Dive Brief:
- The Lumina Foundation has released a framework called "The Rule of 10" that sets a benchmark for how much families of various income levels should be reasonably expected to pay for college.
- The Rule of 10 says families should be expected to contribute 10% of discretionary income from 10 years of savings along with student earnings of 10 hours per week while they are in school.
- Discretionary income, under the framework, only gets tallied when family income surpasses 200% of the poverty line.
Dive Insight:
Inside Higher Ed reports that reactions from financial aid experts include general support of the concept of defining affordability in a way that creates a threshold for policy makers, but many do not think Lumina arrived at the right numbers. The framework comes during a rush of debt-free college and free community college plans, in part sparked by the presidential campaign. The Lumina Foundation’s report attempts to bring the conversation to more realistic ground, acknowledging that students and families should have to contribute something for higher education.