Returning to work, EFC, NPC..- worth it?

[Hilltopmom]

I've been daydreaming about returning to work. oldest is a senior.

 

I'm a former teacher & our area has had a hard time finding people in my field this year. There's also another job elsewhere I've been eyeing.

 

But, we have 2 littles at home still who I'd need to pay daycare for (one for a year till K, one for 2 years). I may wind up waiting until they are both in school, but I'm ready to go back to paid employment & end this homeschooling, SAHM gig.

 

Anyways, I was playing around with efc & NPC this morning, hoping that my salary (which will only be in the 40s at the most) would help pay for college for oldest (and go towards retirement & paying off mortgage eventually ) but not raise our efc too much.

Yeah, no.

It looks like it would raise it enough that after paying for daycare for both kids, the rest would go to college costs that would be higher since we'd have a higher income.

 

So, wait till everyone is in public school full time to go back, I guess. Or, just work part time subbing (I wouldn't need daycare then, I have another arrangement for child care if it's just a couple days a week)

 

Just kinda bummed cause I think I'm ready to go back sooner.

 

**(Eh, I know the grass is not necessarily greener on the other side & working costs money too in my time & clothes, eating out, etc. But I'm going back regardless, it is just a matter of when. Once we don't have daycare costs, then my salary can go towards the Mortage & retirement which we need to fund)

 

Anyone else run the numbers on returning to work during the college years & find it to be beneficial or not for paying for college/ financial aid? What did you decide?

Thanks

Edited July 24, 2017 by Hilltopmom

[Crimson Wife]

Actually, many colleges will impute a salary to a SAHP and reduce financial aid accordingly. Even if the family has young children. So from a purely financial aid standpoint (not life one) you may be better off returning to work & paying the daycare if your net income is less than what the school would impute to you.

 

It all depends on whether the college uses their own institutional methodology or follows the Federal FAFSA one.

[Sebastian (a lady)]

Actually, many colleges will impute a salary to a SAHP and reduce financial aid accordingly. Even if the family has young children. So from a purely financial aid standpoint (not life one) you may be better off returning to work & paying the daycare if your net income is less than what the school would impute to you.

 

It all depends on whether the college uses their own institutional methodology or follows the Federal FAFSA one.

Really? I've not heard this one before. (Not saying you're wrong, just that it is new to me.) I know I didn't count as unemployed because it had been to long since I'd had paid work.

 

 

By that same logic driving economical cars we bought used would free up income for tuition. How I hate these games.

[Hilltopmom]

Actually, many colleges will impute a salary to a SAHP and reduce financial aid accordingly. Even if the family has young children. So from a purely financial aid standpoint (not life one) you may be better off returning to work & paying the daycare if your net income is less than what the school would impute to you.

 

It all depends on whether the college uses their own institutional methodology or follows the Federal FAFSA one.

Hmm, I've seen that mentioned on private high school sites, but not on any college ones. Aagh!

I guess ask each aid office?

[Crimson Wife]

Really? I've not heard this one before. (Not saying you're wrong, just that it is new to me.) I know I didn't count as unemployed because it had been to long since I'd had paid work.

 

 

By that same logic driving economical cars we bought used would free up income for tuition. How I hate these games.

 

Yep, it happened to me when DH was applying for financial aid at grad school. We had an infant but even that wasn't enough to get out of the income imputing. I don't know how the school arrived at its calculations for how much they thought I'd earn because it was more than my actual net income after childcare when I did resume paid work (we were able to get the financial aid adjusted based on my true salary once we knew that).

 

[Sebastian (a lady)]

Yep, it happened to me when DH was applying for financial aid at grad school. We had an infant but even that wasn't enough to get out of the income imputing. I don't know how the school arrived at its calculations for how much they thought I'd earn because it was more than my actual net income after childcare when I did resume paid work (we were able to get the financial aid adjusted based on my true salary once we knew that).

 

 

Sigh.  

[Hilltopmom]

Yikes!

[freesia]

Yep, it happened to me when DH was applying for financial aid at grad school. We had an infant but even that wasn't enough to get out of the income imputing. I don't know how the school arrived at its calculations for how much they thought I'd earn because it was more than my actual net income after childcare when I did resume paid work (we were able to get the financial aid adjusted based on my true salary once we knew that).

