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Is it safe to characterize those who would pay full price as only the children of millionaires and billionaires? I filled out the FAFSA just to see and my EFC (
by noisenotsignal 4y ago
Is it safe to characterize those who would pay full price as only the children of millionaires and billionaires? I filled out the FAFSA just to see and my EFC (when I first started college) was 91,000. I doubt my parents were millionaires; even an overestimate of assets (some of which weren’t really liquid as they were preparing to buy a house) would’ve been just barely over 1 million. It’s hard to see paying that as affordable.
- jefftk 4y agoHow were they not millionaires if their net worth was over $1M?
- noisenotsignal 4y agoWell, I couched it saying it was an overestimate. Besides, having $1,000,001 technically makes you a millionaire but I don’t think that’s what people are referring to when they’re talking about “millionaires and billionaires”. 4 years of $80,000 tuition is $320,000 - are we trying to say that 32% of a “millionaire’s” total assets is a cost of college we’re ok with as it only affects millionaires and billionaires? In addition, given an Expected Family Contribution (EFC) of $91k a year for assets == 1 million (plus other variables of course), there seems to be a decent amount of room to reduce the total assets <1 million and still pay the full price of $80k a year. Then even by strict definition, not only millionaires and billionaires are going to be paying full price.
- bcrosby95 4y agoYeah, its especially awkward now that people are having kids later in life. Being a millionaire at, say, 45 is way different than being a millionaire at 55 or 60. Heck, I have a friend who had a kid in her 50s - they won't be in college until she's in her 70s!