I am a senior in a difficult financial situation trying to figure out college. I just found out I didn’t get into Questbridge, and I’m worried about paying for college.
My parents recently separated and my father recently left the country. He left on vacation 2 months ago but we don’t know when he is coming back. My parents are not on good terms but still in contact. My dad will not contribute to paying for college. He is a real estate agent so I think technically owns his own business. My mom makes 55,000 a year. My dad recently bought real estate investments using all of my parents’ retirement money (without telling my mom), so I don’t know how that will affect our financial situation.
My older sibling is at an Ivy League and we are currently paying $10k a year for them (including their $5k student contribution, which they have to take out loans to cover). The real estate is already factored into this. We are going to make less money this year (2015) than our 2014 tax returns show and next year we will most probably make even less (without my dad’s income). I don’t want to take out loans, partially because my family isn’t in a stable enough financial situation for me to feel comfortable about owing money.
Here are my stats:
URM girl in science magnet
GPA: 3.85 UW, 4.61 W
SAT: 2320 superscored, 720 math 2, will take another sat 2 this november
ECs: involved with some school activities with leadership positions and lots of time put in, community activism, research internship at university
My dream school is the Ivy my sibling is at now. I am planning to apply there ED. Other schools I am looking at include Stanford, USC, Occidental. I really don’t want to go to my state school (midatlantic), in part because I want to be a little farther from my family. I want to major in English and try to become a screenwriter.
Any advice about my situation or schools to look at or anything would be much appreciated. Thanks!
It sounds like your dad has been doing whatever financial aid forms were required for your sister already and those (plus your mom’s info) resulted in a pretty low family contribution. I can’t see a separation or having 2 in college making the family contribution any higher IF he will still do the forms.
So the big question is, will you dad still do the forms? He only has to do them once, really, for both you and your sister.
If you can get into the Ivy or Stanford and would expect to pay $10K a year or less I think it is worth getting the loans but not for most other schools when there are a number of schools you could essentially attend for free based on merit.
Well, that’s ONE big question. If he will do the forms but won’t contribute, then you are in a position where you need to make sure the school you attend is affordable, and Ivies tend to be more affordable in higher income ranges than other schools. Obviously you can’t count on getting in, however.
So some financial as well as academic safeties are important to have, and the list thumper posted is a good start. If you are looking at Temple and Bama, note deadlines are coming up very soon for full merit consideration.
A convo with your mom may be in order also, to see what she can contribute to your college costs whether your dad also contributes or not.
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My dad recently bought real estate investments using all of my parents’ retirement money (without telling my mom),
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Where are those properties and were they also put in your mom’s name? Or did your dad essentially take the money and buy property in another country in his name only?
If there were withdrawals that have tax implications and your mom is left “holding the bag”, your mom will be in a bad situation.
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you are looking at Temple and Bama, note deadlines are coming up very soon for full merit consideration.
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Absolutely put in some apps where you’ll get huge merit for your stats.
If your dad withdrew money from a retirement account, it could count as income.
The real estate your dad bought is not yoir primary residence, and it will need to be listed as an asset...the equity in it,
Your mom needs to get her financial ducks lined up in a better row, and she needs to protect herself. In my state, if she was the beneficiary of the retirement account, it could not be liquidated without her written permission. She needs to figure out what is really going on.
Look at the link I posted upstream. You might want to consider aiming for merit awards that won’t consider your assets or income.
AFAIK, retirement accounts are never joint. Dad can’t withdraw from mom’s retirement accounts. Unless he committed fraud. But it is true that there will be tax implications—and penalties if he is under age 59 1/2.
Also, if your Dad has abandoned you, maybe he won’t have to fill out the CSS because he left the country and you don’t even know where he is. Start documenting that situation any way you can. Then only your mom’s income will count.
Also, you will HAVE TO write a supplementary letter to go along with the CSS explaining your situation. The way you explained it in the OP was very good and clear. I personally think it’s a good idea to apply to the Ivy ED. Many Ivies will pay full tuition for a student with your mom’s income (assuming you can get them to exclude your out-of-country-don’t-know-where-he-is Dad’s income). Concurrently apply to schools where you will automatically get full tuition scholarship. If you get in to the Ivy but for whatever reason, they don’t give you enough money, then you have the perfect “out” for getting released from the ED acceptance.
^^^
I dont think the OP said that they don’t know where the dad is. Likely, they do.
Leaving the country doesn’t eliminate the dad from being considered by schools like ivies.
It sounds like the marriage is in trouble, dad took the retirement assets, pretended to “go on vacation,” and moved where American laws can’t reach him.
We don’t know what kind of accts these “retirement assets” were in. They could have been regular investment accounts held jointly, but considered to be “for retirement.” or they could have been protected retirement accts and their will be penalties for early withdrawal. Dad’s out of the country so he wouldn’t likely be moved to pay those penalties; mom would get stuck…if that’s the situation.
Heck, depending how messy this all is, the mom may have difficulties filing her taxes next year in a timely manner for this student to even get a processed aid pkg.
The student can certainly try for some ivies, but don’t expect great news. The student needs to protect herself and also apply soon to schools that will give her big merit.
Also -I’m thinking you use last years financials for the CSS and School Specific Financial forms for ED IVY’s… I know Penn the deadline to submit Penn specific financial material for ED applicants is Nov 2 so a heads up make sure you get your Early Decision Financials in soon…
and I have heard stories of parents who have divorced to get better financials at Ivy’s (totally unethical IMO) but in your case it sounds like a divorce would probably be a reality anyway? I don’t know how divorce changes expected contribution or any of the specifics but I have heard that more than once…
I have no idea who told you that but it’s a myth and totally wrong. The Profile list is down right now or I would quote it. I am sure all the Ivy league schools use income from both parents (and any new spouses).
Regardless, this student is going to have to write an explicit supplementary letter. If mom will be responsible for paying the taxes from the dad’s unbeknownst-to-her withdrawals, that needs to be stated in the letter. Start documenting all relevant facets of this situation right now. Maybe go to a clergy member, guidance counselor, or other credible outside adult who can write a letter and vouch for all of this.
Suggest that you look here for full ride merit scholarships. If you attend a college on a full ride merit scholarship, you will not have to worry about your parents’ uncertain financial situation and how that can (probably adversely) affect the financial aid you may get.
You can still apply to the need-based-aid-only colleges and apply for non-custodial-parent waivers, but you should be aware that this could be a double-reach (reach to get admitted to the most selective of these colleges, and another reach for getting the waiver approved).
If dad withdrew from 401k and IRA retirement accounts, then the 1099-R is to dad’s social security number. Mom can file MFS or HOH and would not be picking up dad’s 1099-R distributions and resulting tax liability.
Use the list that ucbalumnus posted above. You need to look carefully because some schools only consider EA applicants for merit aid. EA deadline is either 11-1 or 11-15 so you may need to hurry.