[HN Gopher] Undergraduates with family income below $200k will b...
       ___________________________________________________________________
        
       Undergraduates with family income below $200k will be tuition-free
       at MIT
        
       Author : gnabgib
       Score  : 178 points
       Date   : 2024-11-20 16:59 UTC (6 hours ago)
        
 (HTM) web link (news.mit.edu)
 (TXT) w3m dump (news.mit.edu)
        
       | alsetmusic wrote:
       | Awesome. Now let's lower the bar further and do it everywhere.
       | And then let's keep doing more until students can pay their
       | tuition with a summer job, like they could when our elders went
       | to school.
       | 
       | I'll hold off on asking for higher education to be free, as the
       | culture still pushes back on that. But a return to the former
       | model would be most welcome.
        
         | onename wrote:
         | Why not be more ambitious and aim for free?
        
           | emptiestplace wrote:
           | It is difficult to enact meaningful change in a country that
           | doesn't see supporting its people as an investment in itself.
           | Discussing the price when it should be free is a distraction.
        
           | rty32 wrote:
           | It's never going to happen in a country where politicians try
           | to convince people that college education == elitism, and a
           | significant part of the population actually believes that
        
         | mixmastamyk wrote:
         | Won't happen as long as the govt is giving out free loans,
         | which is the driver of increasing tuition prices.
        
           | contingencies wrote:
           | Clearly nothing to do with inefficient administration, then.
           | Here in Australia, where a friend's wife works as the PA for
           | the Dean in one of our foremost universities, and I know
           | numerous lecturers, some of whom are moving overseas for
           | better opportunities (in Southeast Asia of all places!), the
           | faculty-members-over-beer perspective is largely that the
           | universities are head-in-sand about AI and about to become
           | far less relevant. IMHO MIT OCW is great, we need more of
           | that, and more mini-courses.
        
             | stewarts wrote:
             | I was going to comment that free loans and
             | inefficient/outsized admin go hand-in-hand. On further
             | thinking if you take away the loans, the admin has no
             | choice but to shrink and achieve higher efficiencies.
        
           | tzs wrote:
           | I tried to check if that was true, but couldn't find much
           | historical tuition data online. What little I did find showed
           | that tuition adjusted for inflation has been increasing
           | fairly steadily for over 100 years, and I didn't really see
           | any change in the rates between before government loans and
           | after.
           | 
           | Maybe if I had found data for a wide range of schools instead
           | of just a couple of hard to get into schools there would have
           | been a more noticeable effect.
        
         | readthenotes1 wrote:
         | As far as I know, and countries where tuition is free entrance
         | is restricted and the students do not expect to live the United
         | States university lifestyle.
         | 
         | Free would be fine if we could expect actual return on the
         | investment instead of extended high school, delaying adulthood,
         | and channeling people from useful vocations within their grasp.
        
         | tmpz22 wrote:
         | I'd like to see a future where a student can have free tuition
         | but (with exception) is required do meaningful civic service
         | work that benefits the community and country that is paying for
         | tuition, ultimately graduating with zero debt if requirements
         | are met.
         | 
         | Maintaining national parks? Helping support inner city?
         | Tutoring and improving public education? Imagine having the
         | majority of American college students contributing to these
         | worthy causes AND getting a strong education.
        
           | Izikiel43 wrote:
           | Doesn't the federal government already do this? Work for them
           | 10 years and student debt is cancelled?
        
             | sethammons wrote:
             | I think they are suggesting that you would graduate debt
             | free for having done service while getting your education
        
           | csh0 wrote:
           | This is basically the point of PSLF[0]. The cost to
           | participants is not $0, but it can ultimately be very low if
           | they only make income adjusted payments during their 10 years
           | of service.
           | 
           | https://studentaid.gov/manage-loans/forgiveness-
           | cancellation...
        
         | kasey_junk wrote:
         | Do we also return the facilities to the state they were in
         | before, particularly the residential programs? College
         | enrollment percentage? What about a near universal military
         | draft for men?
         | 
         | Not that I think lowering the cost of education is a bad effort
         | but appeals to some prior culture like they are apples to
         | apples comparison is dishonest.
        
           | tedunangst wrote:
           | And the classrooms should be an easy stroll from the dorms,
           | downhill, both ways.
        
           | bigstrat2003 wrote:
           | > Do we also return the facilities to the state they were in
           | before, particularly the residential programs?
           | 
           | Yes, please. Students learned _just fine_ without all the
           | fancy facilities. Perks are great and all, but I would trade
           | them for a low cost of education in a second.
        
       | kevinventullo wrote:
       | The article claims 80% of American households meet this
       | threshold. I wonder what % of their incoming class (say
       | restricted to Americans) meets this threshold.
        
