If I am full pay, am I a sucker?

[Anonymous]

Another full pay parent here who understands. I sometimes think we are the biggest suckers ever, then i think we are lucky that we are able to afford it on two regular DMV salaries (fed and contractor) through dedicated saving, living below our means and prioritizing education. Plus it's a HA with a very specific program that my kid has been working for. Mostly I have made my peace with it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you're full pay at a top 20 school, that means your income is in the top 0.5%.

More like top 5%. Need-based aid cuts off at ~$200K for top schools. The top 5% earn about $250K annually.

Top 5% is much higher than $250k when people are living in large expensive cities.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you're full pay at a top 20 school, that means your income is in the top 0.5%.

More like top 5%. Need-based aid cuts off at ~$200K for top schools. The top 5% earn about $250K annually.

Top 5% is much higher than $250k when people are living in large expensive cities.

Yeah. Maybe $250K is closer to national average.

[Anonymous]

We only make about $160K, and we're going to be full pay because we have a lot of assets (we're good savers). It won't even be for a great school because my child's scores are just average. I do feel fortunate that we are in this position rather than have to take out loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you're full pay at a top 20 school, that means your income is in the top 0.5%.

More like top 5%. Need-based aid cuts off at ~$200K for top schools. The top 5% earn about $250K annually.

Top 5% is much higher than $250k when people are living in large expensive cities.

Yeah. Maybe $250K is closer to national average.

$250K would put you in the top 7% for the DC metro area. Check out the NYTimes interactive map:

https://archive.nytimes.com/www.nytimes.com/interactive/2012/01/15/business/one-percent-map.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:You’re a sucker in the sense that your full pay is subsidizing other kids. But at your alleged salary, it’s no big deal, right? In any event, try to adjust your attitude to understanding that there are those less fortunate than you are.

This is such a myth. Full-pay families are not subsidizing other kids because the cost per student is far more than the sticker price. Actually educating a student at an elite college costs $100K+/year. At these schools (the elite ones that don't really offer merit aid), the difference between tuition and the actual cost is paid for by interest from enormously large endowments.

FWIW, I know that we are likely to be full pay parents, but I don't consider ourselves suckers. As one PP noted, I consider ourselves very, very fortunate. In the grand scheme of things, it is really morally appalling and politically unsustainable that there is such a huge difference in wealth between the top 1% and the lower 90%.

Yes, but merit aid goes to the top 1% too. Some of them are great students willing to go to a less great school for a discount. Others are much more run of the mill students, whose parents just demand and get a discount. There was a great article a year or two ago on Franklin and Marshall College cutting off merit aid for these non deserving parents, and redirecting the money into financial aid. It was great for the college.

Because yes, you are a sucker if other rich parents are getting a discount, but you're not.

[Anonymous]

People will judge e very parenting decision you make and this is one.I

[Anonymous]

Why would you even care if you truly make that much money? We make around that, we don't have any debt, and I would be thrilled if my kid got into a top 20 school requiring me to pay 75k a year. It's not like it's a stretch for you. It's less than 10% of your annual income.

I think this is a troll post.

[Anonymous]

I do kind of feel like a sucker when I make that tuition payment. But we are fortunate to have the money, so we didn't set limits for the sake of setting limits. If we were giving up anything but luxuries, especially if we were risking a secure retirement, it would be a different story.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You’re a sucker in the sense that your full pay is subsidizing other kids. But at your alleged salary, it’s no big deal, right? In any event, try to adjust your attitude to understanding that there are those less fortunate than you are.

This is such a myth. Full-pay families are not subsidizing other kids because the cost per student is far more than the sticker price. Actually educating a student at an elite college costs $100K+/year. At these schools (the elite ones that don't really offer merit aid), the difference between tuition and the actual cost is paid for by interest from enormously large endowments.

FWIW, I know that we are likely to be full pay parents, but I don't consider ourselves suckers. As one PP noted, I consider ourselves very, very fortunate. In the grand scheme of things, it is really morally appalling and politically unsustainable that there is such a huge difference in wealth between the top 1% and the lower 90%.

Yes, but merit aid goes to the top 1% too. Some of them are great students willing to go to a less great school for a discount. Others are much more run of the mill students, whose parents just demand and get a discount. There was a great article a year or two ago on Franklin and Marshall College cutting off merit aid for these non deserving parents, and redirecting the money into financial aid. It was great for the college.

Because yes, you are a sucker if other rich parents are getting a discount, but you're not.

OP here. Which is why I pointed out that our DS will attend a school that gives out very little merit aid...only to a handful of kids who are just over the top unique achievers. On the other hand, another school he got into gives out lots of merit aid. It was his safety though.

[Anonymous]

Do you have a lot of debt or something? Is your income highly variable?

A year of tuition and fees, even at the most expensive school in the nation, should be about 10% or less than your annual income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You’re a sucker in the sense that your full pay is subsidizing other kids. But at your alleged salary, it’s no big deal, right? In any event, try to adjust your attitude to understanding that there are those less fortunate than you are.

This is such a myth. Full-pay families are not subsidizing other kids because the cost per student is far more than the sticker price. Actually educating a student at an elite college costs $100K+/year. At these schools (the elite ones that don't really offer merit aid), the difference between tuition and the actual cost is paid for by interest from enormously large endowments.

FWIW, I know that we are likely to be full pay parents, but I don't consider ourselves suckers. As one PP noted, I consider ourselves very, very fortunate. In the grand scheme of things, it is really morally appalling and politically unsustainable that there is such a huge difference in wealth between the top 1% and the lower 90%.

I sincerely doubt the bolded part.

[Anonymous]

Anonymous wrote:I keep hearing this forum that people who are full pay are suckers. Honestly, the only way we could be not full pay is with merit. And there is little or no merit offered at the schools which our DS would like to attend. He has already been accepted at his first choice (top 20) school. Clearly, we will be full pay. But with an income of $800K plus, shouldn't we be? I don't see how anyone can call us suckers, when we make probably twice or more what most people on this forum make. He has been offered some merit at one of his safeties, but minimal, and certainly not worth the investment on our part. Still waiting to hear from some other schools.

You make $800K plus a year, and you care what people on an anonymous forum think? How insecure are you?

[Anonymous]

Anonymous wrote:Do you have a lot of debt or something? Is your income highly variable?

A year of tuition and fees, even at the most expensive school in the nation, should be about 10% or less than your annual income.

v

OP here. Income is somewhat variable, but generally our income is over $700K depending on bonus. Debt is only mortgage. Savings and Retirement is substantial as well as fully funded 509. I agree we should just be grateful and ignore the "sucker" posts. Thanks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You’re a sucker in the sense that your full pay is subsidizing other kids. But at your alleged salary, it’s no big deal, right? In any event, try to adjust your attitude to understanding that there are those less fortunate than you are.

This is such a myth. Full-pay families are not subsidizing other kids because the cost per student is far more than the sticker price. Actually educating a student at an elite college costs $100K+/year. At these schools (the elite ones that don't really offer merit aid), the difference between tuition and the actual cost is paid for by interest from enormously large endowments.

FWIW, I know that we are likely to be full pay parents, but I don't consider ourselves suckers. As one PP noted, I consider ourselves very, very fortunate. In the grand scheme of things, it is really morally appalling and politically unsustainable that there is such a huge difference in wealth between the top 1% and the lower 90%.

I sincerely doubt the bolded part.

Do you have any idea about professor salary and tenure, and president earnings? You seem very naive.