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[quote=Anonymous][quote=Anonymous][quote=Anonymous]2. With the same income, the EFC won't be drastically different for the two families, as assets don't count as much as income, therefore their tuition shouldn't be drastically different. This will be less true for schools that use the CSS profile. 
3. Unless their income is extremely low, neither family will likely get much financial aid at all other than loans. Student loans come with a fairly high interest rate beyond the federal loans which total $27K for four years.[/quote]
Rational response.  We have been discussing just how much assets increase EFC. Please see posts above. Define drastically - is $40k over 4 years drastic in your opinion? Let's assume that both families wouldn't max out on tuition based on income and that any difference in COA is solely due to assets. Do we agree that there are income levels for which this is true.

Even if student loans come with a high interest rate, family Spender has the option to double-scrimping over the 4 years their kids are in college and a few years after and they'll still be ahead in QoL dollar years. Obviously, under a fair system, they shouldn't be.

The reason they are, btw, is that having no assets is taken as a proxy for having been [i]unable, rather than unwilling[/i] to save due to personal circumstances.[/quote]

Parental assets are counted at a rate of about 5.x%. Income is counted at about 30-40% (assume 33%). So if two families each make $100K and one family also has $100K in assets, the Spender family would be expected to pay $33K for college. The Miser family would be expected to pay $38K. So about a $5K difference. I'm sure we can maneuver the numbers so that there is a $10K difference or a $2K difference. But here's the other thing, while many colleges ask for the EFC, most are not a "Meets needs" college which means, that the EFC means very little. Colleges look at the EFC and then offer what they want. The two families above might each be given nothing for college. Nothing. "Meets Needs" colleges are few and far between and are generally hard to get into.

In-State colleges in general are the best deals for most people and many are notoriously stingy with aid other than loans. Since this is a DC board, look at how much aid students are getting from UMD, UVA, JMU, etc. There are probably reports on this board or on College Confidential.  I have a rising senior in college and have money saved to fully pay for the equivalent of a state school. I have friends who have very little or nothing saved. One is talking about getting a job to cash flow it. Another is limiting her options of where her child can go (based on those who give good aid, financial or merit). I am fortunate to not be in that position. That is high QoL to me.

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