<p>I find it confusing when cc posters claim median household income in the US is 55k to 60k. If this is the case then HYPSM.. see middle class families in need of free tuition. According to their site families with income less than 75k and 60k (depending on the college) have an efc of zero. </p>
<p>What is really the median household income in the US? It seems the 55k to 60k number is quite low?</p>
<p>The median household income in the US years 2008-2012 was $53,046.</p>
<p>[USA</a> QuickFacts from the US Census Bureau](<a href=“http://quickfacts.census.gov/qfd/states/00000.html]USA”>http://quickfacts.census.gov/qfd/states/00000.html)</p>
<p>^Is that earned income before taxes? How is median household income defined?</p>
<p>All income, including public assistance and unearned income, before taxes.</p>
<p>[Median</a> household income](<a href=“http://quickfacts.census.gov/qfd/meta/long_INC110211.htm]Median”>http://quickfacts.census.gov/qfd/meta/long_INC110211.htm)</p>
<p>
</p>
<p>Most people who consider themselves “middle income” are far better off than the true median.</p>
<p>
<a href=“http://www.census.gov/prod/2013pubs/p60-245.pdf[/url]”>http://www.census.gov/prod/2013pubs/p60-245.pdf</a> page 4.</p>
<p>Page seven of the link states that married households had a median income of $75,694. This figure is more representative of the average family. The $53,046 seems low and not representative of the average family with two wage earners.</p>
<p>Middle class families ARE in need of financial aid to afford private colleges. However, consider that the vast majority of students who would qualify for admission to schools such as HYPSM come from families with incomes above the average, simply because, except in cases of kids with incredible natural drive and talent and luck, it takes financial resources to create a worthy applicant to those schools. So there are a disproportionate number of applicants from families which can afford private schools, or tutors, or standardized test courses, or music/dance/figure skating/art coaches or trips to the nationals in some such event, etc. If HYPSM wanted to fill their classes with only people who could afford the sticker price, they could do so easily.</p>
<p>However, fortunately they prefer classes that better reflect our cultural and economic spectrum, so they provide generous financial aid to students who are admitted but cannot afford the school, which definitely includes anybody at or near the current middle income in the US. I don’t know the real numbers, but I would guess that the admissions offices of these schools process some very large multiple of qualified applications from potential students above the middle income line compared to those below it.</p>
<p>I visited a Pell grant eligible website (estimates grant based on COA and efc). I put in an efc of 5080 and a COA of $10,000. This financial situation would make the family Pell grant eligible. A family with a household income of $53,046 could easily have an efc of 5080. I thought Pell grant eligible students were considered poor.</p>
<p>Yet the median household income in the US is $53,046. What am I missing?</p>
<p><a href=“http://www.collegeloanconsultant.com/pell-grant-calculator.html[/url]”>http://www.collegeloanconsultant.com/pell-grant-calculator.html</a></p>
<p>The Pell grant would be $605 at that efc. <a href=“http://www.ifap.ed.gov/dpcletters/attachments/201314PellGrantPaymentandDisbursementSchedules.pdf[/url]”>http://www.ifap.ed.gov/dpcletters/attachments/201314PellGrantPaymentandDisbursementSchedules.pdf</a></p>
<p>Pell Grant eligible students are those who have EFCs of $5081 or below.</p>
<p>The point I am trying to make is that a family earning the median household income in the US of 53,046 could easily have an efc of 5080. An efc of 5080 qualifies for a Pell grant. I thought Pell grant recipients are considered poor. If that is the case, then the average household income family is considered poor. How could the median household income family be the median and poor at the same time? </p>
<p>Sorry, if I was not clear.</p>
<p>In the US, the median income is often considered poor. </p>
<p>Welcome to a nation with gross income inequality. </p>
<p>BTW, that is the very highest EFC you can get and still be Pell eligible… and you only get $605 in Pell.</p>
<p>
</p>
<p>Here’s a good summary: [A</a> Dozen Facts about America?s Struggling Lower-Middle-Class | Brookings Institution](<a href=“http://www.brookings.edu/research/reports/2013/12/12-facts-lower-middle-class?utm_campaign=brookings-comm&utm_source=hs_email&utm_medium=email&utm_content=11319781&_hsenc=p2ANqtz--SItaIoWw58vcG7mV4xF_fHLy1F9_IHbzQWL5hLtzAN6B3IU51p3-9ly2CIeRWeostZpahBtm8yJNN2WhKDfvaJnktsw&_hsmi=11319781]A”>http://www.brookings.edu/research/reports/2013/12/12-facts-lower-middle-class?utm_campaign=brookings-comm&utm_source=hs_email&utm_medium=email&utm_content=11319781&_hsenc=p2ANqtz--SItaIoWw58vcG7mV4xF_fHLy1F9_IHbzQWL5hLtzAN6B3IU51p3-9ly2CIeRWeostZpahBtm8yJNN2WhKDfvaJnktsw&_hsmi=11319781)</p>
<p>Thanks for the replies. I often see many ccers commenting on a family’s income as being significantly above the median family income of $53,046. Yet a $53,046 income puts the family in the POOR camp. A more realistic figure to survive in many expensive areas of the US would require an income well above $53,046.</p>
<p>It would be nice if ccers were more honest about the income needed to live in certain areas of the US and not throw around the 53k figure.</p>
<p>Median is a calculated number, not a statement of the amount on which a family can survive. Because the FAFSA does not consider where you live - which is a choice - when talking about financial aid it is certainly fair to state when a family makes significantly more than the median as the reason need-based aid is not offered or is offered in smaller amounts.</p>
