Reply to Do you make $400,000 a year but feel broke?

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[quote=Anonymous][quote=Anonymous]Your financial logic doesn't make sense.  If a family with $400k should save $100k first and then allocate the remainder to private school and every other living expense, and a family making only $300k should save $75k first before paying for private school, who is making an appropriate economic sacrifice?  The one with a cheaper house?  The one with more or less savings?  What about the family down the street subsisting on $250k?  Should they get large scholarships or tuition discounts?  Or smaller ones?[/quote]
I've never suggested that the family on $400k should get to save $100k and only pay the remainder towards private school.  I've said that there might be circumstances where a small grant is appropriate in this circumstance - such that, for example, they are asked to pay the majority of that $100k towards tuition, but not every last penny.  Again, this would only be plausible if we were talking about multiple kids, as any family on $400k can afford one private school tuition full stop.

So for example, let's assume for the sake of argument a family on this income can save $120k living pretty frugally in this market - i.e., a modest townhouse, late model cars, limited disposable spending.

Now let's assume that the headline tuition for their kids to attend private is $120k per year.  You really think they shouldn't receive one penny of aid?

I will note that when I received aid growing up (on about $65k HHI - probably a bit more adjusted for inflation), my parents and I were both asked to contribute (I worked part time jobs and used them to pay some of my own tuition).  However, the schools never took it so far that my parents were asked to pay every last dollar, down to having no retirement savings.  Nor should anyone be asked to do that today.

The circumstances where a family at the $400k HHI level would need any aid are probably rare, but they do exist.[/quote]

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