Top Colleges Are Cheaper Than You Think (Unless You’re Rich)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry. Forgot to add their basic premise:

Middle-class families pay a higher price, but nothing like the list price. Only affluent families pay something close to the list price. It’s true that many of these families don’t think of themselves as affluent. But they are – part of roughly the country’s richest 10 percent, with an annual income of at least $175,000 and a net worth of a half-million dollars or more. For them, a college bill approaching $70,000 can be decidedly unpleasant, yet it doesn’t reorder their lives.

I have zero complaints about our $200K HHI (although will note that it doesn't buy what it would e.g. in Omaha, notwithstanding FAFSA's indifference to such distinction), but it is not sufficient to pay full price at a school that costs $70K or more per year.

It is not a matter of "decidedly unpleasant"; it is a matter of "inaccessible."

To attend such a school, one needs to be low-income, middle-income, or in the top 1-2%.

Out of current year's income, yes, probably... but saving for 15 years from similar income? Should not be.

I suspect that for most, reaching the college years for kids coincides with top earning years. The notion that they earned 200k for 15 years is likely wrong.

[Anonymous]

Well if DH and I hadn't just finished repaying 150k in our own student loans, 70k a year in tuition after saving for 15 years could be manageable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry. Forgot to add their basic premise:

Middle-class families pay a higher price, but nothing like the list price. Only affluent families pay something close to the list price. It’s true that many of these families don’t think of themselves as affluent. But they are – part of roughly the country’s richest 10 percent, with an annual income of at least $175,000 and a net worth of a half-million dollars or more. For them, a college bill approaching $70,000 can be decidedly unpleasant, yet it doesn’t reorder their lives.

I have zero complaints about our $200K HHI (although will note that it doesn't buy what it would e.g. in Omaha, notwithstanding FAFSA's indifference to such distinction), but it is not sufficient to pay full price at a school that costs $70K or more per year.

It is not a matter of "decidedly unpleasant"; it is a matter of "inaccessible."

To attend such a school, one needs to be low-income, middle-income, or in the top 1-2%.

Out of current year's income, yes, probably... but saving for 15 years from similar income? Should not be.

+1. If you save even half the cost of a private college you may be able to afford it paying the remainder out of pocket. Our experience was that the top schools are pretty generous with financial aid even for folks with 200k HHI. This was our experience anyway.

That is the opposite of our experience.

Obviously didn’t want your kids that bad

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry. Forgot to add their basic premise:

Middle-class families pay a higher price, but nothing like the list price. Only affluent families pay something close to the list price. It’s true that many of these families don’t think of themselves as affluent. But they are – part of roughly the country’s richest 10 percent, with an annual income of at least $175,000 and a net worth of a half-million dollars or more. For them, a college bill approaching $70,000 can be decidedly unpleasant, yet it doesn’t reorder their lives.

I have zero complaints about our $200K HHI (although will note that it doesn't buy what it would e.g. in Omaha, notwithstanding FAFSA's indifference to such distinction), but it is not sufficient to pay full price at a school that costs $70K or more per year.

It is not a matter of "decidedly unpleasant"; it is a matter of "inaccessible."

To attend such a school, one needs to be low-income, middle-income, or in the top 1-2%.

Out of current year's income, yes, probably... but saving for 15 years from similar income? Should not be.

+1. If you save even half the cost of a private college you may be able to afford it paying the remainder out of pocket. Our experience was that the top schools are pretty generous with financial aid even for folks with 200k HHI. This was our experience anyway.

But they take what you saved into consideration. Wish I would have stashed the savings with my sister or parents.

Why? Are you typically a dishonest heel?

[Anonymous]

Turning into yet another "It should change to be affordable for my kid, regardless if that means other kids can't go" discussion.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry. Forgot to add their basic premise:

Middle-class families pay a higher price, but nothing like the list price. Only affluent families pay something close to the list price. It’s true that many of these families don’t think of themselves as affluent. But they are – part of roughly the country’s richest 10 percent, with an annual income of at least $175,000 and a net worth of a half-million dollars or more. For them, a college bill approaching $70,000 can be decidedly unpleasant, yet it doesn’t reorder their lives.

