Yeah …based on the chart I linked, it’s likely income is >$250K. Even so, they’d get some need-based scholarship, so paying the full bill is a kerfuffle.
It’s excesdingly rare for 250k to get need based aid, certainly not almost half tuition. Like many colleges, P used the word “average,” which tells us nothing of the back stories, except that it notes most have 2 in college. There could also other circumstances.
As thumper noted, OP hasn’t even said if they did apply for aid. He initially implied the loans could be 70k/year and sure hasn’t said a word about it being a lower number.
It doesn’t matter if he gets the loans from Princeton. That doesn’t change the basic problem: principal in the amout of 280k. Crazy.
And nor does it make a big difference if his kid gets by without an employment credit check (say, if the loans stay in Dad’s name.) It is still 280k that someone needs to pay. With two other children at home.
Crippling.
Nor has OP confirmed if his son is headed for a lucrative career like finance, med scool, law, etc. All he has done is repeat about internships. For all we know, hs kid is interested in something humanities related, a non-profit, social services work, teaching. Or the arts.
@lyndonws, A $250k income + $0 or low assets may qualify for a little need based aid somewhere. I don’t think a $250k income + large assets or a $250k income + business ownership will. We don’t know which situation applies to OP.
we have the money in a 529 for the first year. We have a 401K. Im hoping neither of these were detrimental to us getting no financial/merit help because that would be a sad disincentive to be responsible. The fact that this information was asked surprised me. I have friends on a similar income (both parents on 6 figures but definitely middle class) and thier children went to “lesser” schools for more money - another reason for being grateful that my son got into an ivy (price does not reflect quality it reflects demand). The point of my initial thread was based on being brought up in the uk (lived here as a us citizen for 20 years) and noticing the differences. This country rightly or wrongly makes a closer association between the parents finances and a child’s welfare. In England the state takes care of the child’s healthcare and education (and its paid back in higher taxes). I was really interested in what happens if a parent refuses to financially help a child go to college. Do they lose the opportunity? Do they have to wait until they are 21?
yes, if the family refuses to pay, the child often loses the opportunity to attend a private 4 year sleep away college right out of high school. Community college tuition can often be paid with a direct loan, so if a student can live at home, he or she does not lose all opportunity to go to college at 18. A student is independent for the purposes of financial aid at 24, not 21.
I will add, too, that while the European system is funded through higher taxes and offers a nearly free education, the system is far more restrictive than what we have here. Students advance through high stakes testing and not nearly as many can get in to the public universities. Now, if your child doesn’t get into the publicly funded university, and you want him or her to have a bachelor’s degree, what do you do? … Pay for a private education on top of all those taxes.
I think you have some rose coloured history specs on, UK student debt is now a big deal and plenty of Brit kids don’t go to university because of money. Many US state schools would be cheaper in-state than a UK school on home rates. For UK kids the COLis the killer. As you are probably old enough to have sat the 11 plus you would also know your path was set at a very early point. One bad day and you could have been much less fortunate, had you been from the wrong side of the class divide. There seems to be no financial aid for UK kids, period. Loans only.
How much is in the 529? That’s for your kiddo’s education. Why do you see it as a problem for the school to inquire about it?
if i save money for college (i do) and my college fees are increased because of it that’s a disincentive to save. same for my 401k.
11 plus was my parents. I actually left school at 17 with O levels, traveled the world for a few years before growing up and deciding to go to university. I didnt have the required A levels and as such went to my local university on a foundation course which got me into the London School of Economics. In some ways i screwed the system by having a free ride and them moving to the US. University loans in England are up to 10K pounds a year which is alot for them but they dont have to pay back the loan until they hit an income that determines they can pay it back, which i would like to see here. Yes its a fallible system that entry to a university course is based on exam results only, but i was able to take a foundation course with no exam results and get into university.
The 529 and 401k are two different animals. Assets in a QRP ( qualified retirement plan) aren’t counted toward college expenses. A portion of the 529 is, along with any liquid assets.
Your college fees ARE NOT increased b/c you saved for college. You may not get as much in “need based aid” since you don’t have need. It is amazing when people think others should pay for their kids’ education. Saving for college gives families (and students) the freedom to choose the best education/fit and not be dependent on what costs schools will cover. College may be “free” in other countries, but thats rarely the case in the US. Go to school here, accept the policies.
College isnt free in the UK - its paid for with taxes. The more you earn the more you pay. in some ways the more successful you are the more university will cost you. If I “accepted the policies” this would still be be a british colony (with “free” college"). Discussion is good . Acceptance is part of the problem.
The choices aren’t Princeton or State school, necessarily. Nothing wrong with a good state school but I recognize that the model doesn’t fit everyone’s way of learning. There are some really great liberal arts colleges a tier down that have large merit opportunities for highest caliber students. They are competitive but if your child got into Princeton, they should be in the running. Certainly, they won’t be alone in ability at one of these schools as almost everyone has to consider financials. I’d encourage a gap year and reapply if there are no more affordable options on the table.
I know that 250k may not feel like a lot in your area but living in an expensive area is ultimately a choice and not a choice that colleges recognize as a hardship.
Well, back when we were a colony, no free college.
But is this comparison now the point?
You understand the basic of FA, various terms, how determinations are made? Nowadays, affordability is the companion to the college search. One does need to pay his/her share.
That makes no sense @britboyny . If you want to still fight the revolutionary war, go right ahead. You lived abroad and unless you were an expat here paying US taxes, what do you think you are entitled to in the way of the US paying for your kids’ education?
This has been discussed an nauseam on CC. Perhaps researching this discussion from past threads might be helpful. Bottom line- this isn’t 1775 and even then the colleges in existence in the US were likely not free.
Those who do not have the financial ability to save for college are those more deserving of “need-based aid”. Those who shelter their finances to try to get educational funding they really aren’t entitled to (not saying you- just musing in general as there have been posters in the past who bragged about appearing “dirt poor” when they were anything but), make my stomach turn.
The amount IN that 529 is considered an asset. So, you have 70,000 or so more in savings…right. Do you also have 529 accounts in your name for siblings? If so, the amounts in those accounts are considered your assets as well.
@BelknapPoint can explain this better than I can.
In terms of retirement…how much did you and your wife contribute to your pretax retirement accounts in 2016? Those contributions are added back in as income…so…did you and your wife each contribute $25,000 because that would total $50,000 added to your income for financial aid calculation purposes
The balance IN those retirement accounts is asked for, but is not used in the need based financial aid calculation.
If the parent refuses to pay, the student cannot attend the college. Period. Period…and that has been said numerous times on this thread. No college cares that a parent says they won’t pay. The college isn’t going to increase your kids aid because you say you won’t pay.
Wait until 21? Actually, to be independent for financial aid purposes, the student needs to be 24 (or he can be an orphan, ward of the state, military veteran, married, supporting a minor child).
Yes. Families making large amounts have choices how they spend that. OP is not the first to say, but our income is allocated in other ways, to other discretionary choices.
So Brits with no kids or none attending college are paying for others to attend college. Happy with that?
Princeton is a private school. It costs to attend. Just like your mortgage or your car, if you don’t pay for it, you typically lose it (let’s not get into some state bankruptcy laws. That’s off topic).
Moderator’s Note: It seems the OP’s question has been answered and we are just rehashing. If other questions come up please post a new thread. Closing this one.