No kayak to use, so let me ask different questions with a new thread and a better subject hopefully.
My objective is to learn more about the financial aid: whats more important, income or asset? whats counted as asset(I know each school is different)? Do they use DTI? If they do, what is the DTI for each school? I dont have the real numbers to use, even if I do, its not productive to plug in the numbers in more than a couple of sites.
Which aid formula (algorithm) is used at what school? In the Institutional Methodology, items like home and business equity are scrutinized closely (is it true?), often more intensively than in the formula used by most universities, the Federal Methodology. Does the Federal method exclude retirement assets and home equity, while the Institutional method may not?
Is DTI used in college affordability calculation (or other similar ratio to evaluate affordability)? In mortgage world, debt-to-income ratio (DTI) is used. There are two main kinds of DTI: front-end ratio and back-end ratio. For example, conventional financing limits are 28/36. If a mortgage company estimates that one shouldnt pay more than 28% of income towards housing cost, what does a college expect parents to pay? Maybe, colleges dont care much about incomes and thus dont care about DTI.
I did played on few financial aid sites for different schools. Some of them asked home equity, some didnt. Some of them asked age of the older parents, most didn't. Some of them asked saving accounts separately from the stocks and CD, most of them didn't. I didnt take notes (I was only playing..) and now dont remember which is which. I know many of you had gone through this exercise in the past 1-2 years and now are all experts. If you could share any of the formula, algorithms or the attributes that were different amongst those schools, Id greatly appreciate.