<p>“It makes no sense to me why non-wealthy people pay exorbitant amounts of money just for a brand-name and some social connections.”</p>
<p>Having had experience with children in both, the “social connections” are probably the most important advantage of brand name privates over honors programs at good flagship state universities. This weekend at the private, a VERY rich and powerful alumna volunteered how much she adored S1 and said that she had told him that he should speak to her when he was focusing on his job search. Now, that’s value added. S2 is also doing great at the flagship for other reasons. By contrast, D is attending a fairly selective private (one of the vaunted CTCL schools so beloved by some on this list) and it is a complete waste of money. But that’s my problem, not the school’s.</p>
<p>One should attend a school that they can afford,but i am of the opinion you get what you pay for…CC’s have a role for some,but let’s not get crazy and say they are comparable to top state schools. I also believe giving aid(merit or financial) to anyone that can afford to pay “rack rate” is unfair…Give the aid to those that need it…</p>
<p>So, if one’s parents work hard and save money and instills the same discipline in their kids such that they make excellent grades, the schools should correct that effort by denying merit aid?</p>
<p>And you also could not be more wrong, LadyDi. Anyone who claims this is truly ignorant of how need-based aid formulas work. Bluebayou has already explained this, but many folks love to repeat this falsehood to try to justify their whining.</p>
<p>One very important thing that many folks seem to be ignoring in this discussion, is the very big difference between need-based aid and merit aid. </p>
<p>The fact is that there is nothing fair about merit aid. Its purpose is not to reward top students – it is a marketing tool, nothing more. The purpose is to attract top students to that school to increase the colleges prestige & average caliber of student. The Ivies & other top privates (such as MIT, CMU, etc) have no trouble attracting the highest quality applicants, so they give little to no merit aid. This is also true of some top tier public institutions. Merit aid is not funded by taxpayers either, so lack of merit aid is not a tax that is a ridiculous claim by SAY.</p>
<p>There is usually an inverse relationship between quality/prestige & merit aid; If you attend the most prestigious U that you can get into, you will not receive $; if you want to maximize the merit aid you receive, attend a U that is slightly below the max quality you can get accepted to. This is simple market-based economics. </p>
<p>Blue is correct that all students are being subsidized to some extent. Even paying the full $50k price tag, the cost of the education is not being covered true cost is much higher, around $75-80k.</p>
<p>For those that might qualify for finaid at a Profile college, saving in a 529 account is the absolute worst thing that you can do. Unlike parental assets which are docked at 5.6%, I believe that 529 assets are docked at the child’s asset “rate.” (Unfortunately, that is not something a lot of financial planners will tell you before they take your money and receive their commissions.)</p>
<p>Nope, sorry Blue, this is one area where I have to point out that you are wrong. We chose 529 accts precisely BECAUSE they are considered parental accounts, and are treated more favorably than the student’s assets. Parents are the owners & have complete control; the student has no control, and in fact, you can change the beneficiary at any time. You can google it, but here is a quote:
“A 529 account owned by a parent for a dependent student is reported on the federal financial aid application (FAFSA) as a parental asset. Parental assets are assessed at a maximum 5.64% rate in determining the student’s Expected Family Contribution (EFC”</p>
<p>Enginox, Im afraid you missed my point entirely. We did NOT select an out of state well above (y)our financial means and we did NOT take on more debt than we can afford ($15k is the max we will borrow). Also, I am not saying I expected those universities to offer more financial aid except that the advertising they do leads people to think they will get more aid than they really do. </p>
<p>The main point is, I am refuting SAYs claim that folks in the 100-150 k salary range are getting massive amounts of aid that allows them to attend pricey schools that folks earning $250 k cannot afford because they have to pay full price. Anyone earning $250 can certainly afford any college they want. So those in that bracket should stop whining. There is nothing unfair about it, if you truly understand the facts.</p>
<p>“So, if one’s parents work hard and save money and instills the same discipline in their kids such that they make excellent grades, the schools should correct that effort by denying merit aid?”</p>
<p>Yes, that’s what i am saying…It is great when a child achieves great grades,but unless you need the $$$$,i don’t think you should get any…Give the $$$ to those who may need it…Now if your child gets the grades AND needs the money,i guess that works…</p>
<p>I think everyone should school attend a school they can afford,not cry when they don’t get $$$ to attend a school they can’t…Heck,i’d like to drive a Ferrari,but they ain’t discounting it because i need them to for me to afford it ;)</p>
<p>To thrill: "“So, if one’s parents work hard and save money and instills the same discipline in their kids such that they make excellent grades, the schools should correct that effort by denying merit aid?”</p>
<p>Um, it is clear that the school is REWARDING the effort & good grades by admitting the student into their institution. </p>
<p>See post #105 for an explanation of the purpose of merit aid. </p>
<p>Merit aid is available to virtually EVERY top student – but perhaps not from their first choice school – that’s the whole point. Merit aid is usually a reward for chosing that school over a different (potentially more prestigous & more expensive) school.<br>
That’s how it works from the economic & marketing perspective of the universities.</p>
Merit aid is usually a reward for chosing that school over a different (potentially more prestigous & more expensive) school.<br>