I’d absolutely go to Williams. Living at home and going to Rutgers, and with the uncertainty of the pandemic, sounds pretty depressing. Williams is doing an outstanding job with their covid response which means a somewhat normal college experience. The reputation of Williams along with their amazing alumni network makes it highly likely you’ll land a very good job. Also, your family will qualify for more aid when your siblings enter college. I think you will regret it for the rest of your life if you don’t attend Williams.
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Well, it was pretty close to how I read it, as well. The missing ingredient here is the parent’s signature on any loans over and above the federal guaranteed maximum. Care to take bets how well that’s going to go over?
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lol
Note that the OP’s siblings currently attend Rutgers.
Oops!
Unfortunately, what you describe is a very common conundrum for middle-class families requesting need-based FA. The fact that you live in an expensive home with no mortgage is almost guaranteed to result in a relatively small grant award. In effect, your parents’ frugality is working against them. What you describe as diving deep into their savings might in another family have been sitting in a Section 527 account all this time. But, now is probably not the time to try re-educating them about such things.
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It’s pretty hard not to live in an expensive home in NJ, a $500,000 is modest and comes with an annual $12,000+ property tax bill. I assume the savings being discussed isn’t retirement savings. If the OP’s parents agree to co-sign for private loans, I think it’s fair to have the OP agree to put the loans in his name after graduation.
I agree we can’t know every fact and nuance in OP’s situation, which is why a range of thoughts and opinions is valuable to the OP, who can pick the ones that make sense for him.
A couple of things. Someone upthread did a mathematical calculation trying to show what the outcome of loans would be. The assumption of a $120,000 salary for 10 years – or even 3 years – is flawed, as investment bankers get annual bonuses that increase pretty dramatically. (It goes w/o saying IB is a risky career path, and bonuses are not guaranteed. )
If the OP is smart and driven, though, the odds of succeeding in IB go way up.
(Side note, if we are talking anecdotes, one of my sons is an investment banker, and he is aware of a bunch of job openings).
In a recession I would much prefer a Williams degree over a Rutgers one.
Finally, OP talks about his parents savings needing to go towards his college expenses. Of course they should!! (Note, he did not say they were retirement savings).
There are two very legitimate points of view on this thread, and OP will decide what makes the most sense for him. I come at this as a child of immigrants from a culture that values education, and education from the best possible school. Both parents and kids work hard to make that possible. Other people have different values and emphases that work for them. The OP just has to figure out what is right for him/his family.
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I was so close to putting the actual numbers/odds into the “well-done” calculation by @1NJParent. It would make this a no-brainer IMO, but felt people with opposing views would not appreciate - or agree on the numbers.
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Well there you have it, even at Rutgers you say you would take loans to help your parents. Your dad despises borrowing, so what are the chances he’s going to agree to take out/co-sign $100K for Williams? You can’t borrow that without him.
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It’s not about who thinks he or she has the superior answer.
OP, if you want to discuss this further, would you like to lay out the actual offer?
Of course, Williams is great. But this isn’t pie in the sky, “all things being equal.” Or what worked for someone else, decades ago.
It boils down to, “Is it affordable?” And that’s a rational issue, not romantic or anecdote or drive-by opinion.
I’d note, paying off 100k over 36 months equates to about 2800/month, plus consideration for any accrued interest. At 90k salary, 5600 take-home, living expenses, living a life, that’s hefty. Yes, bonuses. But who here knows how much, whether OP would walk into that level job? Or last?
Be rational. If only for the thinking exercise.
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Thanks @lookingforward for your balanced thoughts.
Let me try again to put this into perspectives. There’s currently another active thread on career paths that are either elite or bust. A Wall Street job is one of those. It’s a business dominated by “superstars”. There’re people who make 7-figures, 8 figures, or even 9-figures, and but there’re far many more who had very short careers on the Street because of either exhaustions, or lack of productions, or competitions from younger newer hires. Starting analyst jobs are fairly low level and don’t really make more than other professional jobs when normalized by the long hours. There’re also so many econ majors, not to mention others, from schools like Williams who are vying for Wall Street jobs. Looking at the longer term, the business of financial services is ripe for, and the prime target of, technological disruptions. So one needs to take that into consideration as well.
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100% true
I know you’re jabbing at me.
Imo, this isn’t about telling a kid what’s better. It’s about the various considerations.
It’s got a lot to do with the parents’ position. And OP’s other options.
Btw, we don’t know what parent “savings” this would take from.
Lots we don’t know.
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Not at all. I thought that, relative to most of your posts, that was balanced. I was trying to encourage you.
“Relative to most of your posts.” ?
Let’s keep this to OP and his challenge.
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just teasing you
Yes all true but he could also graduate into a terrible job market ( likely given where we are a nation) and not be able to make important life decisions due to debt. I’ve worked in IB and capital markets. There is a certain type who succeeds, hard working pretty aggressive and able to interact well with people. Few kids from even the best schools get into this field. Those who do often stay a short time. You need to stay long enough to really leverage the $.
He could also attend a top graduate program after working a few years and get the credentials and go in that way. Lots of Wall Streeters went to Rutgers. And he could then go into IB/etc. with experience.
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Yes, he has options.