How does parents age factor into financial aid?

[nopenopenope]

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My parents are both nearing 70, been retired for a few years. They've got considerable savings after many years in the workforce, and the sale of my childhood home last year, but won't have any new income coming in from here on out. They've very generously agreed to pay for ~ a year's worth of med school, but want to save as much of their nest egg as possible to live off of.

Will parental age and lack of future earnings be factored at all into institutional (need based) financial aid? Is it even worth applying for need based aid?

Not hoping for much, but would obviously be nice to offset three years of tuition worth of loans a bit if possible. Thanks for any info on this slightly mysterious (and stressful) process!

 

[Pastamahn]

Just one school's info on the subject

http://studentservices.weill.cornell.edu/sites/default/files/officialfinancialaidhandbook.pdf

FINANCIAL AID ELIGIBILITY

The Medical College's financial aid funds are need based.
Students and their parents bear the primary responsibility
for financing the student's medical education. All accepted
students have "merit" and no differentiation is made among
them for financial aid. The college is unable to assume the role
of substitute forthe family and thusdoes not recognize any student
as "independent," for institutional funds regardless of age or prior
independent status. However, as of July, 1993 all medical students
are considered "independent" for federal loan programs.


STUDENT/PARENT CONTRIBUTION
We review a student’s income and assets as part of the need analysis. A minimum c
ontribution of $1,000 from earnings is expected for 1st and 2nd year students.
The parent contribution takes into consideration parental income and assets,
age, number of dependents, taxes, retirement needs and unusual medical expenses.
Verification of siblings in school is required and will be done in the fall of each school year.

Do that many people have their medical education funded or partially funded by their parents that parental contribution is always considered? I never thought parents contributing significantly to med school tuition would be that common but I guess I am wrong.

 

[Mansamusa]

Do that many people have their medical education funded or partially funded by their parents that parental contribution is always considered? I never thought parents contributing significantly to med school tuition would be that common but I guess I am wrong.

I think it's part that and part everyone being screwed into a ton of loans

 

[DokterMom]

Do that many people have their medical education funded or partially funded by their parents that parental contribution is always considered? I never thought parents contributing significantly to med school tuition would be that common but I guess I am wrong.

I think many parents (those who can) plan well in advance for their children's college -- 4 years, public or private. Most probably do not plan for graduate school beyond that. Further, many parents of med school-age children are facing down their own retirement years and often also the declining health and possible long term care needs of their parents. So being able to fund medical school for Jr. is likely to be somewhat rare. Others may also have the mindset that Jr. will be doing pretty well financially after graduating, so should have some financial 'skin in the game' as well.

 

[ridethecliche]

I think many parents (those who can) plan well in advance for their children's college -- 4 years, public or private. Most probably do not plan for graduate school beyond that. Further, many parents of med school-age children are facing down their own retirement years and often also the declining health and possible long term care needs of their parents. So being able to fund medical school for Jr. is likely to be somewhat rare. Others may also have the mindset that Jr. will be doing pretty well financially after graduating, so should have some financial 'skin in the game' as well.

This.

Depending on parent age/finances, I think that the best thing to do if parents are able to is to provide a no or super low interest loan to jr for med school. That way parents are still able to help and jr gets off easy.
This would still be really rare though since it's a significant amount of money.

 

[Pastamahn]

That all makes sense, I guess I just don't get how it seems some medical schools at their financial aid presentations seem to expect parental/familial contributions to be super high. I also might have not fully understood said presentations, though, because as of now I am not much of a financial person.

 

[ortnakas]

Need- and merit-based need are both relatively rare things to find in med school-- so this is probably not a major factor in determining your financial aid package. The generic federal loans cover cost of attendance, and just about everyone* is eligible for those. If your parents can cover a year, that's one less year's worth you have to borrow.

*was going to say everyone, but I'm not a financial aid expert and there's probably some exception I don't know about

 

[RuggerMD]

Will parental age and lack of future earnings be factored at all into institutional (need based) financial aid? Is it even worth applying for need based aid?!

I'm in the same boat as you. I've been told by two schools that no, it doesn't matter how old your parents are or how close they are to retirement. If they are retired, their savings will be counted as assets. Need access is pretty thorough at figuring out how much your parents have squirreled away and including that in their calculations. I think it is worth applying to need based aid because maybe you'll get something, but yeah don't go in with high hopes.