People with $1.2M+ homes and getting significant financial aid

[Anonymous]

Anonymous wrote:A lot of the discounted tuition and financial aid goes to teachers at the schools and I have no issue with that. Some of you need to find more serious issues to be concerned about. This is the system private schools have set up. Don’t like it, don’t be a consumer there.

The schools should offer a flat tuition rate to faculty and staff. That’s why my employer did fifteen years ago. If it worked then, it can work now.

[Anonymous]

Anonymous wrote:It’s no coincidence that lots of people who work in private schools and private colleges are subsidized by family wealth when it comes to lifestyle/housing/vacations. But their incomes aren’t high enough to cash flow the sticker prices of privates. So are you really surprised that the very same people who decide how to distribute finaid dollars have figured out how to steer those dollars to people whose situations mirror their own and those of faculty colleagues? You can’t expect their (often numerous) kids to attend only the institutions where they work (employee discount), can you?

People who work in privates should be allowed to have their kids go for free, which is what the aid should be for if that family is lower income (obvioulsy no if a teacher's spouse is very high income).

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s no coincidence that lots of people who work in private schools and private colleges are subsidized by family wealth when it comes to lifestyle/housing/vacations. But their incomes aren’t high enough to cash flow the sticker prices of privates. So are you really surprised that the very same people who decide how to distribute finaid dollars have figured out how to steer those dollars to people whose situations mirror their own and those of faculty colleagues? You can’t expect their (often numerous) kids to attend only the institutions where they work (employee discount), can you?

People who work in privates should be allowed to have their kids go for free, which is what the aid should be for if that family is lower income (obvioulsy no if a teacher's spouse is very high income).

Less than two decades ago, it was common for NAIS schools to offer a 25% tuition discount to all faculty and staff. 75% was on them. That is good enough. Be realistic when you make an ask.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We get aid for 2 kids in HS and our house is worth $1.5M. I'll tell you why.

Just having our house worth this much goes not mean we're loaded as we brought our house for less than $1M. Also, are we supposed to sell our house and move where? Our mortgage is low but property tax high. We could move far far away and pay the same mortgage with current rates and it would not mean anything as our current house is prob less in mortgage. The fact our house is worth a certain amount does not mean it's liquid assets. We still need a home!

Thankfully, FA takes into consideration logical and practical reality. It's not like we own 2 homes, drive new cars or go on fancy vacations. We can't help that our home tripled in value since owning it but it's our big savings and investment. And FA does not mean a free ride to school, it means that we pay what we can per our income.

It’s called a home equity loan. Or line of credit. Or tap 10k of your student’s 529. Do these things before asking strangers to pay your way.

Terrible financial advice to use a home equity loan to pay for tuition. Do not heed this!

Then do not ask for my money. I don’t exist to enable your inability to live according to your means.

They aren’t asking for your money. They are asking the school for its money. It stopped being yours when you parted with it. Sorry you just now realized that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don’t worry about what someone else is getting, worry about what you are getting,

The problem is people with lower incomes and cheaper houses, etc. are not getting it because of greedy wealthy people.

No. People with lower incomes and cheaper houses are not getting it because of decisions made by the school on who receives it. It’s been said like a dozen times on this thread. The schools could give free rides to people who cannot afford anything instead of partial assistance to people who can pay the remaining balance, yet they don’t. Think about why.

We know why. They want to pretend they believe in all the good values they preach but in reality they self-segregate and don't want anyone in there who doesn't look or live like them. Why would you want your kid in some of those environments?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We get aid for 2 kids in HS and our house is worth $1.5M. I'll tell you why.

Just having our house worth this much goes not mean we're loaded as we brought our house for less than $1M. Also, are we supposed to sell our house and move where? Our mortgage is low but property tax high. We could move far far away and pay the same mortgage with current rates and it would not mean anything as our current house is prob less in mortgage. The fact our house is worth a certain amount does not mean it's liquid assets. We still need a home!

Thankfully, FA takes into consideration logical and practical reality. It's not like we own 2 homes, drive new cars or go on fancy vacations. We can't help that our home tripled in value since owning it but it's our big savings and investment. And FA does not mean a free ride to school, it means that we pay what we can per our income.

It’s called a home equity loan. Or line of credit. Or tap 10k of your student’s 529. Do these things before asking strangers to pay your way.

Terrible financial advice to use a home equity loan to pay for tuition. Do not heed this!

Then do not ask for my money. I don’t exist to enable your inability to live according to your means.

They aren’t asking for your money. They are asking the school for its money. It stopped being yours when you parted with it. Sorry you just now realized that.

This. Good grief. How many different times and ways has this been said on this thread. Once you give your money to the school, it isn’t yours anymore, and the school can make whatever FA decisions it wants. If you don’t like how it allocates FA, don’t donate to the school, or do an earmarked donation for a program you support. FA recipients are not getting *your* money. They are getting the school’s money.

[Anonymous]

Anonymous wrote:I haven’t read the whole thread, but I think it makes a ton of sense for financial aid to be going to families in $1m houses. If you only have wealthy full-pay families and then low income families on FA, you’re going to have a very bifurcated student body. The schools with very high tuition will have the largest and most problematic gap, and I can easily see needing to award FA to some number of $1m home families to not end up hopelessly uneven.