         | chews wrote:
         | That's a great question, I'd bet it's fair to say that 80% of
         | their applicants would not qualify, and yet it opens the door
         | for some really deserving humans. (Not being able to afford it
         | is why I didn't go to MIT, I also wasn't accepted at Cal, yet
         | UCLA (and all of the UC system for that matter) was under 4,000
         | a year and that's what my folks and I could afford so that's
         | where I studied.)
        
         | dleink wrote:
         | Princeton has had a similar rule since 2001. Their current
         | number is $100k. 25% of students pay nothing to attend. [0]
         | 
         | [0] https://www.princeton.edu/news/2024/03/29/princeton-
         | trustees... (go tigers)
        
           | WorkerBee28474 wrote:
           | Approximately 60% of American households earn less than
           | $100K. That's quite a difference in relative size.
        
             | jknoepfler wrote:
             | Households with earners in their 20's and early 30's don't
             | tend to have a lot of children of university age. One would
             | want to use the median income of households with
             | university-aged children.
             | 
             | (Median income by age rises sharply from 20->40, then
             | flatlines... the median age of a mother is around 27?)
        
         | clusterhacks wrote:
         | Use College Navigator for these types of questions:
         | 
         | https://nces.ed.gov/collegenavigator/?q=MIT&s=all&id=166683#...
         | 
         | That link says 72% of incoming freshman in 2022-2023 received
         | financial aid. Also has a full-time beginning net cost average
         | of just under $22,000 in 2022-2023.
         | 
         | It's not a perfect source of data, but there is enough on
         | College Navigator to let you dig into it a bit and compare to
         | other schools.
        
           | brewdad wrote:
           | Note that aid includes federal student loans though. They may
           | have needed to come up with $22,000 out of pocket but also
           | have taken on thousands more in loans that will need to be
           | paid back. If they don't have the $22,000, then private
           | student loans at much worse terms are likely required.
        
       | bko wrote:
       | MIT is a great financial investment. There is financing already
       | available (federal and private) so presumably if someone wanted
       | to go they likely could. They may leave with debt however.
       | 
       | The median salary of an MIT graduate is 120k and the median debt
       | is 12k, and less for lower income families (2023-2024):
       | 
       | $0 - $30,000 family income: $6,866
       | 
       | $30,001 - $75,000 family income: $9,132
       | 
       | $75,000+ family income: $12,500
       | 
       | Bumping this up to families making $200k seems really unnecessary
       | and helps people that don't really need to help.
       | 
       | https://sfs.mit.edu/undergraduate-students/the-cost-of-atten...
        
         | rahimnathwani wrote:
         | MIT is a great financial investment.
         | 
         | How do we know that is true? Among folks whom MIT would accept,
         | do we know whether those who choose to attend MIT get a greater
         | return on their investment (of time and money) compared to
         | those who choose to not apply or not attend?
         | families making $200k seems really unnecessary and helps people
         | that don't really need to help
         | 
         | There are certainly families earning $200k who need help. $200k
         | income for a family of 5 in San Francisco is different from
         | $200k income for a family of 3 in rural Idaho.
        
         | FuriouslyAdrift wrote:
         | When I looked at MIT in 1990, tuition was fully covered but
         | housing was BRUTAL.
         | 
         | More than twice my parents mortgage. I'm sure it's worse, now.
        
           | mmcwilliams wrote:
           | It definitely is and is made worse by institutions like MIT
           | and Harvard that don't pay their full tax burden to the city
           | due to the PILOT program. They're allowed to accrue more and
           | more real estate while paying a fraction of the taxes that
           | other property holders would and drive prices up
           | dramatically.
        
           | aidenn0 wrote:
           | From the page GP linked, the median scholarship for students
           | with household income under $65k/yr also covered housing, and
           | $65k-$100k covered most of the housing costs.
        
         | robocat wrote:
         | > They may leave with debt however.
         | 
         | The linked article says not.                 Loans are not
         | included in our financial aid offers because we believe your
         | financial aid will cover your expenses. We do not expect any
         | undergraduate to take out a loan. Rather than borrow, most
         | students opt to work during the academic year. At MIT, this
         | work often provides students not only a way to help pay for
         | college but also with world-class research experience.
         | 
         | Of course there is still the small matter of investing a few
         | years of your life. The biggest regret I have with my degree
         | (Canterbury) is the waste of time. I didn't learn much but the
         | degree did get me a job.
        
         | aidenn0 wrote:
         | > Bumping this up to families making $200k seems really
         | unnecessary and helps people that don't really need to help.
         | 
         | My household income is right around $200k, and my daughter
         | (still a few years from college) would definitely consider e.g.
         | UC Berkeley, which (including housing) is half the cost of MIT
         | for an in-state student. Free tuition would certainly make her
         | look at MIT more closely, so if the goal is to draw the best
         | students (and helping poor students is a side-effect), then
         | it's a good idea.
         | 
         | Also, it's headline-grabbing. There's at least one poor kid
         | somewhere in the US who will read this headline and consider
         | MIT, when they previously didn't (even though they probably
         | already would have qualified for free, or nearly-free tuition).
        
