There are many families I know who will not have enough money to pay the top college COA costs when they make $250k a year.
The main reason for this is that people don’t live for paying for kids’ colleges alone. As you move up the income ladder, as you have children, you look for a good school district, a nice house, something not too onerous in the way of a commute. I know for us, and our many children, and grandparents that were on the edge of need, a large comfortable house, easy access to work, school district, Ans it tues for kids, safety, type of neighborhood were all high consideration factors. A lot of income and assets put towards this. Most people do not halve or otherwise reduce their income in making these life style choices. In fact, they tend to skirt towards the boundaries as everyday quality of life is very important.
Saving for retirement so that current lifestyle doesn’t take a huge nosedive is also very important
So, yes, I can see how families i. High income ranges feel they cannot afford to pay over $300k for college. Most CAN. Are able to do so. But it is often not a wise financial move to make. Or quality of life move for others still living at home.
For such families, it is galling that they have to reduce current and future standard of living to give their kids opportunities at certain schools whereas those who are low income can get this coveted at such schools through financial aid.
There is often the disconnect of the fact that if they were paying for private boarding school k-12, the costs of that would also be very high. But they are getting that as “freebie” part of living in their area (whether you use or not, have kids or not) in the way of public schools.
It is unfair to students whose parents won’t pay for these top schools and they are well qualified candidates. The sole reason that their parents are deemed able to pay but won’t, makes it impossible for those kids to get financial aid when it’s not something under their control and they are considered adults for most all others financial transactions. Even at 21 , your o finances count unless you meet certain conditions. Fin aid is based on parents ability to pay till age 24. Nice rule there for colleges. No idea how they are able to make this stipulation, but they can.