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This is kind of a myth, because the vast majority of colleges do not guarantee to meet full need of all their students, and many financial aid packages have a substantial loan components. It is also very difficult for families with incomes under 40K to provide their kids with the support and resources that are likely to make them competitive for the top colleges. So really, it is only a very small percentage of college-bound kids from that category who end up in the position to get substantial need-based aid. I mean – Harvard will give them a free ride, but how do you you get to Harvard from a poor quality high school in a low-income district? It’s not easy. </p>
<p>The vast majority of kids in that income category are looking at working their way through college, usually at a state public, and taking on substantial debt along the way.
Yes, and they will also be expected to borrow a substantial amount.
Their borrowing power is greater than those in the 60-90K range, and the aid formulas really are proportionate to their income. Just as they can afford to pay more for a monthly mortgage on a house in a nicer neighborhood, they can afford to make a greater monthly payment on a PLUS loan. They are no more squeezed than the family who makes less money, but is paying the same as they are in terms of the percentage of their available income going to pay direct costs or carry loan payments.</p>