Top Colleges Are Too Costly Even for Parents Making $300,000 (bloomberg.com)
(Friday April 25, 2025 @05:24PM (msmash)
from the tuition-squeeze dept.)
- Reference: 0177141429
- News link: https://news.slashdot.org/story/25/04/25/1931247/top-colleges-are-too-costly-even-for-parents-making-300000
- Source link: https://www.bloomberg.com/graphics/2025-college-cost-middle-class-squeeze/
Families earning $300,000 annually -- placing them among America's highest earners -- are increasingly finding themselves [1]unable to afford elite college tuition without taking on substantial debt. Bloomberg's analysis of financial aid data from 50 selective colleges reveals households earning between $100,000 and $300,000 occupy a precarious middle ground: too affluent for meaningful aid but insufficiently wealthy to absorb annual costs approaching $100,000.
The squeeze begins around $150,000 income, where families typically contribute 20% ($30,000) annually toward tuition. At $270,000 income, expected contributions reach $61,000 per year. Most institutions eliminate financial aid entirely at approximately $400,000 income. Harvard, MIT, and the University of Pennsylvania recently [2]expanded free tuition thresholds to $200,000 , acknowledging this middle-class pressure. The changes take effect for 2025-26.
[1] https://www.bloomberg.com/graphics/2025-college-cost-middle-class-squeeze/
[2] https://news.slashdot.org/story/25/03/17/1740242/harvard-says-tuition-will-be-free-for-families-making-200k-or-less
The squeeze begins around $150,000 income, where families typically contribute 20% ($30,000) annually toward tuition. At $270,000 income, expected contributions reach $61,000 per year. Most institutions eliminate financial aid entirely at approximately $400,000 income. Harvard, MIT, and the University of Pennsylvania recently [2]expanded free tuition thresholds to $200,000 , acknowledging this middle-class pressure. The changes take effect for 2025-26.
[1] https://www.bloomberg.com/graphics/2025-college-cost-middle-class-squeeze/
[2] https://news.slashdot.org/story/25/03/17/1740242/harvard-says-tuition-will-be-free-for-families-making-200k-or-less
The Myth of Ownership (Score:2)
by hadleyburg ( 823868 )
I have recently learned of the American philosopher Thomas Nagel and one of his books "The Myth of Ownership: Taxes and Justice".
A thesis in this book:
- People often assume that gross income is a sort of pure baseline of deserved income, and resent the idea of taxes being taken to pay for the wellbeing of others.
- This assumption is problematic since gross income is largely a product of the system paid for by taxes.
Should eligibility for elite education mostly be determined by family wealth? I know that's t
The US is excellent at destroying itself (Score:3)
An educated population is the key to competitiveness. If a country does not invest in its people, it will fall behind. Allowing tuition to reach impossible levels is going to hurt the USA as a whole.
Re: (Score:2)
Well said.
Re: (Score:3)
It's not only important for competitiveness. An educated population is desirable for many more reasons.