I have around 200k in investments and 50k in cheque account, resulting in 70k per year fee.
Even though that would completely wipe out my savings without paying the full amount...
* If you have a net worth of $250k and they calculate you can pay $70k for the first year, estimating full payment as $70k * 4 ($280k) isn't right. Your net worth will be lower next year, and they'll consider that.
* Their goal is to charge you the most you are able to pay, and someone with $250k in savings is able to pay $70k.
I think this is all a bad system, for the same reason that a 100% marginal tax rate is a bad idea, but it's not quite as nuts as you're suggesting.
I was just giving an example to demonstrate how bad their calculator pricing was (280k fees < 250k savings without selling house) if you wanted to make it more realistic I would also take into account that my investments grow too.
>Their goal is to charge you the most you are able to pay, and someone with $250k in savings is able to pay $70k.
Seems pretty bad to me. Wouldn't pay 7k/year for BU, much less 70k.
Sorry, are you saying the net worth you put into the calculator was more than $250k? Then $70k is even less surprising!
(If colleges ignored home values you could put your $250k into repaying your mortgage faster and report having no savings. They'd charge you $0. And if you needed money later you could borrow against the value of the house.)
Never said it was impossible for me to pay, just said it was still expensive.