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Full Pay Families Pay For Aid & Scholarships??

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Replies to: Full Pay Families Pay For Aid & Scholarships??

  • CupCakeMuffinsCupCakeMuffins 1156 replies113 threads Senior Member
    edited February 8
    No, not necessarily. Funding can come from student’s future income, set %age until they pay off their debt or work for government for a couple of years, so money can help next batches of students. No freebies, no tax hikes, no parental loans, no hikes in college cost, just help to pay it forward.
    edited February 8
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  • PurpleTitanPurpleTitan 13627 replies32 threads Senior Member
    edited February 8
    ^ That's like the UK and Aussie systems, as I understand it. But unis are all publics in the UK and mostly publics in Oz. And taxpayers will be on the hook for loans that aren't paid off.

    Now, tuition for "in-state" students in Oz is comparable to the cheaper in-state publics in the US. But tuition for "in-state" students in England are comparable to the most expensive in-state publics in the US. And remember, they're publics. Even the top-end unis in England (Oxbridge) have comparable resources to the top-end public flagships here* and can't compete with the American elite privates on resources (though obviously their student bodies are elite and they get very good profs** because of the Oxbridge/LSE/Imperial/whatever name)

    * Actually, not even, at least in the funding-extensive STEM fields. An Oxford (STEM) don who visited UT-Austin was amazed at the equipment that his colleague in Austin had access to--that he didn't.

    ** But they have trouble competing for the few worldwide superstars, which really only the rich American privates as well as unis that are willing to splurge to make a mark in a field can do.

    edited February 8
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  • PurpleTitanPurpleTitan 13627 replies32 threads Senior Member
    BTW, in the case of both the UK and Oz, "in-state" tuition is as low as it is (and it is almost zero in Scotland for "in-state" students) because of government subsidies from taxpayers.

    IMO, investing in human potential is one of the better ways to spend taxpayer money because of all the positive externalities, so I don't have a problem with that, but let's not pretend that fits your ideal (higher ed funded solely by income-based loans that isn't backstopped by taxpayers). I don't know of any such system that exists in the world.
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  • austinmshauriaustinmshauri 9847 replies377 threads Senior Member
    Funding can come from student’s future income, set %age until they pay off their debt or work for government for a couple of years, so money can help next batches of students. No freebies, no tax hikes, no parental loans, no hikes in college cost, just help to pay it forward.

    The primary goal of this seems to be to get upper-middle income parents off the hook for their kids' elite college educations. Drop the cost of school low enough so those families can afford the colleges they want out-of-pocket and let everyone else borrow or work for the government to cover their costs. If the desire was to make college affordable for more students then the proposal would be for more aid to go to low income students. Instead, OP seems shocked and upset that some colleges might already be using tuition money from full pay families to do just that.
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  • PurpleTitanPurpleTitan 13627 replies32 threads Senior Member
    @austinmshauri, well if that is the goal, the most realistic route would be by government-provided free college for everyone (you may have to nationalize all the elite privates to get them under the scheme) funded by taxes on the rich (defined as above where the OP is).

    Is the OP in favor of such a plan? Why or why not?
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  • PurpleTitanPurpleTitan 13627 replies32 threads Senior Member
    BTW, I don't see how the OP's income-based loan repayment scheme would bring down private elite list prices at all. After all, that type of scheme already exists to some extent in the US.

    No, private list prices are that high because the ability to pay is that high. And the ability to pay is that high because there is so much wealth concentrated towards the top rungs (high inequality).
    So the only way to solve high list prices would be massive wealth redistribution from the top. Also somehow forbid the elite privates from admitting rich Internationals.

    Would the OP be in favor of such a plan?
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  • CupCakeMuffinsCupCakeMuffins 1156 replies113 threads Senior Member
    It doesn’t matter what OP or any other individual thinks, this issue is much bigger than individual opinions. Like any other product, colleges too need price monitoring or they’ll keep milking everyone, if cost is high, it doesn’t only effect upper middle full pay, it makes it more expensive and tougher to pay for partial pay middle middle class as well. Their debt level goes higher.

    Here is some food for thought in this article , if anyone is interested.


    https://www.google.com/amp/s/hechingerreport.org/student-subsidies-of-classmates-tuition-add-to-anger-over-rising-college-costs/amp/
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  • CupCakeMuffinsCupCakeMuffins 1156 replies113 threads Senior Member
    It’s not that people don’t want to help others, it’s about ridiculously high speed of increasing college cost making it difficult to pay your own bills. Lower costs can help every financial tier, it also exposes colleges hoarding their endowment.
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  • twoinanddonetwoinanddone 24719 replies20 threads Senior Member
    You have to look at each school to see how it funds scholarships and grants. From the general funds, from other state programs, from endowments from alumni or corporations? At my daughter's school, the two big financial aid sources were, for instate students, a 'license plate' fund (so funded by another state agency) and for both instate and OOS, endowed alumni scholarship. The school has about 100 scholarships from these endowed accounts and when a student gets one, the thank you note goes directly to the alum/family. Instate tuition is very cheap and don't cover the cost of the education even if the student pays full price. Full tuition is about $4500. The state legislature funded about $15k per student (which is 3x what the neighboring state funded). They isn't anything left over to cover other students' costs.

    In Florida, a state agency runs the Bright Futures and Benacquisto scholarship programs. Just extra money from a state agency sent to the colleges where the winning students choose to attend. Money is not coming from other students at UF or FSU to fund these scholarships. The school may give other need based or merit scholarships, but tuition isn't high enough to cover both the paying students and other students receiving need based aid.
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  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama 84339 replies1049 threads Forum Champion
    @vonlost Those would be to colleges with mega endowments like $10 billion or higher. There are only a handful of those.

    not really. The UCs have been doing this for about 10 years now. When they hiked tuition from $8k to about $14k in one year, they admitted that they were going to use a portion of that extra $6k to give aid to lower EFC students. So effectively the full pay students are subsidizing others.

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  • CupCakeMuffinsCupCakeMuffins 1156 replies113 threads Senior Member
    https://www.google.com/amp/s/www.forbes.com/sites/jeffreydorfman/2015/07/13/financial-aid-helps-colleges-more-than-students/amp/


    “When colleges see an increase in financial aid, they respond by raising tuition. These tuition increases capture the majority of the increase in financial aid, leaving the students ahead by much less than they think. Simultaneously, by increasing financial aid the government is also making college more expensive for all the students.”
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