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    college aid question

    Okay so reading through about aid for college, has any of the early retirees experieced what happens when you no longer have income? Or say you were laid off?
    LivingAlmostLarge Blog

    #2
    Originally posted by LivingAlmostLarge View Post
    Okay so reading through about aid for college, has any of the early retirees experieced what happens when you no longer have income? Or say you were laid off?
    I'm not an early retiree but I do have 2 in college so I'm a little familiar with how it all works. First you have to fill out the FAFSA, that is the paperwork that will determine what your EFC, amount they think you can pay for college. Income and investments are reported on the FAFFA, but NOT retirement accounts(I don't honestly know if your retirement income, ie pension(?) is reported or not?)

    I believe the most you can get if you don't have a lot of income or assets is the Pell Grant and it's only somewhere around 5500/yr. And then there is SEOG grant but I'm not sure how much that is? We don't qualify for either one but they don't amount to much. Then you will be able to get loans. Your most aid is going to come from the college either in the form of merit aid for grades or financial aid from their endowments.

    There really aren't any free rides for no money, I really think that is a misconception a lot of people have. College Confidential is a great site for all things college related.

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      #3
      Originally posted by Thrif-t View Post
      Your most aid is going to come from the college either in the form of merit aid for grades or financial aid from their endowments.

      There really aren't any free rides for no money
      I agree. The most money is going to come from the school, not the government.

      The one government thing that is need based is whether or not you qualify for subsidized loans. We only qualify for unsubsidized, which is fine, but there's certainly a big advantage to the subsidized ones.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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        #4
        Agree with the others. If you have ANY non retirement account assets they will be reported on the FAFSA. This includes equity in a home. And of course, you have to report educational savings.

        We have qualified to take out loans, but that probably isn't the financial aid you are interested in. BTW, we have refused all loans up to this point (two years of college without loans).

        If you have the money, it is a blessing to pay for college, not a burden.
        My other blog is Your Organized Friend.

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          #5
          Originally posted by creditcardfree View Post

          If you have the money, it is a blessing to pay for college, not a burden.

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            #6
            I'm just curious. I wonder if people who FIRE (retire early) get a break for college? I just wondered if they don't bother saving for college because there is a break?
            LivingAlmostLarge Blog

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              #7
              Things may be different by the time your little ones go off to college....

              FAFSA is very complex. I believe most aid is in the form of loans and work study programs. And, I don't know how FAFSA treats retirement money saved outside a retirement plan (I'm guessing not too favorably).

              Also, FAFSA now does a 2 year look back. I've read that you can explain to your school that you have had a change in circumstances. But, what the school
              does seems to be discretionary.

              What does MMM say about this? Although, maybe he has a few years before his child goes to college?

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                #8
                Originally posted by LivingAlmostLarge View Post
                I'm just curious. I wonder if people who FIRE (retire early) get a break for college? I just wondered if they don't bother saving for college because there is a break?
                I'm confused why you think someone who was smart to save and retire early, should get a break on paying for college? The 'breaks' that are given are for those that have a true need. They have very little to no income or assets. I know you and your husband have wonderful income and want to buy a house and retire early, but why do you think you should get a break when you have the income and assets when others do not have those same assets?

                Just trying to understand.
                My other blog is Your Organized Friend.

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                  #9
                  Originally posted by LivingAlmostLarge View Post
                  I'm just curious. I wonder if people who FIRE (retire early) get a break for college? I just wondered if they don't bother saving for college because there is a break?
                  The formula that is used for determining aid is available at THE EFC FORMULA, 20162017 You can see how income and assets affect your contribution. Just remember that the FAFSA isn't an end all be all and while it may not take into account home equity or retirement savings the college may say you are able to pay from those assets.

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                    #10
                    Also, keep in mind that FAFSA changed their timeline last year and you can now file much earlier than before. Back in October 2016, we submitted our FAFSA for the 2017-2018 school year and that used data from our 2015 taxes.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #11
                      Originally posted by LivingAlmostLarge View Post
                      I'm just curious. I wonder if people who FIRE (retire early) get a break for college? I just wondered if they don't bother saving for college because there is a break?
                      I'd say that early retirees do not get a break for college.

                      Not all type of financial aid look at assets, but any college aid I am aware of looks at assets. It's reserved for people who are poor. I don't think MMM would have ever discussed this. Our family is very MMM-ish (& I mean like for generations). Financial aid is on the complete opposite end of the spectrum of the entire MMM philosophy.
                      Last edited by MonkeyMama; 02-10-2017, 05:28 AM.

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                        #12
                        Originally posted by MonkeyMama View Post
                        I'd say that early retirees do not get a break for college.

                        Not all type of financial aid look at assets, but any college aid I am aware of looks at assets. It's reserved for people who are poor. I don't think MMM would have ever discussed this. Our family is very MMM-ish (& I mean like for generations). Financial aid is on the complete opposite end of the spectrum of the entire MMM philosophy.
                        Yes they look at assets but it doesn't look at retirement assets. Do a search on it. They are going to hit your taxable accounts like crazy but leave retirement savings alone.

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                          #13
                          What is MMM?

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                            #14
                            Originally posted by StormRichards View Post
                            What is MMM?
                            I'm glad you asked because I thought I was just out of the loop. I searched it and it came up as good ole 3M and then some frugal way of living site but I wasn't sure that was it.

                            Comment


                              #15
                              Originally posted by StormRichards View Post
                              What is MMM?
                              I'm assuming it stands for Mr. Money Mustache, a site dedicated to early retirement.
                              Steve

                              * Despite the high cost of living, it remains very popular.
                              * Why should I pay for my daughter's education when she already knows everything?
                              * There are no shortcuts to anywhere worth going.

                              Comment

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