conflict of interest?? Forum

[armysgt]

I was looking at the way YHS calculates need-based grants (the only schools that give significant need-based aid, as I understand), and basically, it's

cost - (parental + self contribution) = need --> need - loans = grants

But the way they calculate the "self contribution" part creates a serious conflict of interest on my part. The self contribution mainly consists of expending all my assets over the first two or three years in law school. Right now, I have very little assets. However, I can work this summer, perhaps as an LSAT tutor, and may be able to make around $10K in two months (this is just a rough estimate, and the work can be done part-time so that I still have plenty of chill time before law school). But the way grant calculation is structured, I have no motivation to work this summer because if I make $10K, they'll just reduce my grant by $10K, instead of my $10K going towards reducing my loans.

Do I have this right? Is this system designed to discourage me from working (or under-reporting my summer income)?

[patogordo]

technically it encourages you to spend the money before you enroll, which is not exactly the same as encouraging you not to work.

[armysgt]

technically it encourages you to spend the money before you enroll, which is not exactly the same as encouraging you not to work.

hmm.. I suppose so. Although given my original objective (reduce debt by doing some work and saving up money), the resulting dilemma is still the same...no?

[MKC]

technically it encourages you to spend the money before you enroll, which is not exactly the same as encouraging you not to work.

hmm.. I suppose so. Although given my original objective (reduce debt by doing some work and saving up money), the resulting dilemma is still the same...no?

Use your savings to buy bitcoin BECAUSE BITCOIN COULD NEVER GO DOWN and isn't technically cash.

[tachikara]

It really is kinda stupid. I quit my job early because summer earnings get counted against your financial aid, and I didn't feel bad about dipping into my savings for frivolous purchases.

That being said, you might be able to earn up to a certain amount before they start counting it against your financial aid; might be school-specific what that level is (at HLS that's $7,400 this summer, post tax: http://www.law.harvard.edu/apps/sfs/cal ... alculator/)

[armysgt]

technically it encourages you to spend the money before you enroll, which is not exactly the same as encouraging you not to work.

hmm.. I suppose so. Although given my original objective (reduce debt by doing some work and saving up money), the resulting dilemma is still the same...no?

Use your savings to buy bitcoin BECAUSE BITCOIN COULD NEVER GO DOWN and isn't technically cash.

Hahaha... I wouldn't be so sure...

It really is kinda stupid. I quit my job early because summer earnings get counted against your financial aid, and I didn't feel bad about dipping into my savings for frivolous purchases.

That being said, you might be able to earn up to a certain amount before they start counting it against your financial aid; might be school-specific what that level is (at HLS that's $7,400 this summer, post tax: http://www.law.harvard.edu/apps/sfs/cal ... alculator/)

I didn't realize that, thanks! Wow, HLS living allowance is $2400/month...which is far more than what I'm currently spending (advantages of living in my parents home). Okay, maybe I'll just work $7400 worth...

[JJ123]

Do contributions to a Roth IRA count against their limit? If not, slap everything into a Roth, then take it back out with no penalty when they're no longer looking at your finances.