But getting to professional fee's
Yes, we are living in a very uncertain enconomy and I can understand where "Soundtrazz" is coming from being a University student. Many instructors from my own experience once they know someone is in college, etc. usally have a slidding fee. Simular to what some Instructors do for Fire Fighthers/Police Officers, etc. with a valid ID.
Many times in my experience if a student can "see" the percieve value for what they are getting for their money they have no problems with paying a little more. But it seems in this case it may be a little beyond his budget.
And then again, when you have a "Professional Instructor" that needs to meet there household needs, overhead for there school, the value of there time. I understand where your coming from totally on that too.
Me being a prior school owner myself

When I had my school in Massachusetts the called me a McDojo because I charged $150 a month with $250 down. With a student coming 3-days a week for Instruction this on a contact for 12-24months. As I would tell my students there are many ways we can get you started (slidding scale) but I can't change the bottom number.
In essense I agree with Guru Casto. But I also know what our student is coming from. It's a delicate balance on both.