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Undergraduates with family income below $200k will be tuition-free at MIT

(news.mit.edu)
581 points gnabgib | 10 comments | 20 Nov 24 16:59 UTC | HN request time: 0.001s | source | bottom
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TheJoeMan ◴[20 Nov 24 19:26 UTC] No.42197249[source]▶
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.

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JumpCrisscross ◴[20 Nov 24 20:00 UTC] No.42197538[source]▶
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.
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changoplatanero ◴[20 Nov 24 22:06 UTC] No.42198599[source]▶
Why is the price you have to pay for something dependent on how much money your parents make? Feels so unfair
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1. mh- ◴[20 Nov 24 22:15 UTC] No.42198688[source]▶
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?

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2. changoplatanero ◴[20 Nov 24 22:28 UTC] No.42198781[source]▶
still seems weird to me. is there any other product for 18-22 year olds where the price changes depending on their parents wealth?
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3. mh- ◴[20 Nov 24 22:31 UTC] No.42198811[source]▶
Interesting question. I can't think of anything outside of the education sphere, no. Maybe someone else will chime in with an example.
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4. feanaro ◴[20 Nov 24 22:40 UTC] No.42198891[source]▶
So there is an upper limit, which is the real price?
5. bigstrat2003 ◴[20 Nov 24 22:46 UTC] No.42198927{3}[source]▶
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.
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6. changoplatanero ◴[20 Nov 24 22:49 UTC] No.42198956{4}[source]▶
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.
7. dragonwriter ◴[20 Nov 24 22:58 UTC] No.42199024[source]▶
> still seems weird to me. is there any other product for 18-22 year olds where the price changes depending on their parents wealth?

If by “price” you mean, “net price after available subsidies”, then, yeah: healthcare, housing, and food, among others.

The difference is that the subsidies are usually public, whereas the education subsidies are by the seller—but the seller is also a 501(c)(3) nonprofit, the entire premise of which, and the reason donations to them are tax deductible to the donor on top of the nonprofit being tax exempt, is that the nonprofit functions serves social needs in lieu of the government doing so.

8. Jare ◴[20 Nov 24 23:02 UTC] No.42199048[source]▶
When I was 18-22 and living with my parents (pretty normal in Europe) I worked and contributed to the house expenses. I'm pretty sure kids of rich people don't do that. If I wanted to take out a loan, my parent's wouldn't be able to provide guarantees and thus the kind of loan and conditions I had access to would be much different than those a kid with rich parents could. In University people could also get grants based on your family income.

Those examples are varied and are not the same thing as purchasing a concrete product, yet I believe they are relevant to your question - education is a service that supports society, not a concrete product for your personal use and enjoyment. How and if you get it, relies not entirely on you at that point in your life, but heavily on your parents and in general on your family as a single economic unit to which you belong.

9. orangecat ◴[21 Nov 24 02:22 UTC] No.42200441{4}[source]▶
True, although that's sort of the opposite. If your parents have resources and choose to help you out, the car loan will be cheaper. If it were similar to the college scenario, the dealership would say "your parents are rich, so we're going to charge you more because they'll be able to afford it". Of course that would never work because there's competition in the auto market, while prestigious colleges are effectively a cartel.
10. baq ◴[21 Nov 24 06:49 UTC] No.42201790[source]▶
It isn’t a mcburger. It’s an investment with an excepted variable return realized over like 4-5 decades. There’s almost nothing else an 18-22 can do that has comparable odds of increasing value of oneself in dollar terms and in impossible-to-measure-society terms than getting accepted into a good school.

(E.g. you hear about college dropouts starting businesses all the time. You barely ever hear that about people who haven’t attended college at all.)