How does most of America pay for these elite schools?

[Anonymous]

Anonymous wrote:

Anonymous wrote: Loans

No 18+ can get such big loans. It has to be parent plus loan.

and? That's what a lot of families have to do.

[Anonymous]

People who pay a fortune for college usually made a conscious decision to attend the most prestigious school they were accepted to.

In most cases, a lower-ranked school will offer greater scholarships to students they know will be admitted to higher-ranked schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get that most people on DCUM have $80k saved per year of college and much of America (HHI under $125k) gets aid but do these two realities really cover these gigantic pools of applicants to all the top 50 schools? has the rest of America also saved $80k/year/kid? am I missing something? thinking about this tonight as friends of ours just had their daughter (one of 6 kids, first in college) commit to Carnegie Mellon. I know for a fact that they make more than $150k but I had no idea that $&0k/year was in their budget.

Responsible parents save for their kids' education.

I’m a responsible parent but I don’t make enough to save much. I’m a single parent and a teacher. I have about $5K saved with two years left before college. I make around $70K. Plenty of parents don’t make enough to save for retirement and college. I took out loans and paid them back and so will my kid. That doesn’t make me an irresponsible parent.

PP, if your kid gets into a top private school, they will have a full ride / no loans.

It would be nice if University of Richmond does what UChicago does with admitted kids of CPS teachers: full-tuition scholarships. They also have some scholarship monies set aside for children of the city’s first responders.

Please. People who choose to be teachers know what the salary will be, it isn't like it decreases every year. Plus, get a summer job to make some tuition money.

I earn $80K and that includes my summer earnings. Why do you assume a single parent teacher doesn't work in the summer?

[Anonymous]

Anonymous wrote:By saving very aggressively in Coverdells and 529s since birth we have saved almost enough to send DC to college with no loans (large OOS public—not elite, but expensive nevertheless) and could easily pay for four years in-state. We live frugally and make saving a priority. I think the financial aid/saving conversation should start much earlier in life but in my area many parents do not realize this until it’s too late.

We live frugally and are huge savers too. Still can't afford to send our kid to a school anywhere near $80k. Trying to frame this as an issue of personal moral or something...if only ya'll would've been more responsible!! more frugal! just make saving a priority!!!....is silly and makes you sound pretty sheltered, frankly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here is one example. There is massive discounting based on income (financial aid):
Williams College Tuition & Expenses
Tuition and fees $59,660 (2021-22)

Net price for federal loan recipients (2018-2019) $19,480

Net price by family income (2018-2019)

FAMILY INCOME AVERAGE COST
$0-$30,000 $2,498
$30,001-$48,000 $2,223
$48,001-$75,000 $7,134
$75,001-$110,000 $14,653
$110,001+ $40,664

https://www.usnews.com/best-colleges/williams-college-2229/paying

I guess the takeaway is that if you make $111,000 and your kid is going to Williams you need to lobby for a salary cut.

This actually presents a great explanation of why probably everyone on the above scale would need loans. Even the $30k person has to pay for room and board on top of Tuition and expenses, so it's $2,500 + $10,000? (I am probably lite)...the $30k person likely has zero saved...so that is $50k in loans for the kid

The $115k family is really screwed. They have to pay $40,664 + $10,000 - $50,664. $115k after-tax is probably $80k.

The prices are average. So, $40,664 is an average price for those with income >$110K. That's why there is such a jump at $110K.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We saved like crazy. We didn't buy into the DMV mentality that says you have to have a posh house, 3 expensive vacations per year, and the highest-end purse/car/electronics. I didn't put my own high-cost education (paid for by my parents' second mortgage and lots of my own borrowing for grad school) to good use rather than getting caught up in the SAHM culture. No family money whatsoever - my parents sacrificed a lot so that I could get a great education and I'm thrilled that I can do the same for my own kids.

So your parents sacrificed so you could get a great education, you have now sacrificed so your kids can get the same. Presumably they are expected to do the same for your grandkids. Personally, a nicer house and some vacations plus state schools seems like a better idea than focusing your life around making sure your kid can spend 4 years at the right school.

I was thinking this too. I know so many Ivy grads who need financial aid so they can send their kids to Ivy schools, and so on. The cycle of debt continues but I honestly think everyone is just hoping for massive loan forgiveness asap.

Do you think all these Ivy grads have school debt? Most I know do not, but they cleave onto that privilege of an Ivy degree and believe their kids also have a right to it, even if it may saddle them with debt. Saw this with SIL, basically demanding her parents pay for her kids' college educations to continue the legacy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As soon as our first son was born we started saving for college A small smoothly amount at first and increased when daycare was no longer needed. We do have 80k a year saved for him and his brothers. We do fine but have 10 year old cars. No fancy handbags, clothes, etc.

Now if we had 6 kids no way could we afford college for all six.

Good for you! It’s nice to read about responsible parents who planned ahead.

I guess you define "responsible parents" as those who can afford to save nearly a million dollars to send their three children to college!!