           | brewdad wrote:
           | True. Counselors at poorer school districts frequently don't
           | recognize that these "dream schools" are often more
           | affordable than a state school for certain populations. The
           | students certainly don't know it unless a trusted adult shows
           | them and really pushes them towards pursuing it. Hopefully,
           | some students out there will see this and realize that while
           | MIT is crazy selective, getting in is the hardest part.
        
         | kodt wrote:
         | I feel like the number of children you have makes a big
         | difference. 1 child vs 5 kids potentially with 2 in college / 3
         | in private school would be vastly different financial
         | situations.
        
         | IncreasePosts wrote:
         | Except it's a financial investment where person A(parents)
         | invests, and person B(student) reaps the rewards.
        
       | araes wrote:
       | Started looking and found out there's some much worse, and far
       | more obvious cases that need to implement these reforms. [1]
       | 
       | UPenn is THE most obvious. Sitting on a $20,000,000,000 endowment
       | fund that went up +170% over 10 years while Philadelphia rots
       | with drug use, poverty, and gun violence.
       | 
       | BTW, amazing site to be horrified by gun violence (and vaguely
       | fascinated). Look upon the awfulness of Philadelphia. [2] Sitting
       | in their safe little haven while East and South is wounding
       | murder land with overlapping murder / wounding statistics. (12k
       | from 2014-2023, 190/100000 urban) [3] Northwestern and the
       | violence everywhere South in Chi-town is maybe a personal second
       | choice. ($13,700,000,000, +74%, 26.9k, 280/100000 urban) [4][5]
       | 
       | [1]
       | https://en.wikipedia.org/wiki/List_of_colleges_and_universit...
       | 
       | [2] (Guns, Philadelphia) https://www.thetrace.org/2023/02/gun-
       | violence-map-america-sh...
       | 
       | [3] (Location, UPenn)
       | https://www.google.com/maps/place/University+of+Pennsylvania...
       | 
       | [4] (Guns, Chicago) https://www.thetrace.org/2023/02/gun-
       | violence-map-america-sh...
       | 
       | [5] (Location, Northwestern)
       | https://www.google.com/maps/place/Northwestern+University/@4...
        
         | nadermx wrote:
         | Thetrace.org is in fact pretty sweet looking. Interesting that
         | philly seems to be shot to injur and next door camden seems to
         | be shoot to kill.
        
         | njtransit wrote:
         | What is the argument here, exactly?
        
         | ciupicri wrote:
         | So if a university has money, learning there should be free?
         | 
         | If you don't have guns, you won't have gun violence, but I
         | guess the second amendment won't be changed any time soon.
        
           | tdeck wrote:
           | > So if a university has money, learning there should be
           | free?
           | 
           | Not an unreasonable proposition. The purpose of the
           | university is ostensibly to provide an education, not to
           | continue hoarding more and more money.
        
             | JumpCrisscross wrote:
             | > _purpose of the university is ostensibly to provide an
             | education_
             | 
             | One of the purposes. They're also centres for learning and
             | research and repositories of knowledge.
        
               | beeboobaa6 wrote:
               | Also known as education
        
               | JumpCrisscross wrote:
               | > _Also known as education_
               | 
               | No. There are non-teaching research universities. Many
               | universities have non-teaching faculty. Learning !=
               | teaching != education.
        
               | tdeck wrote:
               | If they were spending the money on those things, this
               | might be an argument. But they're not spending it;
               | they're hoarding it.
        
               | blackhawkC17 wrote:
               | $9 billion annually [1] qualifies as not spending it, I
               | guess. I wish people actually checked figures before
               | ranting online.
               | 
               | 1- https://projects.propublica.org/nonprofits/organizatio
               | ns/231...
        
               | jjk166 wrote:
               | I don't think you understand how endowments work.
               | 
               | It's not a pile of gold sitting in a vault on campus.
               | It's an account which is productively invested and
               | generating returns which are what's actually used for
               | funding operations. A $20 billion endowment would be
               | expected to produce about $1 billion per year, or around
               | 20% of the annual operating budget. They need to bring in
               | about $4 Billion more dollars per year to keep the lights
               | on.
        
               | tzs wrote:
               | They _are_ spending it. On average they spend about 5% of
               | it per year. In 2023 that was $975 million. It goes 53%
               | to instruction, 22% to health care, 15% to student aid,
               | and 10% to research, academic support, and other
               | services.
               | 
               | The point of an endowment is to provide long term support
               | for whatever the purpose is of that endowment. That is
               | done by investing it and using the investment earnings
               | for that purpose.
        
