"free tuition for people making under $x" is problematic

[Anonymous]

STFU. Either your kids are lucky enough to not need financial assistance, or smart and talented enough to earn a scholarship. Which one is it?

[Anonymous]

Maybe colleges should take a page from Deerfield Academy boarding school.

Their formula is that nobody pays more than 10% of income (yes, they will take into account significant assets but not home equity).

So, families up to as much as $800k may get something. Now, typically those families have significant assets and don’t receive anything, but they said quite a few $500k families are getting aid.

As they raise tuition, the formula automatically adjusts.

[Anonymous]

The biggest issue is that tuition is tens of thousands of dollars too high almost everywhere. If you fix the root of the problem, then you don’t even have to worry much about aid.

[Anonymous]

Anonymous wrote:Maybe colleges should take a page from Deerfield Academy boarding school.

Their formula is that nobody pays more than 10% of income (yes, they will take into account significant assets but not home equity).

So, families up to as much as $800k may get something. Now, typically those families have significant assets and don’t receive anything, but they said quite a few $500k families are getting aid.

As they raise tuition, the formula automatically adjusts.

This actually sounds reasonable. Just like taxes should be a flat percentage, so too should college.

[Anonymous]

Anonymous wrote:Maybe colleges should take a page from Deerfield Academy boarding school.

Their formula is that nobody pays more than 10% of income (yes, they will take into account significant assets but not home equity).

So, families up to as much as $800k may get something. Now, typically those families have significant assets and don’t receive anything, but they said quite a few $500k families are getting aid.

As they raise tuition, the formula automatically adjusts.

OP Sure. Try this. I think there must be 100 ways of handling this. I'd like to see some school try something else. I also like the idea of taking a small percentage of all assets, not just non-sheltered assets. The thing is, I could tap my paid off home. And my retirement isnt' completely inaccessible to me (you can use your roth for kids education, at some income levels. or you can take out loans knowing I'm just a couple years away from being able to access it tax free)

[Anonymous]

The Deerfield model is at least coherent. Right now elite private colleges are saying “we want the best and the brightest, so we make our product free and/or price it on a sliding scale,” but also and at the same time saying “it doesn’t matter how great your kid is, our school is a luxury good like a sports car, and if you can’t afford it your child shouldn’t go.” Like, pick a lane.

[Anonymous]

The irony is, many of us with pell-grant-receiving, brilliant, hardworking children are holding our noses as we watch them apply to these very generous schools -- because we know that if they are were lucky enough to receive an offer, we're not in a position to turn them down.

But we'd much, much prefer them to go to school with middle-class kids at a public institution.

But when we're scraping for groceries and gas, and we know that T20 schools will cost much less than our in-state publics, it's not really a choice.

And to be clear, the reason we don't love the idea of T20s for our kids is encapsulated by the wild entitlement, greed, whining, and lack of gratitude and graciousness in this thread. It genuinely makes my skin crawl.

Nearly two thirds of this country is living paycheck to paycheck. Over sixty percent! You don't think the unwashed masses work as hard as you do? You don't think their kids aren't as smart or smarter?

Deep down you resent it because you know that you deserve none of it. Not because there's anything wrong with you, in particular. But because it's wrong to benefit from a system that makes wage slaves and paupers a feature-not-bug.

[Anonymous]

Anonymous wrote:I wonder if this is a private HS issue. Very very few kids from our diverse public HS are choosing private college. Even the “wealthy” kids. We might have 5 or fewer per year. Everyone else is choosing in-state (VA) or OOS public, many with lots of merit.

Frankly I call BS. There are certainly a lot of kids that fit into this but the very few kids part is not right. At our diverse public the top 10 kids all went private.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If retiring early means my kids go to college for free, I’m in. So much of my after tax income will be going directly to tuition for the 3 years I will have both in school that I don’t think there’s a financial benefit to working.

I will run the numbers, but this is a serious consideration.

You need to really investigate the “typical assets” situation. I did retire early for reasons unrelated to college costs, bringing our HHI (at least at the moment) to just over $200k, and the NPCs are coming out at “lol! First deplete all your assets.”

Are you bitter for being rich?

DP here. Nobody wants to pay more than the next guy for the exact same product. Can you imagine if cars or houses had variable pricing based on income? This Honda Accord is $35k if you have a good salary, but don’t worry it’s free if you don’t.

This is a great way to explain this issue.

[Anonymous]

I want my kid to go to school with kids whose parents are educators and artists and social workers and work for nonprofits and take pay cuts do to mission-driven work.

Can anyone please direct me thanks

[Anonymous]

Anonymous wrote:

Anonymous wrote:Does this mean that if you have a house that is now worth $750,000 but you make under $200,000 a year that you will not qualify for free tuition?

Depends how much equity you have in the house. But generally yes, the school will expect you to take out a second mortgage (and/or simply sell the house and downsize).

That's how people who earn, frugal and save are pushed back to lower tier.

[Anonymous]

I have no idea why home equity is excluded.

[Anonymous]

College should be free for all with a 4 year mandatory public service job. Parents shouldn't have to pay.

[Anonymous]

Do retirement plans count as "assets"? If so, very few families would qualify for under 200k ...

[Anonymous]

Anonymous wrote:I want my kid to go to school with kids whose parents are educators and artists and social workers and work for nonprofits and take pay cuts do to mission-driven work.

Can anyone please direct me thanks

Your state school.