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My parents made $20,000 last year, but I created a business last year, and also made $20,000 last year. My taxes cost $7000...

This year my parents are probably going to make another $20,000 and me about $15,000 minus taxes probably $6000

I am hoping to get in an ivy league school, MIT, northwestern, or U of Chicago

Did my business just screw my chance for good financial aid? I only have $15,000 saved, and I still need to pay my income taxes for this year....

Can anyone give me a financial aid estimate?

By Fishmom (Fishmom) on Monday, October 13, 2003 - 03:31 pm: Edit

Hello

I was hoping someone that knew more than me would answer your question!

How I understand it: Financial Aid will probably not assess much of your parents' salary as they make so little. They will assess 6% of their assets after the first $45,000 (if your parents are 45 years old).

Financial Aid will not assess the first $2,500 of your earnings/assets. But after that, will assess 50% of your earning and 35% of your assets.

So with the figures you gave, Financial Aid will probably say that you are able to contribute approx $7,500 toward your first year of college education.

Hope that helps

By Fishmom (Fishmom) on Tuesday, October 14, 2003 - 03:19 pm: Edit

Hello again

Just read something that might help your situation. If you and your parents qualify to use the 1040EZ or 1040A form for taxes, you should do so. I think if you use the 1040EZ Financial Aid won't count your assets at all.

Do some research now, before filling out the FAFSA in January.

By Cutie911 (Cutie911) on Wednesday, October 15, 2003 - 10:56 pm: Edit

question: is there some sort of requirement how much money your parents have to make to get financial aid, like under however much money?

By Fishmom (Fishmom) on Friday, October 17, 2003 - 11:23 am: Edit

hello

Financial Aid is determined by how much income & assets the parents' have and how much income & assets the student has.

I have found Paying for College Without Going Broke by Kalman Chany to be extremely helpful. He not only explains how financial aid is determined but he gives great advice on how to increase your child's chances of receiving need based financial aid. It is especially beneficial to read this book before January of your child's junior year.

I would recommend a fast read once during the middle school years and a thorough reading every fall of your child's 9th, 10th and 11th grade year. The book is updated every Oct and even shows you how to fill out the FAFSA form, line by line.