Not necessarily true. My family made about that amount, but went without some luxuries and saved for my (and my sister's) high school ($25k/yr) and college ($45k/yr). There were a few years where tuition+room+board for my sister and I was more than their after-tax income. And no, we don't have a large amount of wealth from a previous generation, my parents started near zero just a couple years before I was born. But we never got any financial aid. I had friends who's parents made more, but got 50% financial aid. The financial aid system would appear to be just another bullshit-gamed system.