               | bigstrat2003 wrote:
               | I disagree. I think teaching is the sole purpose of a
               | university. Research is ancillary to that, and if an
               | organization only did research but didn't teach I would
               | not say they get to call themselves a university any
               | more.
        
           | janalsncm wrote:
           | For a private school, they can choose how to spend their
           | money. Hoarding it is one option.
           | 
           | For the federal government, they can choose how they allocate
           | grants. Withholding grants from greedy schools is one option.
        
         | readthenotes1 wrote:
         | You left off
         | 
         | (Drugs) https://www.cbsnews.com/philadelphia/news/mexico-
         | depicts-phi...
        
         | rs999gti wrote:
         | > UPenn is THE most obvious. Sitting on a $20,000,000,000
         | endowment fund that went up +170% over 10 years while
         | Philadelphia rots with drug use, poverty, and gun violence.
         | 
         | Why is it UPENN's responsibility to solve these issues? This is
         | Philadelphia's problem, the university is just a business
         | operating in the city.
        
           | bradchris wrote:
           | I think that speaks to the low bar we have come to expect
           | from our endowed institutions today more than anything else.
           | 
           | American Universities, historically, are supposed to improve
           | not just their students' lives but also society as a whole,
           | especially as serving as boosters for the city they're in and
           | their immediate neighbors. That's why they're nonprofits.
           | That's also likely their strongest lifeline to remain
           | relevant in the future rather than as the hollow alumni clubs
           | and gatekeepers their critics say they are, with AI/the
           | internet/online schooling/topic of the day breaking down
           | socioeconomic barriers to knowledge access
           | 
           | That's why the Carnegies and Mellons built libraries,
           | museums, and the very literally named Carnegie-Mellon
           | university, back then. Now it seems like the first thing
           | billionaires today do is isolate themselves and their wealth
           | from the masses as much as possible.
        
           | Spivak wrote:
           | UPenn is a land-grant institution, they are not "just a
           | business" they were given land and money specifically to
           | serve the public good. They're why we have engineering
           | degrees, the government specifically wanted institutions that
           | taught practical marketable skills and to do research in
           | those fields.
        
             | blackhawkC17 wrote:
             | > They were given land and money specifically to serve the
             | public good.
             | 
             | Their duty is to deliver education. It's not solving
             | political problems meant for elected officials (and the
             | population at large).
        
               | dleary wrote:
               | If their duty is to deliver education, why are they
               | sitting on a $20B hoard?
               | 
               | Presumably they could spend a little bit of that to
               | deliver some more education, couldn't they?
        
               | FactKnower69 wrote:
               | there are many, many people who are paid a lot of money
               | to pretend to believe that the universities should
               | actually be spending less and keeping more for their
               | endowments because that strategy would enable the biggest
               | impact at some indeterminate point in the future
        
               | blackhawkC17 wrote:
               | They spend $9 billion annually on exactly that. This
               | "hoard" can, checks notes, fund barely two years of
               | operations.
               | 
               | https://projects.propublica.org/nonprofits/organizations/
               | 231...
        
               | IncreasePosts wrote:
               | In the short term, yes. Just like an orchard owner can
               | chop down his trees and sell firewood to make a little
               | more money this year.
        
               | etempleton wrote:
               | Endowments are not just slush funds that can be used at
               | leadership's discretion; they are often from donated
               | monies with specific stipulations set by donors on how,
               | where, and what those funds can and cannot be spent on.
        
             | alephnerd wrote:
             | > UPenn is a land-grant institution
             | 
             | It isn't.
             | 
             | Despite the name, it's actually a private university.
             | 
             | Penn State is Pennsylvania's land grant university.
        
             | vonmoltke wrote:
             | > UPenn is a land-grant institution
             | 
             | The University of Pennsylvania is one of the nine colonial
             | colleges founded before the United States existed. It
             | predates land grant institutions by over a century. I think
             | you are confusing it with Pennsylvania State University,
             | which _is_ a land grant institution.
        
           | itsoktocry wrote:
           | > _Why is it UPENN 's responsibility to solve these issues?_
           | 
           | Who's responsibility is it? Have you seen how the government
           | operates? Why _wouldn 't_ UPENN want to help solve it?
        
             | qeternity wrote:
             | You're asking the wrong question: why _would_ they?
             | 
             | How much have you contributed to Philly's woes?
             | 
             | Probably nothing, because it doesn't benefit you.
        
               | ZYbCRq22HbJ2y7 wrote:
               | > How much have you contributed to Philly's woes?
               | 
               | To resolve Philly's woes?
               | 
               | > Probably nothing, because it doesn't benefit you.
               | 
               | If they pay taxes...
        
             | ElevenLathe wrote:
             | OK, but they do exist to educate people, and have a
             | comically large endowment to do it with that only keeps
             | growing. I guess their plan is to grow the endowment until
             | all human beings everywhere can get full ride UPenn
             | scholarships?
        
