Annual Income
Income means pre-tax earnings from wages, personal investments, and business investments. The formula that determines a family’s ability to pay considers other expenses than the IRS uses to calculate taxable income. Therefore, all tax schedules must be submitted. If parents/guardians reside in separate households, the income and expenses of both households are considered in the calculation.
Assets
If a family has major assets, savings, land holdings, or investments, the formula computes an income supplement that is added to the gross income. 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. 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 family's tuition assistance plan takes into account the number of family members (including adults) attending any tuition-charging elementary school, middle school, high school, or college.
Unusual Expenses
The formula for determining the parent/guardian contribution for educational expenses takes into account certain “unusual expenses” such as care of an aging grandparent, parent/guardian educational loan payments, legal fees, closing costs, and other expenses listed in the tuition assistance application.
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/Guardians
Tuition assistance is based on the family’s ability to pay as demonstrated by the information submitted in the tuition assistance application. Both custodial and non-custodial parents/ guardians (regardless of legal settlements) who are divorced, separated, or never married are required to submit a separate application.