In early 2018, Republicans passed what was to be dubbed as the 2018 GOP tax plan. This plan, which is essentially a major tax overhaul, also proposed a variety of educational tax options. While none of the major education-related measures were passed, there was an interesting tuition assistance tax that would have significantly affected how dependents of faculty and staff pay for college. This paper aims at finding the financial “turning point” where a family would elect to use financial aid instead of a tuition assistance plan. I look at a variety of income levels across more than 20 selective private schools and find at what income level a family would elect for financial aid instead of tuition assistance. This plan would have deterred a vast majority families making less than $100,000 from taking tuition assistance, making college more inaccessible for children of lower-earning faculty and staff.
This paper explores the effects that a student’s socioeconomic background has on their decision of a college major. Our data is taken from every first-year class from 2004 to 2014 at Colorado College, a small liberal arts college in Colorado Springs. We use a multinomial probit model to predict the probabilities that students chose majors in one of the main divisions along with economics. Of the 4 large major groups, we can only say that, with statistical significance, students on financial aid are less likely to be natural science majors. We also found that a student’s major category specific first-year GPA and credits play a role in their decision of a major. Gender and academic ability also proved to play a part in the student’s decision.