Tuition Assistance and Savings

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Forum -> Chinuch, Education & Schooling

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amother

Magenta

Sun, Mar 12 2017, 3:19 am

If you receive tuition assistance from the school, are you allowed to have savings? My kid's school will be approximately 16k per student in elementary school. We are hoping we will qualify for scholarships bc at this point we can't afford the full amount. I'm wondering if the school will assist if I still have money in savings. (Not a ton, but enough so if I need a new roof and dryer at the same time, I can buy them).
What has been your experience?

amother

Forestgreen

Sun, Mar 12 2017, 4:18 am

By us (oot) they let you have some savings. I actually have a lot in savings, close to 100k, but I don't have a house. If I had a house I'd have zero in savings. The Rav in my town said that it's ok to be saving for a house and get a tuition break. So I get a nice discount despite my nice savings account because my income is very low. If they'd charge full tuition based on my savings, I'd have no savings left by next year (6 kids ka'h) so next year I'd be asking for the same scholarship, would have no prospects of ever buying a house, and have zero cushion if one month we don't ends meet. So I'm super appreciative of the town Rav for having this foresight and allowing us a tuition break despite savings

amother

Turquoise

Sun, Mar 12 2017, 6:08 am

In my experience, no. In fact, the school we were at actually asked us to use our retirement savings. I don't fault them because having to be in the tuition committee must be a really hard job. But I felt that we were being unfairly punished because we had the foresight to begin saving as soon as we graduated from college. And bought a very do all house, had one car etc... We left for a less expensive school.

amother

Black

Sun, Mar 12 2017, 8:42 am

I think every school is different. We have about 50K in savings and get scholarships. We will need that money to make bar/bas mitzvahs, replace a roof, etc. We asked a shaila of our Rav about whether it is okay to keep saving and apply for a scholarship and he said ABSOLUTELY. People NEED some money for savings and you should definitely try to save a bit if you can even at the expense of paying full tuition was what he told us.

33055

Sun, Mar 12 2017, 8:49 am

amother wrote:

Out of curiosity, did you disclose your savings to the school?

amother

Linen

Sun, Mar 12 2017, 9:12 am

Same with me. I live OOT & do have some savings and money in a retirement account too. I also get some tuition assistance & they don't ask about our savings (at least I don't think so).

It's important & just plain smart to have savings. What if you or a spouse loses a job, has a family medical emergency, a death in the family or some other unplanned emergency? It's important to have savings for unplanned events these like this.

Many years ago I was injured and had to be on disability for a few months and disability didn't pay my full salary. Having our savings helped during times likes these. Or last year I ended up in the ER 3-4 times and my husband was hospitalized twice! Thank goodness we have good insurance, but I still had unplanned medical copays & medication expenses and all these expenses add up quickly. Or just a few weeks ago my kid needed some unplanned major dental work (root canal, crown...etc) Without insurance it would have been over $1000. Luckily I have insurance that's covers much of the cost, but not all of it, so there's another $200 of unplanned costs I had right before Pesach.

Plus I own my my own home. I specifically budget and put $ aside each month into savings for home repairs & upgrades. Things will randomly break or get old and need placement. Plus, you have to spend money on regular maintenance. That's part of home ownership. I don't have a crystal ball & can predict when these random expenses will come up. My dishwasher motor decided to die a few months ago. There was a $100+ unplanned expense. And I'm waiting for my frig or washing machine to die in the next few years. Both machines must be 15+ years old now, so we'll definitely be using savings to replace or repair those when they decide to die. Same with the spring in my garage door. It was squeaking recently and had a garage door company come look at. He said it could last anywhere from a few months to 3-4 years before it'll need to be replaced. And that's another $200-$300+ repair I think when that happens.

Thankfully, because my husband and I do our best to budget & be frugal, we put $ aside for these unplanned expenses & events every month.

33055

Sun, Mar 12 2017, 9:32 am

amother wrote:

I don't think a anyone thinks savings ate a bad idea. The question is whether the school will let you hang on to them and still give you a scholarship.

In my experience with the schools and hearing from others is they want your savings. One school Chabad in Monsey, at one point, asked the parents to pledge that the money is a loan and that they or the children will pay it back someday. I don't know the current policy, but I have the document.

amother

Aquamarine

Sun, Mar 12 2017, 9:47 am

:-( IMHO the schools should only be asking about actual, current year, cash flow items - like what will be the money that you will be receiving this year (jobs, business, parents) less what will be your expenses (including savings). Should not be relevant what you have saved up from other years. The only 'justification' I can see them in asking about savings, is if they are trying to figure out if you are lying about your present cash flows. (and unfortunately I think the tuition committees are stuck in a situation where they have to detect fraud).

