Let's say there are 4 kids, each with the same qualifications. Here's how the monies would be distributed by family income:
1. High Income family would pay $60k (no financial aid)
2. Middle Income family would pay $35k
3. Lower-middle family income would pay $15-25k
4. Low income family would pay next-to-nothing.
For this discussion, assume the "actual" cost to educate a kid at Wake Forest is $40k. Parents of student 1 are basically subsidizing students 3 and 4. Wake loves high income families, as the whole model would break down without them.
Unless a student from a high-income family is in the very top 1/10th of 1% (and Wake is competing for Harvard for the kid), that student isn't going to get any money based solely on merit. As I mentioned, less than 5% of financial aid at Wake is based solely on merit. The college FA and merit scholarship people directly told me this. So about 50 of the 1,000 students in a WFU class are benefitting from scholarship money based only on their accomplishments. There are plenty of other qualified kids on a waiting list who will take your kids place if you don't like this system. I told folks at the college that my son will probably be leaving, and they basically said "nice knowing you".
So here's what happens - Student 1 from the above example can either pay the full price at Wake or pay substantially less at a top public university. Also, Student 1 might be attractive to a lesser-prestigious private college. Roanoke College would probably offer Student 1 some merit funding, as Student 1 far exceeds their criteria. So here are the choices:
Wake $60k
William & Mary $30k
Roanoke College $30k
Unfortunately, in reality, the process is even less fair. Student 1 could be a far better candidate than students 2-4, and the same process would take place.
This experience has made me very cynical. Private colleges such as Wake are a business, and they primarily care about your money. And there is no effort to try to minimize cost. How many assistant and associate deans does the college really need? I don't care how much money you make - $65k is a lot of money and its not a good deal.
Good luck to those of you out there with higher income and younger kids, who think that their kid is going to have money thrown at him or her because he or she is smart and gets good grades.
