So I read in the NY Times today that Harvard is going to increase financial aid
to middle class families so that they would pay approximately 10% of their income. The fact is, Harvard can do this because they have a $35 Billion endowment. This is fantastic news but raises the question about why it costs so munch in the first place. It costs $45,000 per year to attend this school and those like it, and those like it. Think about that – if my three (3) children wanted to go there it would mean that either I would have to save or they would have to take loans for $540,000. Over a half a million dollars!!! Now I’m not saying its not worth it – or am I. I just don’t get it.
Why does it cost so much – this is the average for top quality schools in the US. You have the information – the stuff they learn. The teachers – the way that its taught. The tools – facilities, classrooms, labs, etc. The dorm rooms and social/athletic stuff – not even that big of a deal. I’m amazed.
I guess the endowment will help. And I suspect it proves that it really doesn’t cost that much to attend these schools. From another article in the times a few weeks back:
Officials said the policy would cut costs by a third to 50 percent for many students and make the real costs of attending Harvard comparable to those at major state universities.
This will make it even more competitive to get into Harvard, unbelievably hard. Imagine now all of these upper middle class students – who have not even tried anymore – applying. Interesting shake up. My kids, at this point, are smart enough to go to any of these schools. Will they mature in a responsible manner, study hard and have the grades to continue on that path – I have no idea, only hope for the opportunity. But this does change things as I had always ruled out Ivy League as an option.
