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house equity vs cash for college tuition

 
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PostPosted: Tue Jul 31, 2018 5:52 pm GMT    Post subject: house equity vs cash for college tuition Reply with quote

With average cost of 50k a year, we all facing the age of un-affordable college tuition, I am looking for insights of dealing with it before I need to fill out FAFSA for my kid. To get better chance for needed base financial aid, or any source of aid and grant, should I clean up my bank account to pay off as much as my primary residency mortgage? Would high equity amount in my primary resident home better off than Cash in the bank?

I talked to a few parents push kids through college, and most of them seems just pay as it goes. Maybe that will be the way for me as well, but I just don't want to take it as it is yet, if someone out there has smarter method to deal with it.
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PostPosted: Wed Aug 01, 2018 1:40 am GMT    Post subject: Re: house equity vs cash for college tuition Reply with quote

Anonymous wrote:
With average cost of 50k a year, we all facing the age of un-affordable college tuition, I am looking for insights of dealing with it before I need to fill out FAFSA for my kid. To get better chance for needed base financial aid, or any source of aid and grant, should I clean up my bank account to pay off as much as my primary residency mortgage? Would high equity amount in my primary resident home better off than Cash in the bank?

I talked to a few parents push kids through college, and most of them seems just pay as it goes. Maybe that will be the way for me as well, but I just don't want to take it as it is yet, if someone out there has smarter method to deal with it.


Unless your kid makes it to Harvard or MIT, you are better off send the kid to UMass or some other state school. You aren't getting any financial aid if you own a home or have any money in the bank. Going into your eyeballs in student debt is a terrible way to go these days. With the savings, your kid will have a down payment for a house when the housing market bottoms out in 10 years.
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PostPosted: Wed Aug 01, 2018 3:14 pm GMT    Post subject: Re: house equity vs cash for college tuition Reply with quote

Anonymous wrote:

Unless your kid makes it to Harvard or MIT, you are better off send the kid to UMass or some other state school. You aren't getting any financial aid if you own a home or have any money in the bank. Going into your eyeballs in student debt is a terrible way to go these days. With the savings, your kid will have a down payment for a house when the housing market bottoms out in 10 years.


Some schools exclude your primary residence when calculating financial aid, so check that out first. I do agree that the massive debt is frequently not worth it and would research UMass if I were in that scenario.

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PostPosted: Wed Aug 01, 2018 8:16 pm GMT    Post subject: Reply with quote

Quote:
You aren't getting any financial aid if you own a home or have any money in the bank


That is not exactly true. I read only ivy league schools and some high ranking school look at your primary residence home equity.

There is an amount of cash in your bank account that will be excluded from school's review, even though the amount has been drastically reduced recently from about 35K to about 15k I think.

When I talk to quite a few folks who has kid and home, they seems has no idea at this at all, so that is why I like to bring this up to get some insights from greater group of people, so we can educate each other to deal with this shitty situation.

The ultimate goal is to preserve your hard earn capital. High education is become so un-affordable in this country, something need to change or all our kids will be stripped of chance to get a college degree. Why can we learn from Canada for keeping the college cost low to citizens?
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