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| alake218 |
 Posted: Sun Apr 30, 2006 3:29 am Post subject: Morgage will be paid off in 1 year |
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| Our mortgage will be paid off in November 2007 my daughter will be starting college in 2008. My friends keep telling that if you want your daughter to recieve finacial aid you need to show that you have debt.Why should I be punished for being smart with my money.... What should I do[/b] |
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| Im Not Warren Buffett |
| Posted: Sun Apr 30, 2006 7:50 am Post subject: Re: Morgage will be paid off in 1 year |
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CFO
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| alake218 wrote: | | Our mortgage will be paid off in November 2007 my daughter will be starting college in 2008. My friends keep telling that if you want your daughter to recieve finacial aid you need to show that you have debt.Why should I be punished for being smart with my money.... What should I do |
Chances are, if you own your home outright then you are not likely to receive financial aid. I say that without knowing anything else about your financial situation, but any private college's financial aid office will see that and expect that you will use some (if not most) of that equity to pay for tuition. I received zero financial aid, even though my parents moved all sorts of money around in an attempt to get something. Bottom line is, if you have a high income, it doesn't matter what your financial situation is, you'll be expected to pay. If you don't have a high income but do have a sizable net worth, you'll be expected to pay using what you've managed to save... there's really no way around it.  
As to why you will probably be handed an EFC (Expected Family Contribution) that will cost as much as a new BMW, that is the way the system works... the "rich" pay their share, and then some for those who don't have as much. I'm going to cut myself off now before I start railing on every form of wealth redistribution present in our society though.  |
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| frusnak |
| Posted: Sun Apr 30, 2006 9:52 am Post subject: |
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CFO
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Good point INWB.
We ran into the same situation with our three kids going to college. Everyone here knows about what kind of luck I have with $.
We had saved money for our kids using savings bonds. When we cashed the last one in and paid income tax on them, guess what? You got it , the feds made them tax exempt for education!  
The state of Florida has/had a $2500 scholarship for high school grads. with a 2.8 gpa, they were able to use that, work part time and take out student loans to pay for the balance of college. |
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| bigdave |
| Posted: Sun Apr 30, 2006 12:29 pm Post subject: |
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Investing Sr. Associate
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| the only thing i would suggest is dont plan on getting any help from uncle sam or the college but you may be able to get your kids to qualify for private sponsored scholarships as they are usually based on being involved in a group etc... and are less dependant on income. |
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