It still raises the barrier to entry since the kids who can't technically afford the school now have to not only qualify to be accepted, but also qualify for the scholarship. The latter is not a guarantee.
I think the "loans" part should be removed, myself.
Everyone I knew from high school that attended private schools, or “good schools” out of state paid out the nose (or their family did). I grew up in a relatively affluent area, so most people didn’t get much aid. My family could afford to pay for my schooling too, but I had one of the lowest bill of anyone, excluding some in-state public schools, because private schools with big endowments heavily subsidize almost all students that aren’t rich foreigners, 1%er kids, GI bill/someone-else-pays attendants.
TLDR: Schools know who can write a blank check, and they set the sticker price based on those students. Everyone else is subsidized.
https://www2.montgomeryschoolsmd.org/siteassets/schools/high...
So it can be strangely worthwhile to sell all your non-retirement investments and buy the biggest house you can find.
So for example: for incomes in the $65-100k range, the median net cost is $5,701 with 99% receiving aid.
I think this is the correct route. I don't see anything wrong with wealthy families paying a high sticker price as long as admissions is mostly need-blind, and students with less resources get a break.
pay as much as you and your parents can pay and/or borrow[1]
TFTY
https://college.harvard.edu/financial-aid/how-aid-works/type...