I guess us poors don't cout as "responsible" in your definition as there is absolutely no possible way we could accumulate a million dollars in our childrens' college fund, no matter how much we scrimp and save. What, exactly should we have cut back on? Doctor visits (those co-pays are costly)? Food (kids eat too much, even though mine are very thin)? Piano lessons (only the wealthy can learn to play the piano)?
We saved $300K for our three kids, and that's all we could afford, despite living in a small house, and not "doing fine" as the PPP self-described her HHI. Our not "fine" HHI does not allow us to be "responsible parents." Sad. We really suck because our kids are going to in-state schools, not the Ivies (even if they get in), not any private colleges because we can't afford them, even with merit aid.

You really live in a DC bubble. Most of America has a fraction of what DC parents have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I get that most people on DCUM have $80k saved per year of college and much of America (HHI under $125k) gets aid but do these two realities really cover these gigantic pools of applicants to all the top 50 schools? has the rest of America also saved $80k/year/kid? am I missing something? thinking about this tonight as friends of ours just had their daughter (one of 6 kids, first in college) commit to Carnegie Mellon. I know for a fact that they make more than $150k but I had no idea that $&0k/year was in their budget.

Responsible parents save for their kids' education.

STFU.

Gawd these self-righteous posters are sick.

We saved for our children's education!

[Anonymous]

Anonymous wrote:Most high stats kids from donuts hole families give up on elite schools and go to the in state flagship

This is us. Our HHI is $145K. We didn't qualify for much FA, despite the fact that $80K per year is more than half our HHI!! Crazy.
State schools for our kids.
Meaning, the best and the brightest are NOT going to the Ivies or the SLACs like Amherst, Williams, Swarthmore, etc.
My kids should be at these schools, but we can't afford to send them there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most of America doesn’t even apply. No one from my small town Midwestern high school ever went to a T20 college, at least not in living memory.

The kids who do take on massive debt.

Are the schools below T20 that much cheaper?

…yes. Look up in state tuition at University of Iowa.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most high stats kids from donuts hole families give up on elite schools and go to the in state flagship

This is us. Our HHI is $145K. We didn't qualify for much FA, despite the fact that $80K per year is more than half our HHI!! Crazy.
State schools for our kids.
Meaning, the best and the brightest are NOT going to the Ivies or the SLACs like Amherst, Williams, Swarthmore, etc.
My kids should be at these schools, but we can't afford to send them there.

Then why “should” they be? It’s never been the most meritorious. It’s always been the most meritorious of the rich and privileged. And the fact you seem surprised by that makes me think you probably experienced downward mobility.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most high stats kids from donuts hole families give up on elite schools and go to the in state flagship

This is us. Our HHI is $145K. We didn't qualify for much FA, despite the fact that $80K per year is more than half our HHI!! Crazy.
State schools for our kids.
Meaning, the best and the brightest are NOT going to the Ivies or the SLACs like Amherst, Williams, Swarthmore, etc.
My kids should be at these schools, but we can't afford to send them there.

Then why “should” they be? It’s never been the most meritorious. It’s always been the most meritorious of the rich and privileged. And the fact you seem surprised by that makes me think you probably experienced downward mobility.

Agree. The number of people I know who attended Ivies/SLACs but do not live as high as they did when living with their parents is not small. Most are okay, largely because they didn't have student debt and were able to get a head start on asset accumulation, so the bigger house in the nicer neighborhood, etc. But there are some who really complain or say things like "my kids should be at these schools." My guess is they were not out there advocating for lower, more equitable higher ed costs when they were in college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most high stats kids from donuts hole families give up on elite schools and go to the in state flagship

This is us. Our HHI is $145K. We didn't qualify for much FA, despite the fact that $80K per year is more than half our HHI!! Crazy.
State schools for our kids.
Meaning, the best and the brightest are NOT going to the Ivies or the SLACs like Amherst, Williams, Swarthmore, etc.
My kids should be at these schools, but we can't afford to send them there.

Did you apply for aid at these schools?

[Anonymous]

Not taking Euro vacations or buying expensive handbags isn't going to enable you to save $320K for each kid's college fund. It also won't enable you to pay for private high school in the DMV region. And driving an old car won't do it either. (BTW- Buying a 2-yr-old car and selling it after 3-4 years when its warranty runs out is almost always cheaper than driving a brand new car for 10 years once you factor in maintenance and repairs.)

In order to save $320K in an average market over 16 years, you have to put a lot more money in monthly, or you have to front load at the same time that you're paying childcare costs. Oh, and you most likely need two incomes that total about $300K. And not have your own student loans. Or else get lucky and buy a very affordable house, which I don't think is possible around here anymore.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most high stats kids from donuts hole families give up on elite schools and go to the in state flagship

This is us. Our HHI is $145K. We didn't qualify for much FA, despite the fact that $80K per year is more than half our HHI!! Crazy.
State schools for our kids.
Meaning, the best and the brightest are NOT going to the Ivies or the SLACs like Amherst, Williams, Swarthmore, etc.
My kids should be at these schools, but we can't afford to send them there.

There are enough "best and brightest" to fill the top seats at a lot of colleges. Stop buying into lie that there are only a handful of "best" schools too. Your own child proves to you it isn't true. (Don't show that chip on your shoulder in public.)