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Reply to "full pay private = charity?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Full pay at a private. To avoid taking loans, I may need to stop my charitable donations (~$8k per year). I've rationalized this by telling myself that full pay at a private is subsidizing those on need-based financial aid...effectively a charitable donation (but not for tax purposes). Am I crazy?[/quote] Yeah, you are. You're not subsidizing those on need-based financial aid -- people who give to the school are. The actual cost of educating your child is higher than what they're charging you. This is crazy, but it is true.[/quote] OP here. I agree that nobody is paying the "true" full price, but they aren't charging everybody the same price. My price is higher so that somebody else's price can be lower. That's a subsidy.[/quote] So alumni are subsizing you. You are subsizing everyone who isnt paying 100 percent. The kids paying 90% tuition next year are subsidizing everyone who pays less than them. The kids who pay 80% pay for everyone who pays less than them. The kids paying 50% pay for the other half. Throw in federal government loans anyone is taking out at any of these levels, and the subsidy story is more complex. Your post suddenly changed from focusing on your concern about not being able to donate to charity anymore to talking "subsidies". Whats your real point here? (rhetorical question). [/quote]
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