As my daughter works on essay analysis for her rising senior year, the question popped up, “Which colleges can I apply?”
Well, we have had some general ideas based on Net Price Calculators, but it’s a good question. What is affordability?
If you’ve browsed my posting history then you’ll see that we are a donut hole family. We make enough money to have to pay a lot for college, and being responsible we’ve saved up, which makes it more expensive. I won’t chase that rabbit down the hole again, but the question of what should our daughter apply to is a good question.
So for a family that lives completely debt free it is important for us to get our children through undergraduate debt free. If they want an expensive grad school then it’s on them. With the undergrad question in play I took on a three pronged approach.
- Net Price - Go to each school's NPC and enter the info. For us it's ugly. I don't know how anyone can look at top schools and see the $300k+/4 years starting price and not choke, even with the "generous" financial aid NPCs return. Gotta love that "You qualify for $24,000 in financial aid and only will be responsible for $51,000 per year!" Thanks generic top school for your generosity!
- Merit Aid - This is important because the NPC for most of the top schools is just too high even though we've put back 40% our take home pay for college for 7 years! If you aren't asset wealthy, and I mean in the hundreds of thousands of dollars, there's no way to make the NPC work in your favor. It's rigged, but I digress.
- AP Credit - Our daughter's high school has a nice selection of AP classes to take. We are fortunate in that sense. I know there are a lot of high schoolers that don't have that option. So I sympathize, but it's part of our equation. We use the AP credit to say, if you want to go to X school, but it's per year cost is above our budget, then maybe use AP credits to get out of a semester or year to keep the total cost in budget.
It dawned on me though, is the AP route doable? There are very generous schools out there where 4s and 5s could reduce school from 4 years to 3, saving substantial money at very elite schools. But practically speaking, is this possible or will unforeseeable events such as class pre-reqs, only offered spring or fall, class full, etc that could derail this and end up forcing a 4th year if you’ve been planning for 3 financially?
I realize that as I write this, our situation is for the mid to upper middle class family with a high performing student that is shooting for the top schools. This student will be competitive for top schools (merit) and has a very difficult/competitive GPA (AP classes).
But maybe this discussion will open the eyes of parents new to the process or hadn’t considered the entire package.
One thing I must say. Our daughter insists on applying to Columbia. She wants to eventually practice law in NYC. I love her drive and passion, but it concerns me. It absolutely fails our affordability test. She’s as competitive as anyone else to get selected and if she does we can’t afford it. I don’t know what to do. There is a scenario where a generous school like Princeton or Stanford accepts her and she could get Columbia to compete, but I’m just as likely to sprout wings and fly too close to the sun.
Anyway, the human factor of desire and dreams could make all this financial planning go to crap.
And to throw more into this discussion, where does UChicago rank on affordability? Is it in the Harvard, Stanford, Princeton scale? Is it more like Yale, Brown, Cornell, Penn? For those wondering, the distinction is that home assets are not used in the first set of financial aid decisions. The exclusion of home equity makes them more affordable for our family.
I wish she’d give up the Columbia dream. Yes, I know the odds, and she does too. But plan for the worst and hope for the best.
Have a great time tearing me apart on this!