You're right but there is another way. Lower list price tuition for all and targeted FA to only those that truly need it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I haven’t read the whole thread, but I think it makes a ton of sense for financial aid to be going to families in $1m houses. If you only have wealthy full-pay families and then low income families on FA, you’re going to have a very bifurcated student body. The schools with very high tuition will have the largest and most problematic gap, and I can easily see needing to award FA to some number of $1m home families to not end up hopelessly uneven.

You're right but there is another way. Lower list price tuition for all and targeted FA to only those that truly need it.

Why? I honestly don't see what is wrong with what is happening now.

This is my estimation of the current situation at our "Big3": Tuition is 55K

Full pay: 70% of the student body. This group has an average income of $800K+. It's a pretty high number--may even be higher than this.
Partial pay: 20% who get partial aid for incomes up to $400k
Full aid or close to it: 5%
Full pay on an income under $300k (those who would qualify for aid but don't apply): 5%.

This actually works pretty well. Having a flat tuition of say $35K doesn't help anyone but the 5% who currently who qualify for aid but don't apply (they will now pay $35K instead of $55K) and it HURTS (i.e. eliminates from the school) the 5% who are currently getting full aid. The 70% of the school who are currently paying $55k are not going to make decisions either way based on 20K. Frankly it's a drop in the bucket or even a rounding error for this crowd.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I haven’t read the whole thread, but I think it makes a ton of sense for financial aid to be going to families in $1m houses. If you only have wealthy full-pay families and then low income families on FA, you’re going to have a very bifurcated student body. The schools with very high tuition will have the largest and most problematic gap, and I can easily see needing to award FA to some number of $1m home families to not end up hopelessly uneven.

You're right but there is another way. Lower list price tuition for all and targeted FA to only those that truly need it.

It does seem that tuition/financial aid in some schools is being managed like the U.S. tax system.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don’t worry about what someone else is getting, worry about what you are getting,

The problem is people with lower incomes and cheaper houses, etc. are not getting it because of greedy wealthy people.

False. They are not getting it because has decided to prioritize over families. I know this is hard for you to hear.

[Anonymous]

Another major factor to consider is that the truly poor of Washington don't apply to the elite privates because they have no desire to attend them--free or not.

I work full time with poor families in DC and let me tell you-- they don't sit around thinking about how amazing it would be to schlep an hour+ each way (if they even can as they don't have cars and there isn't direct public transportation) to upper NW and go to a private school that requires 3-4 hours of homework per night in a class full of kids with parents who are lobbyists and law firm partners.

They literally don't want this. AT ALL.

[Anonymous]

I am a GS-12 Fed with a stay-at-home wife, and we live in a 4M+ McLean neighborhood that is owned by her parents (no mortgage). They also pay property taxes, maintenance, landscape, and upkeeping of the house. We are only responsible for electricity and water bills. I have three kids at two different big3 private, and they each receive about 90% of the financial aid. Her parents pay the remaining 10% of the tuition.

[Anonymous]

Anonymous wrote:I am a GS-12 Fed with a stay-at-home wife, and we live in a 4M+ McLean neighborhood that is owned by her parents (no mortgage). They also pay property taxes, maintenance, landscape, and upkeeping of the house. We are only responsible for electricity and water bills. I have three kids at two different big3 private, and they each receive about 90% of the financial aid. Her parents pay the remaining 10% of the tuition.

You're not worried about identifying yourself online?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am a GS-12 Fed with a stay-at-home wife, and we live in a 4M+ McLean neighborhood that is owned by her parents (no mortgage). They also pay property taxes, maintenance, landscape, and upkeeping of the house. We are only responsible for electricity and water bills. I have three kids at two different big3 private, and they each receive about 90% of the financial aid. Her parents pay the remaining 10% of the tuition.

You're not worried about identifying yourself online?

NP, but this isn’t really a distinction here. Lots of families I know fit this bill at my child’s school.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a GS-12 Fed with a stay-at-home wife, and we live in a 4M+ McLean neighborhood that is owned by her parents (no mortgage). They also pay property taxes, maintenance, landscape, and upkeeping of the house. We are only responsible for electricity and water bills. I have three kids at two different big3 private, and they each receive about 90% of the financial aid. Her parents pay the remaining 10% of the tuition.

You're not worried about identifying yourself online?

NP, but this isn’t really a distinction here. Lots of families I know fit this bill at my child’s school.

I actually do not think that is true and I think you are a troll-- for you to be GS 12 maintaining a 4mm home, well there is your after-tax income. I would estimate that in one of the big 3 classes, maybe 10% live in 4mm+ homes, and maybe 25% have a real estate portfolio over 4M. Also, new builds in McLean are 4M, and very few homes that would have been owned by the past generation are 4M. Property taxes on a 4M home in McLean are about 4x12 = $48,000 per year. Utilities will run about 1k per month so $12,000 per year, lawn maintenance is about 1k per month for 6 months per year, so $6,000 per year, general upkeep on a home of that size could range from 10k to 50k per year. This claim on the low end comes out to be about $76,000 per year and a GS 12 salary is 131k before taxes, so 91k after taxes. I just DO NOT believe this. Also, your wife thinks you are a huge loser if this is actually true that you are living off her parents and are a grown up who has maxed out as like a true adult with three kids as a GS12. So odd.