               | dragonwriter wrote:
               | Going up is what an endowment is supposed to do; you
               | spend some part of the return on operational needs, while
               | also growing the base so you have greater (nominal, and
               | hopefully also real) capacity for that downstream.
               | 
               | If, over the long term, an endowment _isn't_ growing,
               | it's being mismanaged.
        
             | myworkinisgood wrote:
             | It is the government's responsibility. Change your
             | government with votes.
        
         | janalsncm wrote:
         | Is there a coherent argument tying A to B here? Schools have
         | large endowments and are also sometimes located in violent
         | cities. Is it your contention that one causes the other, or
         | even could in theory affect the other? Otherwise I don't see
         | the point, you might as well bring up the number of potholes in
         | Philadelphia too.
         | 
         | Also Northwestern is in Evanston, not Chicago. Two different
         | cities.
        
         | tzs wrote:
         | They are not sitting on it. They spend about 5% of it annually.
        
       | knowitnone wrote:
       | Yeah, education should be free. Record all lectures and put them
       | out there. Charge a small fee to view them if you must but
       | lecturers repeating themselves is not my idea of a great use of
       | their time. Yes, I know lots of lectures are already published.
        
         | rahimnathwani wrote:
         | Watching non-interactive lectures is a small part of the
         | overall experience. I'm not commenting on whether the
         | experience is 'worth it', but assuming the only thing people
         | get is the ability to watch lectures doesn't make the point.
        
           | jacobgkau wrote:
           | On the other hand, many people act like "talking to
           | professors over beer" (or to your classmates, for that
           | matter) is supposed to add "value" to the college experience,
           | when it's perfectly possible to get at least a bachelor's and
           | a master's without ever doing that (source: I did).
        
             | rahimnathwani wrote:
             | Two people with the same GPA and same piece of paper from
             | the same college, may have gotten different amounts of
             | lasting value from their college experience.
        
           | mullingitover wrote:
           | A big part of it is having a long-term peer group of people
           | who were disciplined and motivated enough to get into MIT and
           | succeed there. Arguably true for any university. We're
           | products of our environments, and if you surround yourselves
           | with hardworking people it rubs off on you.
        
         | p-a_58213 wrote:
         | It really depends on the subject matter and the institution's
         | focus (and tier). For disciplines where foundational knowledge
         | remains relatively unchanged (say, Latin) recorded lectures
         | could be an efficient way to disseminate information without
         | requiring professors to repeat the same material. A "flipped
         | classroom" would offer opportunities for more dynamic
         | interaction and deeper understanding, and of course this would
         | cost money.
         | 
         | However, as a professor myself in a rapidly evolving STEM field
         | adjacent to AI, I update at least 20% of my course materials
         | each year to keep pace with new developments. As it happens,
         | about a third of the new content is derived from my research
         | group's latest work. Recording lectures isn't a one-time
         | effort; it would require constant updates to remain relevant
         | (and let me tell you, if you want to get the voice-over right,
         | it is a lot more time-consuming and soul-crushing than simply
         | turning up in class and giving a live lecture).
         | 
         | The value of live lectures goes beyond just "transmitting"
         | content. They offer real-time interaction, immediate feedback,
         | and dynamic discussions that adapt to the students'
         | understanding. This level of interaction devilishly difficult
         | to replicate in recorded formats.
         | 
         | I would ramble on more, but I need to return to the lecture
         | materials I am developing for this Friday on Vision-Language
         | Models :P
        
       | TheJoeMan wrote:
       | This is a great step in the right direction. I can't speak
       | directly for MIT, but there are issues with how these programs
       | don't apply to parents with small family businesses. My parents
       | had a small business, with my father taking home a salary of
       | $XX,XXX. Duke University used the business assets to determine
       | the EFC (expected family contribution) of literally 90% of the
       | salary. Essentially saying to sell off the family business for
       | the college fund, which was a non-starter.
       | 
       | Small businesses are allegedly the backbone of America, and I
       | feel these tuition support programs overlook this segment of the
       | middle-class.
        
         | JumpCrisscross wrote:
         | It's _incredibly_ difficult to structure these rules in a way
         | that doesn't discriminate against small businesses while not
         | opening a giant loophole for the rich.
        
           | changoplatanero wrote:
           | Why is the price you have to pay for something dependent on
           | how much money your parents make? Feels so unfair
        
             | mh- wrote:
             | In my opinion, you're reasoning about it incorrectly.
             | 
             | What if I said: the price is the same for everyone, but
             | people with less access to money get proportionally more
             | assistance paying that price?
        
               | changoplatanero wrote:
               | still seems weird to me. is there any other product for
               | 18-22 year olds where the price changes depending on
               | their parents wealth?
        
