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Author Topic: Financial Aid - Dumb Question  (Read 1501 times)

upNdown

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Re: Financial Aid - Dumb Question
« Reply #10 on: February 17, 2006, 04:26:34 PM »
-  Just sold our house...kept all of the "profits" to put towards another house, but right now it is money in the bank
-  Hubby has a trust fund that we can't pull from BUT it is in his name
-  Savings of about $50k
-  Substantial 401ks
-  IRAs

You certainly won't be getting any need-based aid since you're doing great financially. 

Don't be so sure.  The OP said they'd been living off a single income.  If that income is low enough (I'm guessing somewhere in the 30K range might be low enough), with 2 dependents, that might turn out a very low EFC.  Play with the EFC calculators, you might me surprised . . .

Thanks for the correction.  I'm so used emptying my accounts come FAFSA time that I've been under the impression that assests compose a big chunk of EFC.

I think the FAFSA is a lot tougher on single people than it is on people with dependents. 
GPA - 2.095 (It was a long time ago and I wasn't trying.)
LSAT - 161

In - Suffolk, New England School of Law
Out - BC, Northeastern
Pending - Nothing pending . . . now what?

jvan2619

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Re: Financial Aid - Dumb Question
« Reply #11 on: February 18, 2006, 09:09:10 PM »
UPDATE:

Looks like I am screwed :(  Just finished my FAFSA...EFC of 28566.  That means there is no way I'm getting financial aid right?  DAMN!  I guess that calculator I used was WAY off!

LawyersGunnersnMoney

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Re: Financial Aid - Dumb Question
« Reply #12 on: February 18, 2006, 09:13:35 PM »
UPDATE:

Looks like I am screwed :(  Just finished my FAFSA...EFC of 28566.  That means there is no way I'm getting financial aid right?  DAMN!  I guess that calculator I used was WAY off!


no, it just means you fall in the bucket with everyone else.  the govt/schools wont pay for your education based on need.  you can still get the stafford and private loans. 

jvan2619

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Re: Financial Aid - Dumb Question
« Reply #13 on: February 18, 2006, 09:26:03 PM »
UPDATE:

Looks like I am screwed :(  Just finished my FAFSA...EFC of 28566.  That means there is no way I'm getting financial aid right?  DAMN!  I guess that calculator I used was WAY off!


no, it just means you fall in the bucket with everyone else.  the govt/schools wont pay for your education based on need.  you can still get the stafford and private loans. 

You made my night!  I didn't realize that I was still in the running for Stafford loans!

To be honest, what really stinks about this is that we sold our house to move for law school/job and plan on buying a new house in our new city next year...ie we have a crapload of money in the ban right now that is actually for the house and WOULDN'T have counted on the FAFSA if we hadn't sold.  :(

LawyersGunnersnMoney

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Re: Financial Aid - Dumb Question
« Reply #14 on: February 18, 2006, 09:30:02 PM »
why dont you use the $50k thats in savings?  is it invested well?

jvan2619

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Re: Financial Aid - Dumb Question
« Reply #15 on: February 18, 2006, 09:38:15 PM »
why dont you use the $50k thats in savings?  is it invested well?

We didn't invest it because we wanted to use it for our next down payment once we move.  Any ideas????  Would it make a difference if it had been in CDs?  Sorry for all of the questions...

upNdown

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Re: Financial Aid - Dumb Question
« Reply #16 on: February 19, 2006, 09:53:13 AM »
UPDATE:

Looks like I am screwed :(  Just finished my FAFSA...EFC of 28566.  That means there is no way I'm getting financial aid right?  DAMN!  I guess that calculator I used was WAY off!


Sorry to hear that.  The calculators were right on target for me.  As others pointed out, you can still get gvt loans.  And the money isn't the important thing, right?
GPA - 2.095 (It was a long time ago and I wasn't trying.)
LSAT - 161

In - Suffolk, New England School of Law
Out - BC, Northeastern
Pending - Nothing pending . . . now what?

jvan2619

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Re: Financial Aid - Dumb Question
« Reply #17 on: February 19, 2006, 10:52:55 AM »
You are 100% right!  I would go even if I had to put it on my credit cards :)

Anyone know what typical interest rates are for student loans - around prime?

LawyersGunnersnMoney

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Re: Financial Aid - Dumb Question
« Reply #18 on: February 19, 2006, 12:26:25 PM »
why dont you use the $50k thats in savings?  is it invested well?

We didn't invest it because we wanted to use it for our next down payment once we move.  Any ideas????  Would it make a difference if it had been in CDs?  Sorry for all of the questions...

it depends on your time frame.  since it seems rather short equities are probably out, however, some preferds pay ~7% and arent very volatile.  cds/money market probably makes the most sense and you can find 4% easily.  thats a couple grand in a year... if youre going to use the $ on a house that one thing, i thought you were just going to leave it in savings for 3 yrs.  interest rates on loans are a little over prime so its no longer makes sense to avoid paying them off.