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I got in to University of Chicago, but the finances were rough. They expected my parents to pay around 30% of their (combined) income in tuition after scholarsh

I got in to University of Chicago, but the finances were rough. They expected my parents to pay around 30% of their (combined) income in tuition after scholarships and loans. Presumably this would have dropped when my brother entered college a year after me, but given that I got into other schools that cost less than half as much it wasn't really a question. My parents didn't really know what to tell me because on one hand they felt like they were being punished for not making profligate decisions like going into debt for a fancy car or buying a bigger house, but on they other hand they didn't really want to outright tell me not to go somewhere like U of Chicago. Made me feel like college admissions spiels saying not to worry about finances were a lip-service scam designed to make college look accessible while mostly benefiting the rich and very poor and screwing those in-between. Went to a state university instead, but never really fit in there. Too much alcohol, greek life, and sports. In any case, I don't mean to imply that my parents didn't have a decent income, just that the way things worked made them feel like they were being punished for trying to be financially responsible, and being asked to pay the equivalent of a 2nd mortgage for your kid's college only for them to be in debt on top of it anyway, and not knowing how things would work once they had a 2nd kid in college wasn't a strong sell. Even though they didn't say not to go there, I would have felt super super guilty about saying yes. Fun fact: the scholarship U of Chicago offered would have covered the cost of attendance at each other college I got into and then some, but still didn't cover even half of the cost of attendance there.

e40 7y ago
just that the way things worked made them feel like they were being punished for trying to be financially responsible 100% feel you, as I my son just started UCSD. He was looking at a bunch of private colleges and I did the financial aid (for early decision) and it was really shitty. I felt that because I had so much equity in my house and no debt, I was screwed. And, when the numbers came back, it was true. Very little help. I have a work friend who has a very close friend. They're both Dr's pulling down > $500k/yr, but with huge debt. Their kid got into Princeton and they paid $15k/yr. I was more than double that for some equivalent schools, but I make far, far less than $500k/yr. Very glad he decided on UCSD.
- ariwilson 7y ago
  So is the life advice to go massively in debt (and jack up your income) before your kids apply to colleges? How far in advance do you have to go massively in debt? EDIT: Looking at Princeton's financial needs calculator, assuming a constant income, to maximize your financial aid you should: - Reduce your assets: Buy a really expensive house, have nothing in savings/investments/other equity - Reduce your income: Pay a ton for private school tuition, medical expenses, or child support. EDIT 2: Looking around some more, apparently FAFSA doesn't consider: Your primary residence Your car A boat you may own or furniture in your home Untaxed Social Security as income Here comes my big house / Bugatti / yacht!
deleted 7y ago
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ineedasername 7y ago
>mostly benefiting the rich and very poor Not quite just the very poor: U Chicago gives free full tuition to students from families making under $125k. But as for the very poor at nearly every other private college, the picture is more bleak: The average private is in the ballpark of $35k. Maximum grants from the feds and state of Illinois total about $16k. That's not enough. However, it is generally plenty for attending any public state school. The most squeezed bracket financially are families making around $65k a year. They earn too much and so lose a large portion of need based grant eligibility, and have and "estimated family contribution" (EFC) 3 or 4 times higher than families making not too much less. Even state schools are difficult here. My recommendation to such families is to begin by getting an associate's degree for 1/3 the cost for those 2 years, then only pay the higher rate to finish the bachelor's degree in the last 2 years. It's true families making > $100k a year are expected to contribute the lion's share, absent merit scholarships, but they also tend to be families with assets, including houses with equity they can leverage, to help pay. Yes, it sucks to have to do that, but many thousands of families in the $65k bracket are much worse off without even that option. To be clear, I'm not really disputing what you said on that topic: I just wanted to add more detail and nuance. Source: I work in Higher Ed analytics.
- Glyptodon 7y ago
  When I was accepted that ($125k) policy didn't exist or we'd have been included, though in the upper half. I'd likely have chosen to go there if it had existed then. That said it sounds like the general situation I described is somewhat true overall.
  - ineedasername 7y ago
    Yep, your comments were largely correct. I just wanted to add a bit more context and detail. I didn't intend it to come across as a disagreement.
    - Glyptodon 7y ago
      I didn't take it as disagreement!

e40 7y ago

just that the way things worked made them feel like they were being punished for trying to be financially responsible 100% feel you, as I my son just started UCSD. He was looking at a bunch of private colleges and I did the financial aid (for early decision) and it was really shitty. I felt that because I had so much equity in my house and no debt, I was screwed. And, when the numbers came back, it was true. Very little help. I have a work friend who has a very close friend. They're both Dr's pulling down > $500k/yr, but with huge debt. Their kid got into Princeton and they paid $15k/yr. I was more than double that for some equivalent schools, but I make far, far less than $500k/yr. Very glad he decided on UCSD.

ariwilson 7y ago
So is the life advice to go massively in debt (and jack up your income) before your kids apply to colleges? How far in advance do you have to go massively in debt? EDIT: Looking at Princeton's financial needs calculator, assuming a constant income, to maximize your financial aid you should: - Reduce your assets: Buy a really expensive house, have nothing in savings/investments/other equity - Reduce your income: Pay a ton for private school tuition, medical expenses, or child support. EDIT 2: Looking around some more, apparently FAFSA doesn't consider: Your primary residence Your car A boat you may own or furniture in your home Untaxed Social Security as income Here comes my big house / Bugatti / yacht!

deleted 7y ago

[deleted]

ineedasername 7y ago

>mostly benefiting the rich and very poor Not quite just the very poor: U Chicago gives free full tuition to students from families making under $125k. But as for the very poor at nearly every other private college, the picture is more bleak: The average private is in the ballpark of $35k. Maximum grants from the feds and state of Illinois total about $16k. That's not enough. However, it is generally plenty for attending any public state school. The most squeezed bracket financially are families making around $65k a year. They earn too much and so lose a large portion of need based grant eligibility, and have and "estimated family contribution" (EFC) 3 or 4 times higher than families making not too much less. Even state schools are difficult here. My recommendation to such families is to begin by getting an associate's degree for 1/3 the cost for those 2 years, then only pay the higher rate to finish the bachelor's degree in the last 2 years. It's true families making > $100k a year are expected to contribute the lion's share, absent merit scholarships, but they also tend to be families with assets, including houses with equity they can leverage, to help pay. Yes, it sucks to have to do that, but many thousands of families in the $65k bracket are much worse off without even that option. To be clear, I'm not really disputing what you said on that topic: I just wanted to add more detail and nuance. Source: I work in Higher Ed analytics.

Glyptodon 7y ago
When I was accepted that ($125k) policy didn't exist or we'd have been included, though in the upper half. I'd likely have chosen to go there if it had existed then. That said it sounds like the general situation I described is somewhat true overall.
- ineedasername 7y ago
  Yep, your comments were largely correct. I just wanted to add a bit more context and detail. I didn't intend it to come across as a disagreement.
  - Glyptodon 7y ago
    I didn't take it as disagreement!