Is Financial Aid partially tuition funded?

Paying for College
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<p>A friend of mine pointed out that on the “Financial Aid” section of the common dataset for several private colleges that he researched (including the school my daughter will be attending) there is a line that implies the institutional portion (and largest portion) of financial aid is partially “tuition funded”. If our interpretation is correct, this leaves me feeling very uncomfortable because we are really sacrificing to pay almost $50k/year for her to attend college. I feel that if the school is requiring that we contribute to the education of some of my daughters classmates, we should at least be able to deduct that portion of the tuition from our taxes. </p>

<p>It also would explain why tuitions are threw the roof yet financial aid has increased. </p>

<p>Does any one else have additional knowledge on this?</p>

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<p>I took a look at the common dataset for my daughter’s college and I did see the line you referenced; “tuition funded grant, awarded by college”. That could be interpreted 2 different ways. I’m assuming the dollars used to support financial aid beyond the federal and state aid is from endowment $'s and other private funding. Maybe I’m being naïve but I don’t believe it would be ethical to use tuition money that parents are paying for their child towards the tuition of other students… although, perhaps we are paying indirectly if they are increasing the amount of endowment $’s going towards financial aid.</p>

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<p>Many colleges claim that the true cost of an education is far more than you are paying at $50,000, so you’re all being subsidized.</p>

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<p>Muffy - Perhaps… but many of us are much less “subsidized” than others. I still believe that the correlation between tuitions rising much faster than inflation and the increased amount of FA at private institutions is suspect.</p>

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<p>At most top tier private schools, every one is getting a tuition benefit because the cost to educate a student exceeds the cost that we as parents are paying for our child to attend school so even the family that is paying “full freight” is not paying the true cost to educate their child.</p>

<p>For example Morty Shapiro - President of Williams College states that the cost to educate a student at Williams is actually closer to $80k a year (however we are not paying 80k)</p>

<p>[Tuition</a> turmoil: a roundtable discussion: higher education leaders talk about the struggle with skyrocketing tuition costs and changes to federal aid programs | University Business | Find Articles at BNET.com](<a href=“http://findarticles.com/p/articles/mi_m0LSH/is_5_8/ai_n13719305/pg_1]Tuition”>http://findarticles.com/p/articles/mi_m0LSH/is_5_8/ai_n13719305/pg_1)</p>

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<p>sybbie719 - Thanks for the link to a really interesting and informative discussion. I get a bit riled-up every tax season when I see that after paying hefty tuitions for my 2 kids and taxes, there’s virtually nothing left. Ultimately, I am happy with our decision.</p>

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<p>I get a bit riled-up every tax season when I see that after paying hefty tuitions for my 2 kids and taxes, there’s virtually nothing left.</p>

<p>Better than having virtually nothing left, every paycheck. :(</p>