<p>I am pleased to hear that many Ivy’s and others are offering full tuition for those making under $100,000. Does anyone know if there will be any help for those (at schools like Penn) making low $100’s. It seems unfair that the cap would not be graduated to help everyone. After all, why should we pay full-price (a 45,000 bill requires what, $70,000 income before taxes? ) when those making just a bit below pay very little? Rather a disincentive, isn’t it?
I think the time has come to lower the price for everyone. I, like many others, feel duped for being extremely frugal all these years. I also get the feeling the price will come down AFTER my kids are through in a few years with the rest of the big cohort going through college now.</p>
<p>I think you are right it is a disincentive. With phase outs etc., you are talking about real incomes being the same with as much as a $50,000 or more spread in income. No point in working hard to earn more, you have to earn way way more (like the rich and famous) so you don’t have to pay anything. AMT is just one little cutie, it can wipe out a deduction for 3 children if the AMT is $5,000 the same as the child deduction.</p>
<p>Hikids,
You are absolutely right: after a certain amount all the deductions and credits and IRAs are not allowed, hence it is if you are making much less. Personally, 80,000 and 110,000 are not too far apart after taxes but it sure means alot to fin aid offices. Haven’t been caught by the AMT in a while but that really hurts.</p>
<p>Specifically at Penn, there is a $100,000 income cutoff for “no loans” in financial aid packages for 2008-09, with no cutoff for years after that.</p>
<p>so the cutoff is based on AGI on your '07 tax return----does untaxed income come into play? like money placed in 401K or any child support or simply the AGI</p>
<p>While the money already in your 401k is not factored in, the contibutions made during the 2007 tax year are added back in. The monies from child support are also added into this equation.</p>