It seems like unless you’re very disadvantaged (under 65k) or very wealthy, you’ll be shafted. My family is solidly middle class (i think around 175k), and we would be severely burdened paying for a school like Harvard even with their “very generous” financial aid. Any current students who can help me out here and put my mind at ease?
Not current, but D was an applicant for the class of 2009, so not all that long ago. Total family income in the same ballpark as you, but it doesn’t go that far in California. Harvard & Dartmouth offered enough aid that the total out of pocket was about the equivalent of what it would have cost to go to the University of California (where we would have gotten zilch). I thought that was very fair and felt that we were understood and treated well by both schools. Now, Dartmouth’s policies for those in our bracket changed a couple of years later, but even then it was mainly a matter of whether student loans would be required. We did not have to; today (with nothing else changing) I expect we would.
A few years ago, Harvard lowered it’s cut-off for financial aid–so you may be out of luck. 175K may well be that region you describe–too much to qualify for FA, but not enough to cover 65K in college costs. Many Harvard middle class kids are caught in that bind- unable to pay for study abroad programs, unable to land well-paying student jobs which go to FA kids, etc. It is not a pleasant situation.
Couple thoughts - at 175K per year, your family is actually in the top 5-6% of US families according to the US Census Bureau - even though I know it feels like you’re solidly in the ‘middle class’. Second, the NPC at Harvard - which is quite accurate if you don’t have any complex issues like large income-producing assets, businesses, trusts, etc - shows a family contribution of about 27K for a family of 3 with 1 kid in college earning 175K. Sticker price on tuition, room and board is a little over 60K.
Bear in mind, if you have dutifully set aside a few hundred thousand in savings, your contribution will be higher, of course.
I’m slightly more ‘middle’ than you, but we paid a heck of a lot less for H than for the other kid that went to State U.
I would suggest you run the Net Price Calculator for Harvard to see what your anticipated costs of attendance would be. As danstearns has indicated, the cost of attendance may be quite close to what you would pay for an in state public.
We didn’t consider our family “very disadvantaged” at under $65k. And $175k seems pretty high to me. But if you run the net price calculator, as others have said, you may find that the cost isn’t as much as a state school. Families of students who make $150k pay $15k as I remember. So you are not that far off.
I thought we consider ourselves a middle class with a 60K. I was wondering where did you get the idea of 175K is a middle class? I was hoping my 2nd daughter will get descent financial aid this year. My first one ended up with 60K loan and 27K a year job this year. Good luck!
@martinezrulez: I just ran Harvard’s Net Price calculator.
For a US citizen, living in New York State (my home state) with a family of 3, one child in college, grossing $175k in income per year and with $200K in savings not including home equity or money in a retirement account (both of which Harvard excludes for the purpose of calculating financial aid), the total cost of attendance at Harvard (tuition, room, board and expenses) would be $31,715.
Now, compare that to the in-state costs at New York State’s flagship (public) college, SUNY Binghamton, where making $175K per year does NOT qualify an applicant for financial aid. The yearly cost of attendance at SUNY Binghamton would be $23,648 for a New York resident. For an out-of-state resident, the cost of attendance would be $35,288.
So at your income level, Harvard is about $8,000 MORE than in-state tuition at NY State’s flagship public college and $4,000 LESS than out-of-state tuition. When you look at it that way, for your income level, Harvard’s COA doesn’t sound like a “shaft” to me!
“My family is solidly middle class (i think around 175k)”
That’s upper middle class, not “solidly” middle class.
That’s the thing about America. Everyone thinks they’re middle class. People who make $500,000 a year think they’re middle class too.
It depends on where you live. It’s all relative. $50,000 per year in Chicago is low income. $175,000 per year Chevy Chase, MD is middle class. $175,000 per year in Flint, MI is rich. I understand where you are coming from OP. My family makes a little more than that amount and with my mom working for the state and my dad working a blue collar job, I feel middle class as well. Especially with where I go to school, I feel even more middle class. Having an actually rich roommate is humbling.
I think middle class spans a great amount of ppl, anyone in between “can’t pay my rent”, and “can’t decide which Ferrari to take to my yacht club”.
Meaning between those struggling, and those who are financially set, lives the middle class. Call it what you want. Stratify it further if you like.
^^ Which is why I did not focus (or correct) the OP for his/her definition of middle class! What I would like to know: Does the OP’s family feel they would “severely burdened” to pay instate tuition at a public college, as in the example in post #7?
Rather than categorize people by their income level, the better distinction is the extent to which they can live within their means. I’d rather earn $50,000 and live debt free than earn $200,000 and always be a step ahead of the bill collectors.
@gibby that was not meant to you. Just trying to head off the inevitable argument over the definition!
Did not know H gave FA at that income level! That would be half tuition! Wow.
@HRSMom Most elite schools offer FA up to about 250k income. For example, 99% of Yale families in the 150k-200k income range qualify for FA, with an average grant of 29k! The link below also shows that nearly 60% of Yale families have more than 200k income.
http://admissions.yale.edu/financial-aid-prospective-students
Some states certainly are more expensive, and everyone’s situation is different (medical expenses, elder care, number of adults working, etc). But as a way measure middle class, I keep in mind the median household income in the US, around $54 K. Yes, it is crazy – like many schools, Harvard at full pay is more than that per year.
OP you will find good advice on this website to customize a strategy which will serve your particular family’s situation. Public schools, honors programs, merit scholarships are discussed here and may be to your benefit.
These are interesting issues. People living in wealthy areas, making 175K -300kmay describe themselves as middle class because they complain that the cost of living is higher as are the taxes. They fail to realize many people who consider themselves middle class who are making 50K simply can’t afford those ritzy areas. You can take your 175K-300K and live in inexpensive low end communities if you want. The choice to live in ritzy suburbs or low end communities is a privilege you have that many would love to have and you have that privilege because you are wealthy. So the idea that Scarsdale is very expensive so a salary of 300K makes a family middle class is absurd.
And LOL on " $175,000 per year Chevy Chase, MD is middle class." Nope. Sorry. but most people in Chevy Chase are wealthy. Is the family with $175k the most wealthy. Probably not. Funny to target a area of wealthy people and use that as the yard stick for deciding who is middle class within the wealthy group. Many of us couldn’t afford a shack in Chevy Chase! Those of you making 175-300K a year and declaring yourself middle class cause all your neighbors live in mansions must get out more!
My family was just told that we do not qualify for need based financial aid at Yale. With what my parents have worked hard to save for me, it seems that I would fall over $200,000 short of Yale’s estimated four-year cost. The financial aid office implied that they expect my parents to use funds from their retirement savings and houses (They are divorced, and both of them are still paying mortgages.) to pay for Yale. We are devastated by this news, and it is looking like I will not be able to attend. Does anyone have advice on options I can look into to make Yale affordable? Thank you.
They don’t count the house a parent is living in as an asset. Do your parents have second homes? Usually retirement plans from work don’t affect aid either, as I remember. Not sure what’s up with your situation.