While modern-day college tuition costs rack up to $90,000 a year, Ivy League institutions proudly advertise their “debt-free” education, claiming to meet 100% of students’ demonstrated financial need. The formula used by institutions nationwide, however, disproportionally excludes middle-income families from such promises, making it virtually impossible for students to get a top-tier education without stepping into significant debt.
Most private institutions utilize the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service (CSS) Profile, requiring families to report all current investments to determine financial aid eligibility. These metrics may appear unproblematic, but in practice, are deeply misleading. Families with sizable assets but middle-class incomes often appear well-off on paper, despite a majority of those numbers being frozen in retirement savings or long-term stocks. As a result, many students are falsely deemed ineligible for need-based aid.
“Generous” policies that meet “100% of demonstrated need” are often flaunted by elite private institutions; however, this promise is allocated only for lower-class families under a certain income threshold. Meanwhile, the definition of “middle-class” is standardized across regions, misrepresenting the realities of some family incomes. Appearing “upper-class” in the eyes of Cleveland, Ohio, for instance, a $200k salary may be deemed ineligible for need-based aid on the FAFSA despite being a “middle-class” salary in high-cost-of-living (HCOL) states like CA & NY.
Beyond the inequitable distribution of need-based aid, colleges also fail to accommodate through other methods. In particular, Ivy League institutions limit outside scholarships to only reducing the student’s share of the total cost, leaving the parent’s share — which takes up more than 90% of the total cost — completely unaffected. Scholarships exceeding this amount merely reduce the institution’s own gift aid — ultimately benefiting the school, not the student. This practice is wildly unreasonable considering the massive endowments of these elite universities — the Ivies alone exceed $190 billion. Though claiming to meet need when their practices do the opposite, these schools discreetly cheat their own students from a rightfully earned education.
Government aid must stop factoring home equity and certain assets into its need-based aid formula, especially for families in HCOL areas; excluding these numbers allows a fairer evaluation of a student’s living situation. In addition to systemic reforms, providing financial resources to middle-class families must be further emphasized. Offering lists of relevant scholarships and fellowships, not limited to strictly need-based, could help ease the process for many.
The financial struggles faced by prospective students must ultimately be addressed in strategic conversations with their family early on. Parents should start planning and investing in their children’s education as early as possible, with full awareness of how much or little aid they may receive. Students aspiring to attend out-of-state or private institutions should begin applying for scholarships, big and small, as early as junior year, as any contribution can make a difference.
It’s time for the middle-class to receive some attention — and support — in helping their next generation succeed.
