I see the problem. I entered the untaxed income incorrectly. With the inputs fixed and untaxed income = 10% of AGI, the totals change to the following. Assuming parents have no assets is obviously not realistic. If parents have non-retirement, non-primary home assets above $175k, net cost increases by 5% of amount over $175k.
This is obviously superior FA to Harvard or any other similar Ivy+ type college I am aware of that is not free. It’s not shocking that Princeton would lead in FA, as Princeton has the highest endowment per student – approximately $4 million per student. Tuition revenue is minuscule compared to investment returns on endowment, in a typical year. IPEDS information from a previous post I wrote is below:
$500k AGI – Net Price = $92k/year (sticker)
$450k AGI – Net Price = $86k/year
$400k AGI – Net Price = $72.5k/year
$350k AGI – Net Price = $59k/year
$300k AGI – Net Price = $45k/year
$250k AGI – Net Price = $31k/year (similar to no tuition)
$200k AGI – Net Price = $17.5k/year
$150k AGI – Net Price = $4k/year
$100k AGI – Net Price = $0k/year
Princeton Revenue per FTE Student in 2021
Investment Returns – $1.51M (95% of revenue)
Private Gifts – $49k (3% of revenue)
Government Grants – $16k (1% of revenue)
Tuition + Fees – $13k (1% of revenue)
Other – $6k (~0% of revenue)