3 ms·
The cutoff of those types of programs never made sense to me. There is really no financial difference between a family making $124,000 and a family making $126,
by dcchambers 7y ago
The cutoff of those types of programs never made sense to me. There is really no financial difference between a family making $124,000 and a family making $126,000, but suddenly that extra $2000/year means they can afford to pay the $50,000/year for tuition? If I was the sole earner for the household making $150,000/year, it actually makes more financial sense for me to go ask my boss for a $25,000 pay-cut?
The University of Wisconsin, my alma mater, recently introduced a similar program called "Bucky's Promise" (https://financialaid.wisc.edu/types-of-aid/tuition-promise/ https://financialaid.wisc.edu/types-of-aid/tuition-promise/) to give 4 years of free tuition to any household with an AGI of less than $58,000/year. But if you make a penny more than that, you don't get any of the benefit? It just doesn't make sense to me.
These universities are incentivizing people to game the system.