               | mh- wrote:
               | Interesting question. I can't think of anything outside
               | of the education sphere, no. Maybe someone else will
               | chime in with an example.
        
               | bigstrat2003 wrote:
               | I would argue that financing a purchase (say, a house or
               | car) falls into this category. The object itself does not
               | change price, but the financing will change price wildly
               | depending on whether the parents have good credit and can
               | cosign the loan.
        
               | changoplatanero wrote:
               | This one makes sense to me cause the price (interest) is
               | related to the risk or repayment. The way the
               | universities do it is they want to find out how much
               | money is in your parents bank account and then take as
               | much of it as possible.
        
               | feanaro wrote:
               | So there _is_ an upper limit, which is the real price?
        
             | s1artibartfast wrote:
             | Because it is really a discount to the parents, not the
             | student. It is understood that few 17 year olds have saved
             | enough money to pay MIT's tuition of $85k/year for 4 years
             | and parents are usually footing the bill.
             | 
             | Yes, students who's parents have money but choose not to
             | spend it get a rough deal. You can make a pretty strong
             | case that it is their parents screwing them over, not the
             | school. The school doesn't owe a discount to prospective
             | students.
        
               | bigstrat2003 wrote:
               | > Yes, students who's parents have money but choose not
               | to spend it get a rough deal. You can make a pretty
               | strong case that it is their parents screwing them over,
               | not the school.
               | 
               | No you can't. The school is the one choosing to set their
               | prices based on the parents, who might or might not have
               | anything to do with the student's school budget. That is
               | the school's faulty assumption, and they, not the
               | parents, are the ones screwing over those students.
        
           | dragonwriter wrote:
           | The reason is because small business owners are often, by any
           | measure that doesn't explicitly discount ownership of the
           | business, actually rich.
        
           | HeyLaughingBoy wrote:
           | There really aren't that many rich people, relatively
           | speaking, so who cares? That's throwing the baby out with the
           | bathwater.
        
         | Scoundreller wrote:
         | Heh, for my jurisdiction, to get gov financial aid for a 2nd
         | degree, they expected me to withdraw from retirement savings to
         | fund it, but no similar expectation if you had a locked-in
         | defined contribution pension plan (lol I wish).
         | 
         | Nor would they expect you to take a line of credit against the
         | equity in property if you owned any, but stocks are always a
         | rich person luxury that you can sell!
         | 
         | Kinda cemented that we're rewarding a failure to save and
         | rewarding a failure to save in something liquid.
        
         | nuancebydefault wrote:
         | Why are such things in the US so complicated? Where I live,
         | studying is much much cheaper for most professions,for
         | everyone!
         | 
         | That's the only fair way. Also, a set of well educated people
         | pays itself back later in the form of mostly income and added
         | value taxes, which provides money to keep studying for cheap
         | for the next generation.
        
           | s1artibartfast wrote:
           | Because education is largely an afterthought, and
           | universities primarily compete on entertainment and prestige.
           | 
           | High cost and exclusivity is the entire point.
           | 
           | A university open to all with a fraction of the price would
           | be a poorly ranked one in every competitive measure.
        
             | PittleyDunkin wrote:
             | > universities primarily compete on entertainment and
             | prestige.
             | 
             | I like to call this "resort-style education".
        
             | nuancebydefault wrote:
             | Still, I do not get it. Why would this competition /
             | exclusivity rule be so much less prevalent in large parts
             | of Europe?
             | 
             | I don't want to say Europe is without problems, but I think
             | this kind of legislation, together with social security in
             | general, is a clear example of how it can be handled more
             | efficient and fair for most people.
        
               | s1artibartfast wrote:
               | Good question. I wonder if labor competition in Europe is
               | less reliant on University names and reputation? IT could
               | also have to do with cultural difference is what students
               | look for in a university.
               | 
               | My understanding is that most universities in Europe look
               | more like US bare bones commuter schools, opposed to an
               | all inclusive recreational experience.
               | 
               | The top ranked university in Europe is Oxford, which
               | educates more than twice as many students as MIT with
               | half the budget. I doubt this is because Oxford is
               | cutting corners on educational curriculum.
        
             | currymj wrote:
             | actually ETHZ and EPFL are very good and highly ranked, and
             | have cheap tuition and open enrollment. i don't know how
             | they do it. I guess things just work better in Switzerland.
        
           | itsoktocry wrote:
           | > _Where I live, studying is much much cheaper for most
           | professions,for everyone!_
           | 
           | I'll go out on a limb and bet people in your country earn
           | much less than the average American, too. Why? Why don't
           | companies just pay these people more? IT all comes back in
           | income and value added taxes.
        
             | shafyy wrote:
             | I don't know where the OP lives. But in Switzerland, where
             | world-class univeristies like the ETH cost something like $
             | 1.5k a year in tuition, I'm pretty certain that people earn
             | more on average than in the USA.
        
