<p>For those asking how higher income families manage to come up with the money to pay the full cost at top schools, I would suggest they think about how families manage at the other end of the spectrum. How does a family with $30,000 income manage to pay rent (or a mortgage), utilities, and insurance, and still have enough to put food on the table? They do it the same way that the high income family pays tuition - by making sacrifices, and setting priorities.</p>
<p>I have seen many characterize such sacrifices as being too much to ask. Perhaps part of the problem is that most families in the US don’t truly live within their means. Part of living within your means is preparing for the future, whether that is retirement or sending your kids to college. The choice seems to me cutting back 5% over your child’s life (18 years, plus 4 in college), or 25% each year of college. Yes, if you save that 5% over your child’s live it will be an asset, which will be hit somewhat by the financial aid formulas. But I’m sure it has been easier on us to cut back 15% (3 kids) all along, than it would be to suddenly have to cut back 25% over the next 11 years (when they are in college). As another poster has also done, we structured our mortgage to pay off last August, and when that was paid off, continued to put that money into a money market account. That account now has enough for our first year EFC. That will result in no new sacrifices for us. Other local families with similar finances are not so lucky, because they have spent rather than saved. Their EFC will be slightly lower, but they will have to borrow to pay it, AND cut back on the luxuries they’ve learned to enjoy.</p>
<p>OP, if you can’t afford to sell or borrow against your assets, then you will be in the same position as many famies - telling your child that you can’t afford unlimited choices. If those choices are of significant importance, and a high priority for you, you will find a way.</p>