True that same salary, but person with debt will get more?

amother

Wed, Aug 12 2020, 9:39 pm

As my kids get older, I'm paying more and more tuition, but I do get a small deduction.

I dont own a home, but I was helping someone else out with their mail and saw they are not paying as much tuition. I know they have 30k of debt and own a 1 million dollar home.

So, even though we make same salary, they have higher mortgage and debt while I cant afford a home and live very very simply(I cant spend on most things ppl here say they have) so bh have no debt.

I'm wondering, do schools give bigger deductions to ppl who have debt or high mortgage than to someone with lower rent and no debt? Even if they earn same on w2 but live differently ??,

amother

Maroon

Wed, Aug 12 2020, 9:43 pm

I own a cheap house (I moved OOT) and I'm deeply in debt because of tuition.
When I lived in NYC in a tiny apartment I wasn't deeply in debt. We had fewer expenses because no cars and no homeownership so we weren't always paying for maintenance.
OTOH 9 kids in 800 sq feet? We couldn't do it anymore.
I don't know what the answer is.
My credit cards are maxed. I don't know what will happen when schools reopen.
Hiding

amother

Yellow

Wed, Aug 12 2020, 10:09 pm

I don't know what schools calculations are. I just applied for a scholarship for the first time in my life and I am nervous they won't give it to me. I always paid full tuition but my son needs to change schools and for many reasons I only have one school that can work for this year. The tuition there is 26k a year. It is a small school but NOT special education. I just asked to pay 15k which is more than I paid his last school when I paid full. I don't know their calculations but I felt really exposed when they asked ma all my financials info.

amother

Wed, Aug 12 2020, 11:05 pm

amother [ Yellow ] wrote:

Yes, I know all about giving out all my financial info and documents....!! I hope you get the deduction.

amother

Azure

Wed, Aug 12 2020, 11:07 pm

I don't think debt usually counts unless it is incurred for special circumstances like medical bills or bankrupt. But housing payments and car payments count. So yes, if two people had the same lowing income and one bought a house and had a 3000 monthly payment vs someone else renting with a 1500 monthly payment I believe the one who owned the house woudl have less discretionary income so they would likely pay less in Tuition. You should buy a house early bc no one will tell u to go on foreclosure to pay tuition (unless it was a house truly Ridiculous to But for your income level). But if u have 50,000 in saving for an eventual house, committees will ask why you can't pay tuition if u have 50,000 in savings. I've heard many people say they need to buy a house before they have enough kids in school to need breaks. It may be diff if u have a luxury house and it was irresponsible to buy it. But if u have a normal house for your neighborhood and economic level, committees consider your mortgage and taxes to be expenses they deduct before they consider income leftover for tuition. If u can buy a house you should!

amother

Wed, Aug 12 2020, 11:10 pm

amother [ Azure ] wrote:

Thanks for this. It's too late for me, but I wish I would have known this earlier.