               | nuancebydefault wrote:
               | I live in Belgium, we earn quite a lot less on average
               | indeed. However why would we need so much money? We can
               | go to hospital, or even 20 times visit a dentist for that
               | matter, without expensive insurance and without the fear
               | of bankruptcy. We can have kids without fear of not being
               | able to pay kintergarten.
        
               | ummonk wrote:
               | Americans earn more than Swiss people after taxes
               | according to https://en.wikipedia.org/wiki/Disposable_hou
               | sehold_and_per_c...
        
               | LtWorf wrote:
               | And after paying insurance?
        
             | nuancebydefault wrote:
             | Yeah indeed a giant part (75 percent or so) of what the
             | companies pay, does not directly go to the workers bank
             | account.
        
           | MisterBastahrd wrote:
           | Because America is a place where people have been
           | indoctrinated to believe that misery is the cost of freedom.
           | It's a place where half the population would rather read your
           | obituary or donate to your fundraiser than simply have a
           | healthcare system that people can use in a timely manner
           | without worrying about cost.
        
             | nuancebydefault wrote:
             | I really think Freedom, the American way, is super
             | overrated. If the cost is misery, fear of loss of health or
             | job, what's left of Its benefits? "I'm the chosen one
             | protected by God"? Or does social security still have this
             | huge connotation with communism?
             | 
             | Sorry for my ranting, I just cannot believe what is still
             | happening.
        
           | inglor_cz wrote:
           | American universities sell their students a lot of amenities
           | that aren't really necessary for study. Not to mention the
           | bloated admin class. You want to feel "in" when it comes to
           | social justice? Here are your administrators that do the
           | rituals of social justice as a full-time job, but they demand
           | salaries.
           | 
           | As for amenities, back in Europe, many universities don't
           | even have a campus, just a scattering of buildings all around
           | the city, acquired randomly as the school grew (that includes
           | dorm buildings, often quite far from one another). You will
           | spend some extra time commuting among them, but the
           | university saves money - and, indirectly, you too.
           | 
           | Getting from dorm to lectures usually took me about 30
           | minutes each way - on foot, then subway, then on foot again.
        
             | nuancebydefault wrote:
             | 30 minutes does not seem too bad. Unless you paid a lot for
             | the dorm.
        
           | bobmcnamara wrote:
           | Roger Freeman, Richard Nixon and Ronald Reagan's education
           | advisor, was afraid that educated voters would turn the
           | United States towards communism.
           | 
           | One of Ronald Reagan's campaign promises was dismantling or
           | breaking the department of education, similar to what he had
           | done to California's state universities by limiting their
           | budgets and moving the burden of tuition to students.
           | 
           | At the time this was quite popular as it lowered taxes.
        
             | nuancebydefault wrote:
             | A few weeks ago apparently, the 'promise less
             | taxes->everybody happy' magic spell has once again worked.
        
           | currymj wrote:
           | the ideal is that college should be very expensive for rich
           | people and cheap, free, or at least more affordable, for less
           | wealthy people.
           | 
           | american universities get closer to this ideal than you might
           | expect. the days of outrageous student debt are thankfully
           | fading away, at least for undergraduate degrees.
           | 
           | it would make more sense to do this redistribution through
           | taxes if possible, but many US institutions are private so
           | that doesn't really work. so the colleges basically have
           | their own privately-run means testing programs, and like all
           | such programs there are flaws and loopholes.
        
             | hooo wrote:
             | Why should college be very expensive for rich people?
        
           | dec0dedab0de wrote:
           | We have plenty of cheaper schools too, and they're fine. The
           | expensive schools are for the richest people to say they went
           | to school next to the best students who get in free.
           | 
           | And for the best students to meet rich people.
        
         | jjeaff wrote:
         | I can understand why they might do this. Many people who own a
         | small business underpay themselves significantly and use the
         | extra funds on the business to build up assets. This defers
         | taxes and allows the funds to be reinvested without tax. They
         | might even take out loans on those business assets. The same
         | way the wealthy will pay themselves a tiny salary and just live
         | off the asset value of their stock. Someone who owns their own
         | business could also easily drop their salary significantly for
         | the year prior to applying to college.
        
         | s1artibartfast wrote:
         | Isn't the entire point of these assessments to look at total
         | assets, and not just annual income?
         | 
         | I dont think this was an oversight or mistake. I think the
         | expectation was that yes, people should sell assets if they
         | have them .
        
           | xboxnolifes wrote:
           | The "mistake" is that the assets themselves are the source of
           | income. Sell them off, and the income goes away too. It's the
           | equivalent of expecting the parents to use 100% of their
           | income to put their kids into college, which is impossible.
        
