<p>Vasser is now close to 50k a year. What would be your guess as to the percentage of the students whose parents are paying the full rate at these high end schools. These costs even seem to be WELL beyond the reach of families making 100k to 150k per year. I mean how much do you have make to afford these places?</p>
<p>Vassar always has been an elite school in the full sense of the word. (As have been most of the Seven Sisters and Ivies. ) </p>
<p>What's more troubling to me are tuition/fees hikes in public universities (Boulder is asking 14% for next year.) There is a serious problem when public education in the world's richest country becomes beond the reach of middle-class families.</p>
<p>On average, you need to make roughly $165k. At that rate, your assets, on average, will be between 4X and 6X the national average. No college expects you to pay for college out of current earnings, but out of past or future savings. At Vassar, 54% of attending students do not qualify for any need-based aid, which means average student family income is likely approaching $200k, or at least 3X the median income. </p>
<p>For those paying full freight at the prestige schools, colleges are at the least expensive point in 28 years, and as incomes/assets of those in the top 3% (who make up roughly 50% of students attending) are growing faster than COA, they are getting cheaper all the time.</p>
<p>The problems are at the state unis were middle income (middle quintile is $43-$65) and lower income (below $43k) folks are being priced out of the market.</p>
<p>A large number of private schools are reaching or have exceeded the $45-50k range. A family's EFC is dependent on a lot of factors but an income of somewhere around $125k will result in an EFC of this amount. Maybe that works if you have that sort of income in a low cost of living area, but for many families the high income corresponds to living in a high cost area.</p>
<p>Colleges assume that families pay for college from past, present and future earnings -- that you saved money for the last 18 years, that you can use present cash flow, and that by taking out loans, you'll pay in the future. Many families have legitimate reasons why they didn't save and why they can't tap into current earnings. </p>
<p>However, many families who have been earning $100-$150,000 for a number of years saved enough money and are willing to cut corners and take out loans to pay for college, and so are able to pay $50,000/year. </p>
<p>I'm not disagreeing that the cost is escalating and that the amounts are getting very high. However, the amounts shouldn't be too surprising -- newspapers run stories every year about college cost increases.</p>
<p>"high cost area" merely means that, if you own a house, your assets have risen very rapidly, with big tax deductions, without you contributing anything to warrant it.</p>
<p>"I'm not disagreeing that the cost is escalating and that the amounts are getting very high."</p>
<p>Well, I'll be happy to disagree. The relative costs are NOT escalating relative to the income/assets of the core market (the full freighters). What has risen are expectations of those who are not in the core market who want their kids to attend. (Hence the rise in applications.) And many, many will do virtually whatever it takes to send their kids, bellyaching all the way, and the colleges are quite happy to accept their money.</p>
<p>what I hate are the state universities that don't announce their price hikes until well after deposits and commitments have been sent-</p>
<p>to quote katliamom:
"There is a serious problem when public education in the world's richest country becomes beond the reach of middle-class families."</p>
<p>yup, this is sad. even when you consider that the actual expenditure per student at publics and privates is often way higher than what the full price tag is (at private schools, even those paying full freight are still getting significantly subsidized), it is still scary to see costs rising. </p>
<p>then again, funding for higher education isn't really a priority for the current national government, nor has it been for decades - the national government has been shrinking its expenditures on higher education year after year, failing to keep up with escalating costs of educating our students. so who does the burden get passed on to? mom and dad and student.</p>
<p>Public education has ALWAYS been a state responsibility. And that's fine.</p>
<p>I was shocked to see how much a UC costs today and I can't imagine how a midle income family can swing one.</p>
<p>Mini, I don't think "high cost area" necessarily equates to a rapid increase in assets. We live in NY state, paying some of the highest taxes in the US, very expensive gasoline prices, etc. yet upstate, our house (our only asset) is barely worth more than we paid for it 18 years ago. And we are trying to sell it in a market where nothing is selling, hoping we can send our last two kids (of five) to college. Very scary. We've already borrowed against future earnings for the first three kids, and still have these two to go. And we aren't spring chickens!</p>
<p>Sure, some people had houses that they bought for $100K that are now worth $800K, or jobs that used to be $25K that now pay $150K, but that is the exception (for certain parts of the country), not the rule.</p>
<p>I live in an average cost area, and my gasoline costs well more than yours does. Our food costs are higher too (reflecting energy costs). We have very unprogressive sales taxes funding expenditures, meaning that middle income folks pay more in taxes than those in income-tax states. </p>
<p>If the kids are going to a private college, no one held a gun to your head. Likely, 30-40 years ago, you wouldn't have dreamed of sending them there. If they are going to a public, and your income is at the median ($53k), you have serious problems.</p>
<p>How much is your gas, per gallon, Mini?</p>
<p>Recently, around $3.20, which is second highest in the country, after Hawaii (according to the surveys, if they are to be believed.)</p>
<p>Nationally, gas prices are up exactly nine cents on average from a year or so ago, or an increase of roughly 3.3%, much, much less than the average increase in income and assets of those paying full freight for private colleges.</p>
<p>I think you are underestimating the incomes of the people sending their children to private colleges at full freight. </p>
<p>There are approximately 2.8 million high school graduates in the US in 2007 (source: WICHE). 1.5% of households earned $250,000 or more in 2005 (US Census Bureau) which you could assume increased to about $270,000 in 2007 with 4% inflation. 1.5% times 2.8 million equals 42,000 graduating seniors coming from households with income of $270,000 or more (sometimes MUCH more). This is the core market for full pay students at private schools. </p>
<p>With $270,000 as a minimum, the "average" income of this group is much higher - I don't have time to do the research but I imagine it is as high as $400,000. This is why there are so many families willing to pay full tuition, and why the colleges can get away with such high sticker prices. There are still many more students chasing these seats than there are seats available.</p>
<p>What I said was that the minimum income (assuming median assets) for a full-freighter would be around $165k. The median income of the full-freighters is much higher. (I did try a logarithmic spread, based upon the income distribution of those earning more than $165, and the percentage of those, by school, that are full-freighters (which of course wouldn't be wholly accurate, because there are certain schools with reasonable percentages of students with lots of "old money" behind them.) I came out with something like $275k at Williams, $225k at Amherst, $200k at Swarthmore, etc. But I can imagine these being higher. </p>
<p>What is different now is that far more parents (with incomes percentile wise well lower) now think their kids should be in this company.</p>
<p>My house is worth at least twice what I paid for it, but what good does it do me? Every other house in the area now costs twice as much. We can't move without changing jobs and schools.</p>
<p>No, but you can take out a 30-year (and, nowadays, even a 40-year) mortgage. Of course, no one holds a gun to your head, and you live near New York City, an area which is filled with excellent state colleges and universities (not to mention the City Colleges). </p>
<p>(Try doing that if you live in the very same neighborhood, or work as a cleaning lady in that neighborhood, and don't own a house.)</p>
<p>Our gas is $3.06 for 85 octane at Costco. The housing market has been very, very affordable for the past 10 yeas, but about 3 years ago something happened and prices started going through the roof. While most of the country has seen the deflation of a housing bubble, our houses are averaging 15% increase yearly and still going very strong.Taxes are rising. But our wages are not growing. Partially , the reason why this area is seeing tremendous growth is the affordability of the work force.
State colleges are increasing tuition by 10 -15% ach year!</p>