<p>It sounds as though you are one of those who consider lower-income families to be “lucky” because they receive need-based aid while your family, living in a higher-cost area does not. If you prefer to be one of the “lucky” ones attempting to survive on the median income in a lower cost area, there is nothing stopping you and your family from moving to a lower-cost, lower-income area to reap those perceived benefits. I predict you and your family will choose to stay put.</p>
<p>
</p>
<p>Maybe not “easily”. It’s possible, but that sounds like an awfully low EFC for that income.</p>
<p>Going back to the original question about how tippy-top colleges offer a free education to families in the 60-80k range: that’s because those schools can afford to do so. I wouldn’t use those schools’ cutoffs for full aid as a definition of “middle class” or “poor”. The tippiest of the top offer incredibly generous FA up to (in some cases) family incomes nearing $200k. Again, just because COA at, say, Princeton for a family with income of $150k is $15k a year doesn’t mean that family is middle class (though they may certainly feel like they are :))</p>
<p>alamemom,</p>
<p>Your characterization of me is way off base. I grew up poor. I know what is like to do without. I do not consider myself poor nor rich, just average. Our income is not high and we watch our pennies.</p>
<p>I do realize fafsa does not care where a family lives. My high COLA occurred well after we bought our home. I could not afford to buy my house on our family income today. </p>
<p>It is not possible to pick up and move a family to a lower cost of living area when there are jobs waiting for us. Many ccers respond with “just move” which is not a realistic option.</p>
<p>The only point I was trying to make is the 53k number puts the family in the poor house. A more realistic number in a high cost area would be closer to 80 to 90k. Trust me when I tell you we watch our pennies.</p>
<p>I think if you compare salaries to a lower cost of living area, you will find the standard of living will be the same even though we make more money. Standard of living is what is more important not actual dollar amount which can be very deceiving.</p>
<p>I’ve never seen a single CCer respond with “just move”.
I do see several that say where you live is a choice. And it is. That doesn’t mean “move”.</p>
<p>Where you live is a choice. A big part of that choice is living where you can obtain a higher-paying job. Good for you. Along with that higher-paying job comes a higher-cost of living and, by the way, better schools and opportunities for your kids.
“Realistic?” The median income is calculated using numbers, not feelings. That IS the median income and YES, many earning the median income struggle to survive. The fact that you “feel” middle class while earning almost twice the median (and yes, I am assuming that your determination of the appropriate amount to receive aid just happens to be your level of income) in no way changes that you have an income higher than the median. When you walk out the door in your own neighborhood, you feel as though you are no richer than anyone else living in your neighborhood, but - try to follow - that is because you are comparing yourself to your own neighborhood. You are ignoring the people, probably only a few miles away, living in the “poorer” areas of your own town (not to mention the rest of the US) and struggling to survive on, yes, the median income or lower (remember that 1/2 of the population earns LESS than the median).</p>
<p>You want the benefits of living in your neighborhood - the better schools, the better income, etc., but you also want the same financial aid benefits given to a median-income family living where the schools are far worse and the incomes much lower. Time to count your blessings rather than being jealous of those living in lower cost areas.</p>
<p>I am not saying, “move,” I am pointing out that those living in those lower-cost, lower-income areas would probably line up to trade places with you, even if it meant less financial aid.</p>
<p>Your 1040 has the same tax rate for a specific income, regardless of local cost of living.</p>
<p>However, if you live in a high cost of living area, you probably have more high paying job opportunities.</p>
<p>Alamemom,</p>
<p>First off you are making a lot of assumptions. A cost of living calculator compares equivalent salaries across many different areas of the nation. The point I am making is the amount of money you make can be very deceiving and the standard of living gives a more accurate comparison of a family’s financial situation. How much is left after necessities are paid is an important number. Do not make the assumption that I live in a big house, drive fancy cars, eat out, etc… Our cars are over 10 years old (purchased used). Our school district is not rated and our budget failed a few years ago. </p>
<p>You assume living in a high COLA always affords one with better schools and a higher standard of living which is not true. There are lower COLA areas with far better school districts than mine. You are trying to make sweeping generalizations.</p>
<p>I am not jealous. Again another assumption. You are interested in making this a personal argument. I am not.</p>
<p>I was not comparing 53k to 90k. </p>
<p><a href=“http://money.cnn.com/calculator/pf/cost-of-living/[/url]”>http://money.cnn.com/calculator/pf/cost-of-living/</a></p>
<p>Baltimore, MD salary of 80k is equivalent to Austin, TX of 65k for equivalent standard of living.</p>