Every Family is Unique
These are composite studies, each constructed with elements from a number of examples in our database. None are examples of actual Wooster families.
Case Study 1
This is an example of a family of four, with two children attending tuition-charging schools. The combined gross income of the parents is $255,000. State and federal taxes amounted to $85,000. The family owns real estate with an estimated net equity of $200,000 and has $50,000 in investments. There were no allowable unusual expenses. After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family's suggested level of contribution, the estimated family contribution for educational expenses for one child is $26,000, or $13,000 for each child.
Gross Income |
$255,000 |
Taxes |
$85,000 |
Net Assets |
$250,000 |
Variable Tuition Per Student |
$13,000 |
Case Study 2
This is an example of a family with one child and high "unusual expenses" related to the care of an elderly parent. Parental gross income is $158,000 and federal and state taxes of $45,800, unusual expenses of $40,000 and net worth of $75,000. After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family's suggested level of contribution, the estimated family contribution for educational expenses for one child is $12,000.
Gross Income |
$158,000 |
Taxes |
$45,800 |
Unusual Expenses |
$40,000 |
Net Assets |
$75,000 |
Variable Tuition Per Student |
$12,000 |
Case Study 3
This is an example of a single parent with three children, but only one in a tuition-paying school. Parental gross income, plus child support, is $84,000 with federal and state taxes of $23,000. The parent owns a home but has little to no equity to date. After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family's suggested level of contribution, the estimated family contribution for educational expenses for one child is $4,000.
Gross Income |
$84,000 |
Taxes |
$23,000 |
Net Assets |
N/A |
Variable Tuition Per Student |
$4,000 |
Case Study 4
This is an example of a family of five that is considering a tuition-paying school for one or more of their children. Combined parental gross income is $340,000 with federal and state taxes of $120,000. The family owns a home with a purchase price of $700,000 with current equity of $150,000. The family also has investments valued at $350,000. After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family's suggested level of contribution, the estimated family contribution for educational expenses for one child is $28,000, for two children, $14,000 per student.
Gross Income |
$340,000 |
Taxes |
$120,000 |
Net Assets |
$500,000 |
Variable Tuition For One Student |
$28,000 |
Variable Tuition Per Student (if two attend) |
$14,000 |
Assets
If a family has major assets, savings, or investments, the formula computes an income supplement that is added to the gross income. This income supplement varies, but usually net assets of $50,000 or less will have little impact on the computation. Home equity is based not on market value but on the price paid for the home and the years it has been owned. Generally this will undervalue the equity. The income assumed to be generated by assets also takes into account parent age, leaving retirement savings intact. For most, but not all applicants, the additional income inferred from assets is a small factor. However, if the student has assets (savings, trust accounts, etc.), the formula includes them in calculating the amount the parents can pay.
Family Size
Living allowance estimates are based on the number of people in a student’s household(s). Income is adjusted by expenditures for housing, food, or medical needs to obtain the available discretionary income.
Number of Private School or College Tuitions Currently Being Supported
A student's Variable Tuition grant is also divided by the number of family members (including adults) attending any tuition-charging elementary school, high school, or college.
Unusual Expenses
The formula for determining the parent contribution for educational expenses takes into account certain "unusual expenses" such as care of an aging grandparent, parent educational loan payments, legal fees, closing costs, and other expenses listed in the application instructions for the Parents' Financial Statement.
Other Discretionary Costs
The formula expects a family to allocate only a portion of discretionary income to tuition payments.
Divorced, Separated, or Never Married Parents
Variable Tuition is based on the family's ability to pay as demonstrated by the information submitted in the Parents' Financial Statement (PFS). Both custodial and non-custodial parents (regardless of legal settlements) who are divorced, separated, or never married are required to submit the PFS. In exceptional cases where one parent cannot comply, the custodial parent should submit a written explanation. Lack of information from either parent may significantly affect the Variable Tuition amount.
