Beth DeCarbo

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144 appearances 3 recordings 1 series first heard Aug 2019 last heard Sep 2021

Beth DeCarbo’s voice in public audio — every appearance, attributed to the second.

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WSJ Your Money Briefing · How Home Equity Affects College Financial Aid · 7 Oct 2019 podcast

So if you have $800,000 in home equity, even if you have a middle class income, Boston College will factor that in its initial decision making.

And then other schools cap the home equity based on your adjusted gross income.

Not necessarily.

It could involve how much an endowment fund the school has.

So maybe they have limited funds or they need to distribute it evenly.

So it's more about how much funding.

funding is available for the pool of students that will be accepted.

A home equity loan is actually sent to you kind of as a lump sum, and the unspent proceeds of the loan will be counted as an asset.

So it's better to take a home equity line of credit, which is just that, a line of credit.

You only draw the money when you need it, so it's not sitting in your bank account, which looks like an asset to the school.

You know, that's really unclear what will happen.

Some schools have actually been dropping home equity from the formula, but the schools are very, they vary widely and they don't really divulge a lot of information about exactly how aid is calculated.

That's exactly right.

Those numbers change and they're not really announced.

So even in my reporting, one school that previously looked at 100% of home equity reduced that number and capped it to 1.5 times the family's adjusted gross income.

So it was a pretty significant change, but it wasn't announced as far as I could see in my reporting.

In 2010, Paula Bishop, who is a financial aid advisor, her son applied to American University.

It's a school that uses the CSS profile.

At the time they applied, her home equity was $700,000.

even though she had purchased the home for $400,000.

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