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

(news.mit.edu)
581 points gnabgib | 3 comments | 20 Nov 24 16:59 UTC | HN request time: 0.443s | source
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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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1. Dylan16807 ◴[20 Nov 24 22:30 UTC] No.42198802[source]▶
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%.

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2. jedberg ◴[20 Nov 24 23:42 UTC] No.42199349[source]▶
You usually can't sell off 5% of a small business. A sole proprietor is not going to issue stock for 5% and get any buyers.
3. baq ◴[21 Nov 24 06:40 UTC] No.42201751[source]▶
There’s no market for limited partnerships in mom and pop shops. The whole thing may go for a low multiple of yearly revenue, like 2 or 3x.