That said - all things being the same - I think its irresponsible to purchase a home that I can't afford if I take into consideration that I can't pay for both tuition and taxes & maintenance. I don't think the schools should be subsidizing my purchase. That said - things change. I could have bought the house when family income was really good, and things have taken a turn for the worse.. and it would be nice if the school could 'help' at least for one year... I think if things didn't turn around economically for my family, the school would be justified in not providing assistance, and suggesting that we sell our house.

amother

Pink

Sun, Mar 12 2017, 9:57 am

I think it also matter how much is in your savings (30,000 in case of emergency or 150,000). And how much you are putting away each year while accepting a scholarship.
DH had a bad accident one year, BH he is ok now but we had lots of medical bills, he couldn't work etc for a few months. Freak accident.
Luckily we weren't paying tuition then but we have vowed to try to have enough savings so that in case it happens again we will at least be able to pay our bills! Would they give a deferral on tuition if he couldn't work if CV that happened again? (Not that he plans it but we did have some near misses that BH were ok). Rather, give us a tiny break and we will consistently pay the bill....

amother

Black

Sun, Mar 12 2017, 10:08 am

Squishy wrote:

Out of curiosity, did you disclose your savings to the school?

Yes, of course. If we are asking shailos about whether its okay we are also being honest and upfront with the school about it.

groisamomma

Sun, Mar 12 2017, 11:34 am

Our schools don't offer scholarships because tuition is on the lower end to begin with, but I do think it's unfair to make parents use their retirement funds or savings (I agree, not the kind of savings stashed away to buy a mansion) to pay full tuition. Even though it doesn't apply to me I say that as a parent that had to sell our house to pay the tuition we owed and still don't think people should have to give up their savings in this case!

amother

Gold

Sun, Mar 12 2017, 12:11 pm

Schools should not be charging the insane tuitions. Ex: 12k plus 3500 in fees. We cannot afford that!!!! If it was 7-8k then yes everyone should pay and need to dip into savings but most people cannot afford 1500 a month, per child along with other expenses in tri-state area. No I dnt think its fair to not let us save which is a neccessity to stay out
Of debt, when charging the professional parents top dollar to subsidize the rest who probably pay half.

amother

Olive

Sun, Mar 12 2017, 2:36 pm

The term "full tuition" should represent what the actual cost is for my child to be in a particular school. I don't believe it really costs 15k to educate my 8th grade son. Most likely a portion of that money is going to subsidize other students. I don't feel a school has a right to be makped with the"extra" money that is being used to cover another child.

amother

Oak

Sun, Mar 12 2017, 11:24 pm

wow! We don't have any savings and about 40% of our income goes toward tuition! Is something wrong with us??

seeker

Mon, Mar 13 2017, 12:02 am

I think the equation changes if you look at scholarships as a limited resource rather than a need-based entitlement. It does make a lot of sense on your end to say "Why should I have to dip into my retirement account for tuition, I was smart enough to start saving early so I want the benefits of that." But in the end, if the school has one scholarship available, should it go to the people with the house, savings, and retirement account, or to the single parent working hard to just cover the rent, or whatever other unfortunate situation might make someone need a tuition break when they don't have savings or something that could potentially be used to cover it?

Don't get me wrong, I think that holding onto a retirement account is absolutely the responsible thing to do. And I don't really have any great answers for what someone should do if they can't afford tuition without sacrificing the savings. It's a rock and a hard place. (though the one above who said she left for a less expensive school probably has the right idea) I'm just saying that while it leaves you in a really tough bind, I still understand the scholarship committees' rationale if they don't help you.

But no, I don't think any tuition committee is going to have an issue with savings that are enough to cover a leaky roof and a car repair.

amother

Turquoise

Mon, Mar 13 2017, 12:13 am

Seeker:
I'm the one who refused to use my retirement account and left for a cheaper school (which turned out to be better academically). I have absolutely no issue with those who really are in a tough financial spot. I do however, have issue with those who frivolously spend their money, lease cars, buy the biggest house they can, go in vacations, and then claim to need scholarship help. While I lived in a tiny house, owned one car, saved religiously when possible, etc...

I found that I was so frustrated by the situation that I had to step away. I had to get away from what I saw. I stopped looking at others, focused on my situation and made positive changes. I was unwilling to compromise on retirement savings, so I found a new school.

Something has to be done about the tuition crisis and I wish I had the solution.

amother

Seafoam

Mon, Mar 13 2017, 12:16 am

seeker wrote:

SNIP
But no, I don't think any tuition committee is going to have an issue with savings that are enough to cover a leaky roof and a car repair.

Are you sure? Our administrator was very proud to tell us about the diamond ring he had in the safe from a parent.

seeker

Mon, Mar 13 2017, 12:36 am

amother wrote:

I think something like this comes up every time we discuss tuition and financial aid and I still just can't believe it's a thing. I can't imagine any school giving a tuition break to someone with big fancy houses and cars.

@seafoam: I am not sure how your administrator's diamond ring brag (???) has anything to do with saving money for possible urgent repairs.

amother

Seafoam

Mon, Mar 13 2017, 12:40 am

seeker wrote:

He bragged about it when he told us no to a tuition break.
If he didn't allow the mom to keep her diamond ring how would he allow someone to keep their rainy day savings?

amother

Turquoise

Mon, Mar 13 2017, 12:41 am

Seeker, but they do. I'm not saying the kids are getting a free ride, but there are certainly those living above their means in terms of housing and leasing cars, receiving scholarships. But I'm well past letting it bother me. To each his own. I can only be responsible for myself.

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