Do both spouses work? If the $250k is from one spouse’s earnings, then the simple solution is for the second spouse to get a job. Let’s say spouse gets a job that nets $50k/year. You’ll need maybe $10k of that to replace some of the tasks that spouse does at home. More ordering in of meals, more outside cleaning help, maybe babysitting help, maybe an additional car. So then you have $40k for the college bill. Can you cut back enough to fund the additional $30k with current income?
A rule of thumb for financial aid from Princeton is families pay about 10% of their income. The fact that you aren’t getting any aid suggests that you have a lot of assets or you own other properties or you own your own business.
Another possibility is that you didn’t apply for aid thinking it would help with admissions
I would just say no to Princeton. You simply cannot afford it. There are other excellent schools to go to instead that would cost you much less. I would never consider putting my family in financial jeopardy just to say my kid graduated from Princeton.
Princeton by far wasn’t the most expensive which is a bright spot here. At least it’s the best for value in comparison. Binghampton was 22 and we got a 7k scholarship. All the rest we’re private or out of state schools which cost more. Princeton was $47 plus dorm. Nyu was more as was ucla. We earn around 250k. I don’t consider that rich. Both parents earn 125k and we live in new York. We have a modest house and do not drive fancy cars. We are lucky we don’t struggle but definitely not wealthy.
That 10% of income “rule” for Princeton is not for $250,000 a year incomes
The OP posted this so it seems they both work.
@britboyny think of it this way…if you can’t pay this $70,000 a year out of your current income…how will you expect your son to pay $3000 a month just in loan repayment on an income that will most certainly be less than 1/2 that amount.
How do you figure Princeton at $70,000 a year is a better value than Bing at $14,000 a year? Please explain??
Your story doesn’t make sense.
You say your kid “just got accepted to Princeton”. What does that mean? Princeton sent out acceptances to students in April. Not “just”. The day for deciding to matriculate…or not…was May 1.
What did your kid do? Did the kid choose Bing? If not…Bing might be off the table for attending this year?
Did the kid pick Princeton?
Or did you double deposit which is clearly not permitted per the common ap instructions?
Where did your kid…or you…commit to matriculate for fall 2018.
You don’t need to get loans from banks. Unless it has changed, Princeton offers its own loan program for parents if you earn less than $500,000 or even higher with multiple kids. Did you ask? Not sure that changes things, but it does reduce the interest rate and also takes the complexity out. And, yes, as far as I know, Princeton is the only school wealthy enough to do this. https://finance.princeton.edu/how-to/tuition-student-billing-l/loan-options/princeton-parent-loan-pro/
I am little perplexed that you did not even know this, it is right on the finance website.
Or just got off wait list?
Being Expats ourselves, I just think this is a common case of a rather well off family getting acquainted with the necessary costs of sending their kids to College in the US, which are indeed rather different from Europe. Nowhere in the original post does it say that the family can not afford to send their son to Princeton, rather the OP is asking general questions about the FA system, financial responsibility and the treatment of incurred debt, if any. Simply pay Princeton from cash flow and liquid assets as you are already paying for your mortgage, which you said happens to be around the same amount/year. Both investments have build in tax benefits which will reduce your tax rate, you might actually move into a lower bracket. Best of luck!
Well anyway, princeton will help with loans and tuition payment plans. That is the best option to attend and manage cash flowl
May 1st was the day to commit to offers of admissions and scholarships, unless you were called off of a waitlist. So, if you have not enrolled somewhere, you need to make sure your admissions and scholarship offers are still on the table if you need to change schools.
250K may not seem “rich,” but there are a lot of people who do not own any home, even a modest one, especially in a high cost of living area like Long Island. You are well above the median income in the USA (which is around 60K), even if you are not in the top 1%.
@manyloyalties
The family may not be US citizens. We can also guess that they aren’t PR
Reading between the lines…if the intl family isn’t living in the USA, doubtful that P is going to lend much or all
Yes thumper I know They have a high income but they probably have assets or some other situation
Per Princeton…
Family income $200,000–250,000. $30,750 grant which is 65% tuition
This family got nothing so they probably have assets or business deductions
FWIW, my 2nd kid got into Cornell, no financial aid and I had a very (very) hard time accepting that he couldn’t attend. He’s at the state university and I still feel out of sorts about it (for many reasons).
They live somewhere on Long island, NY. Citizenship status, we don’t know. And the implication is large loans.
Did you apply for need based financial aid at Princeton…or did you just assume you would not qualify. Ofyli did apply, did you do the Princeton form as well as the FAFSA?
Your story as it’s told isn’t making sense. If your only financials are a $250,000 a year income, according to what @mom2collegekids found, you should have received something in terms of need based aid.
If you didn’t apply…of course you would get nothing.
I’m still patiently waiting for how Bing at $17,000 per year is NOT as good a value as Princeton for $70,000 a year…in loans.
Are the parents here self employed? Do they own property where a business is located?
I don’t believe Princeton has taken students off the waitlist at this point…so this is a regular decision acceptance…
@britboyny: did you fill out Princeton’s financial aid forms?
Princeton offers financial aid for families of 5 that make 250k. You apply for aid at the same time as you apply for admission. You send everything to Princeton and they give you sholarships.
Did you do this?
If you didn’t it may still be time for you to contact them, perhaps defer for a year (ask Princeton for permission to take a gap year. Be ready to explain what will be done during that year and why you need a gap year. When you defer they hold your place for you.) Defer for a year, apply for financial aid in October, get your financial aid package, decide whether it’s affordable.
If you did apply and didn’t get aid did you ask for a review? Can you get the Princeton loan?
(It doesn’t make sense that you didn’t get I’d unless you have high assets. Princeton doesn’t count your primary residence, so do you own a second home? What sort of cars - Honda or Mercedes or Lexus - that counts? Any investments in the six figures that you could sell? Art/paintings in a safe somewhere?)
The little private scholarships don’t help much. The list scholarship money comes from Princeton itself.
Did you fill out the FAFSA?
Has your son already deposited at Princeton (May 1 deadline)?
@britboyny It doesn’t take “bravery” for parents to not pay more than they can afford for college. It takes being adults and being parents who are willing to tell their kids, no, they won’t destroy both parent’s and child’s future financial stability. Thousands of families fit that profile.
And, no, not attending Princeton does not mean employers won’t hire him. A state university doesn’t destroy futures. The elite/employee mantra is a very, very small % of US reality. Kids can go to low ranked schools and still go on to great jobs and grad schools. (And those elite grad schools pay for them to attend.)