<p>I’m an international student and I’m applying to several colleges that claim to meet 100% of a student’s need. When colleges calculate the parents’ contribution, what percentage of their financial assets is usually added to the amount of money that they must contribute with? Is this diminished if the family has an income of under $40,000 per year? I noticed that some colleges state that families with incomes under $40-60,000 are not required to contribute to their child’s education, but are assets still taken into consideration? When I say assets, I mean real estate, business assets and money deposited in a bank account (all owned by parents).</p>
<p>I’ve done a little research and it seems that around 5% of parents’ assets are taken into consideration… but is that 5% per year or for all four years? For example, if my parents had assets of $100,000, would my parents be required to pay $5,000 per year or would that $5,000 be divided by four, for each year of college?</p>
<p>The formulas you are looking at are designed for US applicants, so please don’t assume that they will work for you. You need to ask each of the places that are on your list what formulas they use for international applicants.</p>
<p>In the example that you give, the family would be expected to pay $5,000 each year.</p>
<p>That 5.6% of assets for parent’s is a FAFSA number. International students do not use this form. The most generous schools use the Profile, and sometimes their own form, to collect financial information for international students.</p>
<p>Check your college choices to see what they require for financial aid applications for international students. This can be found on the financial aid section of each website.</p>
<p>Need based aid is awarded annually. So you would need to reapply every year. The 5.6% (for citizens, eligible non-citizens) is for each year.</p>
<p>Other threads indicate you are interested in applying to Yale and Princeton…and the like. Yale uses the Profile. Princeton has its own financial aid form. Acceptance to both schools hovers around 5% or so…and speculation is that international students are accepted at perhaps lower numbers than others.</p>
<p>In addition to these highly selective and generous schools, you really need to have some college’s on your list where you will be able to afford to attend…either here due to merit eligibility, or in your home country.</p>
<p>example, if my parents had assets of $100,000, would my parents be required to pay $5,000 per year or would that $5,000 be divided by four, for each year of college?</p>
<p>the % amount would be figured EACH year…so in your scenario, $5k the first year, and then figured again for each following year.</p>
<p>. So, if the % is 6%, then each year, 6% would be calculated. There may be a certain amount (maybe about $50k) that would be protected (don’t know HYPS formula). So, if your parents have $300k in assets, then maybe $50k would be protected, and then each year, about 6% of the remaining assets would be assessed.</p>
<p>Thumper is right. Int’ls have a very, very, very low acceptance rate into HYPS schools. there are a gazillion high stats int’l students applying…especially from certain countries, China, India, etc. </p>
<p>If you want to study in the US, then find some other schools, maybe with large merit scholarships, as back ups.</p>
<p>How much will your parents pay each year?</p>
<p>Plus…these schools have annual “student contributions” that can be $2k-3k or so per year …on top of parents contribution.</p>
<p>It’s really not possible to say what those few schools that will actually treat international students exactly the as they do US ones, and meet 100% of need for them, as their formulas are quite different. That handful of schools tend to be very generous and it is entirely possible and probably that there are different %s used for different set points, such as a lesser percentage of the first $X of assets over the protection allowance and increasing as the amount of assets increase. Also, different kinds of assets are treated a difffernt way. A common example of this is with the primary residence. Some schools don’t cap it, some don’t include it, some cap it at % of income and that % varies. Some will assess retirement funds, some don’t , some do at a certain break point. If a family business is involved, it’s all over the map as to how assets are assessed. </p>
<p>And, yes, the formula is used each year. So the same money gets hit the same percentage each year which means that if it is expected to stay put all four years, and is hit up at 5%, 20% of it will end up getting eaten up in the time it takes to get through college,(assuming you are out in 4 years). It’s a big hit for families with a bit of a nest egg and a several children as the amount would be pretty much eaten up if there are three kids consecutively in college, for instance.</p>
<p>The conditions laid out are just general ones, and when it comes down to giving out the money, the assets and income will be scrutinized. It makes no sense if a family has milllions of dollars tied up in assets but a small income to ignore those assets, and these schools do have some sense in doing out their money. </p>
<p>A friend of mine with income below the cut off was given no money for his son’s college. Harvard took full consideration of his assets which were tied up in real estate which was what generated his not so high income that was below the $60K income guarantee. Too bad if he borrowed or sold the holdings, that it would bring his income below what he needed to live. And this happens with many who own businesses that generate a modest income, but are assessed at a high enough amount that the colleges balk at giving anyone with ownership of the same.</p>
<p>But the situation can vary greatly, so give it a go, but do not count on a school to look at your financila picture the same way you do, and make sure you have some failsafe alternatives in hand as well.</p>