Reply to What is a "donut hole family"?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I love data.

People who are saying families with $150-250k incomes aren't receiving need-based financial aid.....have you actually done a net price calculator? Has your child gone through the process and your aid award wasn't what the college said it would be on their website or places like https://myintuition.org/?

You can very quickly and easily play around on https://myintuition.org/ to see what different schools expect you to pay.

For a family with $200k HHI, $650k home value, $100k in liquid savings (cash), $1M in retirement, and $175k in non-retirement investments, schools would expect you to pay (none of these include loans):
$58k - Amherst
$51k - Brown
$59k - Dartmouth
$48k - Harvard
$52k - Williams

For a family with $185k HHI, $650k home value, $100k in liquid savings (cash), $1M in retirement, and $175k in non-retirement investments, I got the following cost (none of these include loans):
$55k - Amherst
$47k - Brown
$55k - Dartmouth
$42k - Harvard
$48k - Williams

For a family with $150k HHI, $650k home value, $100k in liquid savings (cash), $1M in retirement, and $175k in non-retirement investments, I got the following cost (none of these include loans):
$44k - Amherst
$38k - Brown
$45k - Dartmouth
$28k - Harvard
$38k - Williams

The Fed says UMC is roughly $75k-$127k HHI. Only 9% of Americans have $100k or more (on average) in savings. There's less clear data on what the average UMC person has in investment funds - most research includes it in "savings." So let's do this again with what is probably considered the typical UMC, and keep the house and retirement values the same (though these are really high compared to the reality of "most" Americans):

For this family -- $127k HHI, $650k home value, $60k in liquid savings (cash), $1M in retirement, $50k in non-retirement investments, colleges would expect a student/family to pay:
$30k - Amherst
$25k - Brown
$30k - Dartmouth
$14k - Harvard
$31k - Yale

The people who get "no aid" with $150k HHI are the people who have significant non-retirement assets (investments/cash). Colleges do NOT consider retirement funds in calculating your financial aid. [/quote]

This is a great post.  Thank you for looking this up.  So leads us to understand that we really are talking about people with a $250K plus HHI who get no aid from the schools.  And honestly, at that salary, it is a choice you have to make over 18 years.  Choosing to send your kids to public schools is a very good and very smart option if you haven't wanted to or een able to save.  [/quote]

Yes, exactly.  And all you need to do is get your child into one of the above schools, or another of the handful of such elite schools with huge endowments.  Easy-peasy![/quote]

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