 

But that was for a spouse, not a parent. I,too , have seen this done for private high school, but not college.

[Milknhoney]

I would think that it depends on whether or not you are currently Pell-eligible. But even if you are, and working takes you out of Pell range, then you lose maximum $5920 for the year - and that's if your current EFC is zero. So unless the college your oldest is planning to attend offers upwards of $30k per year in institutional need-based scholarships, then working even with childcare costs sounds like more money towards college costs to me.

 

And you are looking at a college admissions job, right? Are there employee dependent tuition benefits? Because that is definitely the best way to pay for college!!

[regentrude]

Even if your salary goes towards daycare and college cost for a few years, it might still be advantageous to work:

employer may contribute to a pension plan

salary may increase depending on how many years you work for employer, so those years count

work history can lead to better jobs

ETA: forgot: you will pay into social security during those years

 

There were years when my entire salary went to DD's college. I consider it still worth to be working.

Edited July 24, 2017 by regentrude

[FaithManor]

For us our EFC is already so high that not working hurts a lot. We simply have broke the barrier where there isn't going to be any financial aid except stafford loans. So not working just means we have to meet EDC plus the gap if scholarships do not cover it on one income instead of two. In 2018/19 we will have three in college at once and we were told by the financial aid department of middle ds's that most families do not get credit for having to pay for multiple kids. So our EFC at that point will be 1/3 of dh's income!! Since we have several friends who found out the hard way that EFC was not divided by two when a second one went in but was multiplied by two (not sure if the Feds understand mathematics and family economics at ALL), the only way to make this work is for me to start bringing in some money.

 

I think if we were lower income and our kids qualified for need based aid like pell grant, then upping household income might be a detriment especially if the income was not significant.

[FaithManor]

Oh and Regentrude is correct. Some of the long term benefit for me is that my employer does matching up to 4% of employee contribution in a 401K and I will be paying into social security which will up my retirement income.

Edited July 25, 2017 by FaithManor

[MerryAtHope]

Yep, it happened to me when DH was applying for financial aid at grad school. We had an infant but even that wasn't enough to get out of the income imputing. I don't know how the school arrived at its calculations for how much they thought I'd earn because it was more than my actual net income after childcare when I did resume paid work (we were able to get the financial aid adjusted based on my true salary once we knew that).

 

 

where's a DIS-like button when you need one?! Awful!

[katilac]

Everything regentrude said. Plus you are ready to go back to work! What you want needs to be part of the calculation. Your desires have worth. 

[Hilltopmom]

Everything regentrude said. Plus you are ready to go back to work! What you want needs to be part of the calculation. Your desires have worth.

Thank you.

Turned in two resume packets this week :)

[Hilltopmom]

Everything regentrude said. Plus you are ready to go back to work! What you want needs to be part of the calculation. Your desires have worth.

Thank you.

Turned in two resume packets this week :)

[DawnM]

I am not paying childcare (although I have in the past) but as a teacher, you don't just make the paycheck.  You get state benefits, which can be big, although you don't see the return immediately.

 

Retirement is a HUGE reason I went back to work.  I get health care in retirement and a paycheck.  Yes, my salary I take home will go to college for many years, but building that fund now for those little ones will be wonderful.  I wish we had done more.

 

 

[DawnM]

For us our EFC is already so high that not working hurts a lot. We simply have broke the barrier where there isn't going to be any financial aid except stafford loans. So not working just means we have to meet EDC plus the gap if scholarships do not cover it on one income instead of two. In 2018/19 we will have three in college at once and we were told by the financial aid department of middle ds's that most families do not get credit for having to pay for multiple kids. So our EFC at that point will be 1/3 of dh's income!! Since we have several friends who found out the hard way that EFC was not divided by two when a second one went in but was multiplied by two (not sure if the Feds understand mathematics and family economics at ALL), the only way to make this work is for me to start bringing in some money.

 

I think if we were lower income and our kids qualified for need based aid like pell grant, then upping household income might be a detriment especially if the income was not significant.

 

How much do you need to make to "break the barrier" so that you get nothing having 3 kids in college?  I know for the FAFSA, with one child in college, it won't help to fill it out for financial help if you make $180,000 or more, but I don't know how much it would be for three kids in college at once.