Listen: Jillian Berman, Reporter And Stanford discussed on Coast to Coast AM with George Noory
"App today. It's rare for colleges to offer a peek into the complex formula. They used to determine how much they're going to ask families to pay. But recently Stanford did just that announcing that it would no longer consider the amount of equity of family has in their home. When determining how much the school expects them to contribute to the cost of college. Here's how it works from marketwatch. Reporter Jillian Berman Jillian what's up here at a handful of schools. They take a look at how much equity you have in your home and use that to decide how much financial aid. They think your family might desert. How did they do this? So it's a little bit complicated. But basically, you know, they'll look at how much equity you have in your home, and the premise is that you could tap that equity theoretically to help pay for college, and then you know, sort of based on that they they adjust your financial aid award some schools have a limit on. On how much of the equity they'll consider, and you know, maybe they'll cap it at a certain multiple of your income. So that you know that can help a little bit. If you if you have a lot of equity in your home, but you know, relatively low income comparatively you won't be on the hook for so much. Okay. Is that an accurate way to see if people can afford college arguably now, so the the the fast said, the financial aid form that the government puts out that all schools used as not include home equity of a private primary residence as one of the questions, and you know, sort of a policy choice right that the government is making saying that you shouldn't need to borrow against your home to pay for college. But a lot of elite private schools. They use a different form to calculate by natural need with many many more questions about your financial situation, including home equity. And so, you know, they think obviously that's justified. You know, it's it's hard to say in some cases, right? I mean families who maybe have a lot of home equity are arguably wealthier than families that don't but at the same time and a lot of cases, the the value of their home may be particularly high just because they're home values have increased really rapidly wherever they live. We're speaking with marketwatch reporter, Jillian Berman. Her piece is called how the value of your home could affect how much you pay for college explained the point to in your story about how wealthy families can look poor on paper. Yeah. So that's you know, that's sort of an argument that these schools will make as to why they're kind of probing more about a family's financial situation. So I mean, one example, right is students from families that Stanford or one hundred twenty five thousand dollars or less go there tuition-free? So let's say her family that we're that's sure about you. But you also, you know, have a significant amount of equity in a home that is worth a million dollars or something, you know, your wealthier than a family who just has that income. So they're sort of trying to these schools are are kind of trying to sort through that nuance. I guess thanks Jillian market watch. Reporter Jillian Berman thirty minutes. Now after the hour on This Morning,."