My parents are millionaires. People keep saying we should file for FAFSA regardless. Should we? Or is it a waste of time and effort?
If I file for FAFSA and colleges see that we are well-off, will they take away any of my merit-based scholarship money? (All private institutions)
There is no reason to file FAFSA if you have millions of dollars. Just having a million makes your EFC too high. You would never qualify for a federal grant but you would qualify for a student loan (5.5k freshman year) or a parent plus loan if your family wanted that. For generous schools, they want the CSS profile in addition to the FAFSA, and CSS asks deeply about all your assets. Need aid from colleges starts to fall off sharply after 140,000 income and after 200,000 you wouldn’t likely see anything.
Most colleges offer merit aid to attract good students regardless of income. Most colleges will not ask for FAFSA for merit aid but there are exceptions and if they want it they will tell you on the scholarships page or the financial aid page.
What makes your parents millionaires? If it’s home equity and qualified retirement accounts, you may very well qualify for FAFSA-dependent financial aid. “Millionaire” doesn’t necessarily mean million dollar income.
I wouldn’t file. Or file in May after merit has accepted
<<< will they take away any of my merit-based scholarship money? (All private institutions) >>>
who has offered merit
A few schools do require you to file the FAFSA to get merit aid. You need to see if the school(s) you are looking at do require FAFSA. If they do, just file it. You won’t get any more than the merit, but yes, if it is require you must do it. Florida used to require it to get the Bright Futures award, which was totally merit, but two years ago they changed that requirement. Some schools still wait for the FAFSA filing, so if you aren’t going to file it, make sure your school knows that. Last year I didn’t understand why my daughter’s school merit aid and her BF wasn’t posted to her account, and it was because they were waiting for the FAFSA so they could post everything at once.
I doubt very much if the Obamas will be filing one.
Did anyone read Post #2?
Parents could have $1,000,000 or more in home equity and qualified retirement accounts and under the APA in non tax-deferred accounts - and low income. In that case the student might even get a Pell grant!
While it’s possible that the parents are “low income” with huge assets, the OP sounds like the parents are high income and high assets.
Are you getting that impression from posts that OP has made in other threads? If not, I’m curious which words in OP’s post at the top of this thread lead you to that conclusion.
<<<
I’m not applying through HEOP or EOP, nor am I eligible for reduced/free lunch or anything like that. We are pretty well off in an upper-middle class suburban neighborhood.
My parents both went to Queens college but I’m just beginning to narrow down the college search so we haven’t discussed too much about the application process yet.
[/QUOTE]
I just read what mom2 posted as well. In addition, the OP says the parents want to pay for $25,000 a year.
If that is the case, the OP might want to file the FAFSA so she or he can get the Direct Loan of $5500 to add to the $25,000 the parent wants to pay.
The OP needs to clarify what makes the family “millionaires”. If it’s income, why won’t they pay more for for college?
OP, are you a NY state resident? If so, all of the SUNY schools will be in your price range as an instate student.
Unless you are a mind reader, I still don’t see how you can tell what the family’s financial situation is such that “the parents are high income and high assets.” In my opinion, OP simply hasn’t provided enough information for anyone here to make an informed recommendation that FAFSA should not be filed. I know a family with a net worth of $1 million + that qualifies for generous need-based financial aid, including federal subsidized loans and work study. Like OP, this family could be categorized as upper-middle class. They have decent assets in home equity and qualified retirement accounts but a modest income (although not low enough to qualify for Pell or free/reduced school meals). Their net worth is well over $1 million, and yet filing FAFSA has definitely been beneficial (and we’re not talking merit dollars).
I think that they won’t pay more than $25k because that’s how much their state schools cost and her stats are modest. They probably think that it’s not a good investment to spend more for what’s needed.
There have been posters on this forum with well in excess of a million dollars in assets who did qualify for the Pell Grant…because their income was low enough and they had one of the other qualifiers for the simplified needs test…and their assets were not counted.
Hi all, thanks for your replies. Sorry for the general description, I didn’t want to post too much information. We have millions in savings but a modest income. Dad lost his job of 23 years about 4 years ago so our combined income dropped from about $180 to around $120, and he is currently employed. Assets are moderate-high I believe (parents own the house and 2 cars.) My parents do not want to take out any loans so we’re not really interested in the direct loan of $5500. We’re going to a FAFSA seminar next week at a college I was accepted to, and I will also talk to my guidance counselor about it. Thanks everyone. Any more advice is welcomed. 
$120k/yr would be considered on the high end of income. If you’re not interested in taking out loans, the only reason to fill out the FAFSA would be for the small chance for institutional aid (ie: the school you’re going to gives out it’s own money). Unless you’re going to a 100% needs met, wealthy school (we’re talking Ivy-level), I would expect no need-based grant money.
This is not a definition of “moderate-high” assets. Millions in savings is definitely high asset. The question, for FAFSA purposes, is what kind of savings? Retirement savings in IRAs, 401(k)s, 403(b)s and similar “qualified” retirement accounts is good. Millions in checking, savings, money market accounts and non-qualified investments is bad (as far as qualifying for need-based financial aid).
Yes - “Millions in savings” are assets, which is much more than “moderate-high”!
OP, please understand that your primary residence is excluded as an asset on FAFSA. Your cars are not reported as an asset (or any other consumer goods.) If your parents have funds in a retirement account like a 401k that is not counted either. Assets for fafsa are checking and savings balances, stocks and funds and other real estate pretty much. Does that add up to a million or more?
If you have “millions” (as in two million dollars or more) in regular savings…the interest on those accounts would be able to pay for your college costs.