I have zero complaints about our $200K HHI (although will note that it doesn't buy what it would e.g. in Omaha, notwithstanding FAFSA's indifference to such distinction), but it is not sufficient to pay full price at a school that costs $70K or more per year.

It is not a matter of "decidedly unpleasant"; it is a matter of "inaccessible."

To attend such a school, one needs to be low-income, middle-income, or in the top 1-2%.

Out of current year's income, yes, probably... but saving for 15 years from similar income? Should not be.

That supposes that you are making that same income for all those 15+ years. We make that now, with two in HS and are shoveling as much as we can into college savings, but it's a very recent development.

And, many families who are making that income via two salaries by the time their kids are approaching college would have been spending what they might otherwise save for college to pay for childcare.

I suppose it is possible for income to suddenly jump dramatically, but it seems unlikely in most cases.

I do agree $200K in San Francisco is different from $200K in Omaha, and that can seem unfair WRT housing costs.

Actually, it is common. Our HHI is a little more than double what it was when DC, now 20yo, was born. It has increased over the years.

In the early years, when it was half or a bit more than half of what it is now, a big chunk of it was consumed by daycare, and housing.

This is the most common (not unlikely at all) scenario for donut hole families.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry. Forgot to add their basic premise:

Middle-class families pay a higher price, but nothing like the list price. Only affluent families pay something close to the list price. It’s true that many of these families don’t think of themselves as affluent. But they are – part of roughly the country’s richest 10 percent, with an annual income of at least $175,000 and a net worth of a half-million dollars or more. For them, a college bill approaching $70,000 can be decidedly unpleasant, yet it doesn’t reorder their lives.

I have zero complaints about our $200K HHI (although will note that it doesn't buy what it would e.g. in Omaha, notwithstanding FAFSA's indifference to such distinction), but it is not sufficient to pay full price at a school that costs $70K or more per year.

It is not a matter of "decidedly unpleasant"; it is a matter of "inaccessible."

To attend such a school, one needs to be low-income, middle-income, or in the top 1-2%.

Out of current year's income, yes, probably... but saving for 15 years from similar income? Should not be.

+1. If you save even half the cost of a private college you may be able to afford it paying the remainder out of pocket. Our experience was that the top schools are pretty generous with financial aid even for folks with 200k HHI. This was our experience anyway.

That is the opposite of our experience.

Obviously didn’t want your kids that bad

That isn't how it works at elite schools, but you keep telling yourself that.

[Anonymous]

Anonymous wrote:Turning into yet another "It should change to be affordable for my kid, regardless if that means other kids can't go" discussion.

It should be less expensive for everyone.

[Anonymous]

This forum repeats this discussion weekly. No one disagrees that college is too expensive. Practically, some of us think the tuition panic makes many greatly qualified students avoid applying to elite colleges because they can't imagine paying the sticker price. Most of the elites do not include student loans in the aid packages and many limit/ignore home equity in their financial aid calculations. There are very few truly low-income students in the elite colleges (far too many very wealthy full-pay). But the self-pity of very successful people earning in the top 10% of incomes is simply beyond me!

Why do families earning $150-250k (in the top 2-10% of incomes) deserve financial aid ahead of others? While I sympathize, I am too dense to understand why you think a family making $75-125k should get less financial aid than yours. Theoretically, we could all live on less than we earn and save more for long-term predictable things like sending kids to college. Someone dollar-cost averaging $500/month since 2000 would have about $250k after taxes and fees - enough to pay for four years of tuition at all the Ivies -- leaving just $200-250/month to pay out of current income for room, board, books, and fees.

[Anonymous]

It’s really about the middle class donut. Enjoy being a 175k family paying almost full freight and having your payments subsidize someone else’s education.