             | Dylan16807 wrote:
             | A bunch of stock is a source of income too, but it wouldn't
             | be wrong to use some of it.
             | 
             | If the business is worth enough then selling it can replace
             | all the income you would have ever gotten from it. It's not
             | as simple as "income goes away". The specific numbers make
             | all the difference.
        
         | Dylan16807 wrote:
         | Well, how big were the business assets?
         | 
         | Specifically, what percent of the business would have to be
         | sold off? My reaction is very different for 5% versus 50%.
        
       | d2049 wrote:
       | When I was touring colleges as a high school senior I met someone
       | who had gotten into MIT but whose family could only afford to
       | send one kid to an elite college, him or his sister. He decided
       | to go to a state school which was a lot less expensive but whose
       | academics weren't close to the same level. This stuff matters to
       | people.
        
         | blackguardx wrote:
         | Most students go into debt to attend college. I fell into a
         | bracket where I didn't get any financial assistance but my
         | parents didn't want to/couldn't pay for tuition. I got personal
         | loans for everything. I think this is a common scenario.
        
       | meetingthrower wrote:
       | Yes but the algorithm also is that they take 5% of your assets
       | each year. So if you've saved $1M (not much for a $200K a year
       | couple in their 50s), that's $50K a year out the door.
        
         | daveed wrote:
         | Where are you seeing this?
        
           | brewdad wrote:
           | FAFSA. That's one of the calculations that goes into Expected
           | Family Contribution. There is an expectation that parent's
           | contribute some % of income (20%?), 5% of assets, and that
           | the student basically contributes 90% of any income or assets
           | to their name before a single dollar of aid, usually federal
           | loans, will be offered.
           | 
           | For all of you younger folks just starting your families,
           | expect to pay full price for college if you are anywhere near
           | the top 25% of earners (most of this site presumably). Any
           | scholarship money is a bonus but aid probably isn't going to
           | be forthcoming.
           | 
           | The subtext of this MIT announcement is that any family
           | making more than $200,000 will be paying full price to
           | subsidize the poorer students.
        
         | robnado wrote:
         | Honestly, that wouldn't be a bad way to fund education:
         | education is free, but the university gets taxation power over
         | you so they can tax you at x% of your income. It aligns
         | incentives better than the current system.
        
           | Engineering-MD wrote:
           | In which case you may like how it's done in the UK. it's
           | technically debt but in essence works as a graduate tax. The
           | government pays for your education with a loan. You then only
           | pay back 9% of your income over a certain income threshold.
           | You do this until you pay back the loan or 30-40 years have
           | passed. So in practice this is a graduate tax.
        
             | __d wrote:
             | Australia does something similar (it's called HECS if you
             | want to search for details).
        
       | bell-cot wrote:
       | This part seems to be getting overlooked -
       | 
       | > And for the 50 percent of American families with income below
       | $100,000, parents can expect to pay nothing at all toward the
       | full cost of their students' MIT education, which includes
       | tuition as well as housing, dining, fees, and an allowance for
       | books and personal expenses.
       | 
       | > This $100,000 threshold is up from $75,000 this year, while
       | next year's $200,000 threshold for tuition-free attendance will
       | increase from its current level of $140,000.
       | 
       | - even though that's the article's 2nd and 3rd paragraph.
        
       | pledess wrote:
       | This may have unintended consequences on chances of a successful
       | application. Now, as a high school senior, you have to compete
       | against an additional pool of strong students who aren't
       | especially interested in MIT's offerings, but have parents
       | pushing them toward the least expensive of all top universities.
        
         | janalsncm wrote:
         | It's not an unintended consequence. Another way of phrasing
         | your concern is "MIT will have an especially strong applicant
         | pool" which is a desirable outcome.
        
           | crowcroft wrote:
           | 100% agree, isn't this the meritocracy we want?
           | 
           | The other side of this is saying the status quo is; as a high
           | school senior with wealthy parents, you don't have to compete
           | against as many strong students if you apply for MIT because
           | it has high barriers to entry (that aren't based on merit),
           | and so you should apply even if you aren't particularly
           | interested in their offering.
           | 
           | Also, the reality is most kids will be applying for all of
           | the schools. MIT might want to improve their yield rate.
        
       | Yabood wrote:
       | UVA does this for households that make less $100K. Hopefully,
       | they'll follow suit and bump it to $200K as well.
        
       | 999900000999 wrote:
       | >Newly expanded financial aid will cover tuition costs for
       | admitted students from 80 percent of U.S. families.
       | 
       | What percentage of MIT students...
       | 
       | Two teachers in a HCOL city are going to be above 200k.
        
         | petesergeant wrote:
         | https://sfs.mit.edu/undergraduate-students/the-cost-of-atten...
         | 
         | > 58% of full-time undergraduates received [some form of] MIT
         | Scholarship [but not necessarily a full one] during the
         | 2023-2024 academic year.
        
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