. Generally, LTV limits on property for cash out refinances are 75-80% so it's not like you can tap that 20-25% equity to pay tuition.
  4. Having to file the FAFSA to obtain an unsubsidized direct loan.
  5. FAFSA doesn't take into account health insurance premiums or extraordinary medical expenses.
82

Ditto on the useless NPCs for business owners, landlords, and divorced people–wouldn’t this end up affecting more than 50% in some manner? The schools are also not transparent in these circumstances.

Also the 401 contributions for those without a pension. It’s not just the self-employed who are fully funding their retirements–it’s many of us.

I remember being amazed with S1 how stacking works (or doesn’t). I was pretty upset when I learned all those hours on scholarship aps were basically wasted. This year D had 11 aps and several NPCs which weren’t functional until far too late into the game–either not working, showing costs from 2012, etc. or not showing merit, including at a school which gave merit to 99% of students, ranging from $1,000-19,000/yr.

Bonus points to schools with transparent easy to navigate sites, current financial numbers, and clear cut matrix for how merit aid is awarded.

83

I am divorced and the NPCs were fairly on target for us. But my ex-husband does not work or receive SS or disability, and survives off of the kindness (enabling) of others. He has no income and no money to contribute, so he’s a non-factor. I’m covering the cost of college.