We make about $180k with two kids. Is applying for financial aid pointless for us?
Parent here, posting because my son asked me to figure this out and I'm in over my head.
Our situation:
- Household income about $180k (two working parents), W-2, nothing complicated
- Two kids: our son is a senior, our daughter will start college in three years
- One house, mortgage, modest retirement savings, about $40k in a 529 for our son
- We live in a moderately expensive area
He's applying mostly to private colleges, sticker prices around $90k a year. We cannot pay $360k for one child, let alone two. Some friends say families at our income get nothing, so don't bother. Others say you always apply.
My questions:
1. Is it worth filling out the FAFSA and the CSS Profile at our income?
2. Does applying for aid hurt his chances of being admitted?
3. Is there a way to know what we'd pay before he applies?
4. What happens when our daughter starts college? Does that change anything?
We also have no idea how "assets" are counted. Does the house count? Does my retirement account count? Some articles say yes, some say no, and I'm afraid of entering something wrong and getting penalized.
For what it's worth, he has a 3.8 and a 1460 and wants to study engineering. We are not expecting merit money at the schools he likes most, but we would be open to other schools if the numbers are much better.
I'd appreciate a straight answer. I've read so many conflicting articles that I'm more confused than when I started.
Edit: Thank you, this is the clearest explanation I've gotten. Running the calculators this weekend.
- ?
Straight answers, in order.
**1. Is it worth filing?** Yes. At $180k with two children, you are in the range where well-funded private colleges can give meaningful need-based aid, and where some give a lot. Several of the wealthiest schools have announced that families under roughly $200k with typical assets pay no tuition (Harvard and MIT among them). Other schools will expect a substantial contribution. The only way to find out is to file.
**2. Does applying hurt his chances?** At most colleges, no. Many are need-blind for US applicants, meaning aid status is not considered. Some are need-aware, which can matter at the margin. Each school's site says which it is.
**3. Can you know before he applies?** Mostly. Every college that takes federal aid has to publish a net price calculator. Thirty minutes:
1. Open the calculator on each school's site.
2. Enter real numbers: income, assets, home equity, the 529, and both children.
3. Compare results. Schools with the same sticker price will give very different numbers.
4. Drop or rethink any school where the estimate is clearly out of reach.Some schools also offer a quick estimator through the College Board.
**4. Your daughter:** on the FAFSA, having more than one child in college at once no longer reduces aid the way it used to. Many private colleges that use the CSS Profile still account for siblings in their own formulas. Ask each school how it handles it.
Last point: schools without large endowments often give merit scholarships instead of need-based aid. If your son's list is all expensive privates, add a few with strong merit programs.
File the FAFSA and CSS on time even if you expect little. Many schools will not consider you for institutional aid in later years if you skip it freshman year.