[Anonymous]

Anonymous wrote:This forum repeats this discussion weekly. No one disagrees that college is too expensive. Practically, some of us think the tuition panic makes many greatly qualified students avoid applying to elite colleges because they can't imagine paying the sticker price. Most of the elites do not include student loans in the aid packages and many limit/ignore home equity in their financial aid calculations. There are very few truly low-income students in the elite colleges (far too many very wealthy full-pay). But the self-pity of very successful people earning in the top 10% of incomes is simply beyond me!

Why do families earning $150-250k (in the top 2-10% of incomes) deserve financial aid ahead of others? While I sympathize, I am too dense to understand why you think a family making $75-125k should get less financial aid than yours. Theoretically, we could all live on less than we earn and save more for long-term predictable things like sending kids to college. Someone dollar-cost averaging $500/month since 2000 would have about $250k after taxes and fees - enough to pay for four years of tuition at all the Ivies -- leaving just $200-250/month to pay out of current income for room, board, books, and fees.

Paying $200-$250 month will not pay the $15k a year cost for room and board at college these days.

You must have meant to write $1200-$1250 a month, no?

[Anonymous]

Anonymous wrote:It’s really about the middle class donut. Enjoy being a 175k family paying almost full freight and having your payments subsidize someone else’s education.

You are NOT subsidizing anyone else's education.

You are paying your fair share for a thing you are not required to have.

Colleges want those other students more than they want you.

Unless you chose the least expensive college and went on an extensive quest for merit aid, and made your decision with that as the top criteria, you have absolutely nothing to complain about.

[Anonymous]

I'll believe it when I see it on paper. All I know is the calculator says we should get over 20k, DS got nothing at all, except that he can get a 5K federal student loan, oh and we'll be happy to give you a parent plus loan.

[Anonymous]

Anonymous wrote:This forum repeats this discussion weekly. No one disagrees that college is too expensive. Practically, some of us think the tuition panic makes many greatly qualified students avoid applying to elite colleges because they can't imagine paying the sticker price. Most of the elites do not include student loans in the aid packages and many limit/ignore home equity in their financial aid calculations. There are very few truly low-income students in the elite colleges (far too many very wealthy full-pay). But the self-pity of very successful people earning in the top 10% of incomes is simply beyond me!

Why do families earning $150-250k (in the top 2-10% of incomes) deserve financial aid ahead of others? While I sympathize, I am too dense to understand why you think a family making $75-125k should get less financial aid than yours. Theoretically, we could all live on less than we earn and save more for long-term predictable things like sending kids to college. Someone dollar-cost averaging $500/month since 2000 would have about $250k after taxes and fees - enough to pay for four years of tuition at all the Ivies -- leaving just $200-250/month to pay out of current income for room, board, books, and fees.

No one is expressing self-pity.

No one is expressing the thought that s/he deserves financial aid ahead of others.

Many people have explained why they have not saved $500/month/per child since such children were babies.

Everyone I know, including me, thinks college should not be so expensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry. Forgot to add their basic premise:

Middle-class families pay a higher price, but nothing like the list price. Only affluent families pay something close to the list price. It’s true that many of these families don’t think of themselves as affluent. But they are – part of roughly the country’s richest 10 percent, with an annual income of at least $175,000 and a net worth of a half-million dollars or more. For them, a college bill approaching $70,000 can be decidedly unpleasant, yet it doesn’t reorder their lives.

I have zero complaints about our $200K HHI (although will note that it doesn't buy what it would e.g. in Omaha, notwithstanding FAFSA's indifference to such distinction), but it is not sufficient to pay full price at a school that costs $70K or more per year.

It is not a matter of "decidedly unpleasant"; it is a matter of "inaccessible."

To attend such a school, one needs to be low-income, middle-income, or in the top 1-2%.

Plus you get the joy of paying for the "scholarships" (magic money) for the kids whose parents decided to work less hard.

Out of current year's income, yes, probably... but saving for 15 years from similar income? Should not be.