Hello everyone! I’m a current high school senior in an awkward position with college acceptances / financial aid, and am seeking some advice about my undergraduate education:
I was accepted SCEA to Yale University, my absoulute top choice school that I’ve been in love with since childhood. Unfortunately, the Yale FA Office believes my family can afford a full tuition each year, which we most certainly cannot as there are two other kids in my family. I have also received a likely letter from the University of Notre Dame, and a full tuition scholarship from the University of Illinois. These three schools right now are the main “options” I am considering. Neither of those schools will be providing FA either.
As for my personal situation. My parents have agreed to cover a specific amount of tuition per year, and will loan me the rest of the money I need, granted I take out a Stafford Loan from the government each year. We then calculated the cost of a Yale education for me. The math has been complicated, but in the end we have determined that I will have to pay back about $30,000 (including interest) for the Stafford loan and about $55,000 (no interest) for my parents’ loan. Thus, I will be paying back a TOTAL of $85,000 AFTER INTEREST IS CONSIDERED. My question concerns whether this amount of debt is really worth the experience at Yale. I plan to major in economics and either go into finance or Law School (only if I were to receive a generous scholarship). Of course, both industries have generously paying jobs that I am sure I will secure after attending Yale. Notre Dame is another option but around the same price and, in my opinion, has less connections to the finance industry on the east coast than Yale does.
So what should I do? Attend one of my least favorite schools (U of I) but for a really cheap amount of money? (Bear in mind that career entry and law school would be much harder to lock down with a state school degree). Or should I follow my dream and go to Yale with $85,000 to pay back?
Any thoughts or opinions would be much appreciated, although I do intend to take each with a grain of salt, because in the end I know there are a lot of differing viewpoints on this discussion.
I’m not going to lay my financial situation out completely because that’s a private issue. But with scholarships and savings this is what the costs come out to. Savings were included in those calculations, yes.
So your parents have the money and will loan it to you. It sounds like they want you to have quite a bit of skin in the game so that you do not develop a sense of entitlement.
For law school, GPA and LSAT score are likely far bigger factors than the name of your undergraduate school. And law school is expensive, so more undergraduate debt is not a particularly good idea if that is your goal.
For Wall Street investment banks, there is a strong preference for super-selective schools. If that is your goal, the extra debt for Yale may be worth the risk, but you have to account for the risk that (a) you lose interest in such a job and career direction, or (b) you are not hired into any such high paying job that will allow you to pay off the debt quickly (even at fast-track-to-Wall-Street schools, not everyone who is interested gets hired). Also intra-family debt can be a source of intra-family conflict if you have difficulty paying it off promptly, especially since your parents apparently need it to be paid back (otherwise, they would have offered to fund your college money without the loan).
And I really value that initiative they’ve taken, @TomSrOfBoston I’m just wondering whether it’s worth it? I know they’ll work with me and I know my heart is with Yale, but I’m looking for more opinions. They’ve always held me to a high standard in terms of being independent. This is the final step in the ladder I guess.
So you have 2 choices – Yale/Notre Dame or UI. The first 2 schools feel even in cost. Hmmmm…I’d choose Yale…mostly because I don’t often buy into the “I’m 18 but I already know that I"m doing grad school.” That could change in the 1st semester…so I would go for the optimal undergrad experience.
@SouthernHope very good point who knows. I do believe more firmly in the Econ aspect though. That’s a highly preferred career path for me. And perhaps I would do grad school after a few years on the job. Who knows? But do you think the “optimal experience” at Yale is worth that price tag for me?
If you do go to Yale, you will be psychologically committed to getting a high paying job out of college. Which is just fine, if that is what you want to do (that is what most people do BTW- grad school is not utopia). If you really want to go to Law school or grad school, then the debt is not worth it.
If you want to go to Yale, I think you need to make a commitment in your mind that you are going for the full-on, awesome undergrad experience, and when you graduate you are going to go out and “work for the money”. There is nothing wrong with that and many kids go that route and you will have EXCELLENT options at Yale to get into big investment houses. In that case, the debt would be worth it.
On the flip side, if you are an ‘academia’ type person, and think more school is in your future - then follow the money at U Illinois and save the money for grad school or Law school.
Note that you may be able to secure campus employment at Yale at $12/hr minimum. You can also work in the Summer. During Summers after Sophomore and Junior years you may be able to get a well-paid internship in the financial industry. If you can commute in the Summer you may be able to save some serious money.
If your siblings are in college simultaneously with you then you might qualify for finaid at Yale (you can play with their NPC to verify). Be prepared that Yale tuition/room/board will go up roughly 4% every year (including this year).
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Bear in mind that career entry and law school would be much harder to lock down with a state school degree).
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BS that law school would be harder with a state school degree. A friend of mine’s DD is graduating from Bama in May and has law school acceptances from Vandy, Notre Dame, Georgetown, Florida, WUSTL, Wake, and more…and all with very large merit scholarship offers.
First of all congratulations for the wonderful choices you have in front of you.
Would Yale allow you to defer for a year so you could either earn money to save for college or take classes locally to knock out some of the pre requisites to keep your costs low?
And do your research truly look at outcomes and talk to the schools to see which truly has the best ROI for what you want to do.
Be wary of any recommendations people give you when anecdotally they are for a sample size of one or a few kids.
Yes, and be wary of people recommending to take classes at another school while being committed to Yale, it might not be allowed or the credits not accepted. Then that expense would be a waste.
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Would Yale allow you to defer for a year so you could either earn money to save for college or take classes locally to knock out some of the pre requisites to keep your costs low?
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Do not take classes elsewhere. Many schools have a policy that doing so negates the deferring.
However, if deferring for a year means that a younger sibling will be over-lapping by more years, then that could be huge savings.
BUT…if your family income, assets, or owned business is such that even two in school means no aid, then that won’t help.
This is a topic that people will fall on both sides of the conversation. My kids have had very similar choices to make and both chose the loan path. Each could have gone to our state school for free and instead will have loans to payoff . In your situation, if Law School was definite then take the money as you obviously are bright and hard working and no reason to think that will not continue, thus high grades and law school acceptance should be obtainable.
If working in I banking or doing something else at a highly ranked firm in NY is your goal then invest in yourself and take the loans. Coming out of Yale with a Finance or Economics degree will give you a great shot of obtaining that goal.
We discussed this in our house and the conversation was to think of the debt/loan similar to a loan to start a small business.Picture using the money to open up a Subway franchise,you are paying for their expertise and their name brand to hopefully make you a nice living with a lot of hard work and sweat.
Relate those same thoughts to your education at Yale.Their knowledge and name brand being used to open the door for interviews and a career on Wall Street.
Neither is right or wrong for everyone, but you just need to figure out what seems best for you over time.
My oldest son starts his job when he graduates in May, and as of now is still happy with his choice. My next son starts his college career this fall. So who knows.
Best of luck, and neither is wrong but one might be more right for you.
Yale does take transfer applicants (and transfer credits), Yale does have GAp year. Not saying the student would be a transfer. One if interested should discuss with the school to determine what options are possible.