<p>Almost everyone has heard of Dave Ramsey by now. And for those of you who haven't he is probably one of the most renowned financial gurus in the country right now. I am taking one of his seminars and I was shocked when I went to class last night and listened to his video presentation on college planning. In a nutshell he says no one should EVER send a child to a private college because of the cost and debt involved. </p>
<p>Well, as someone with two kids at private colleges, I must say I totally disagree! Both of my kids received substantial scholarships and their cost will end up being the same as a state school. This is the case for many other kids I know too. I think it is wrong and irresponsible for him to make such a blanket statement. </p>
<p>Anyone else have experience with the Dave Ramsey seminars?</p>
<p>I’ve never heard of him. In any case, his blanket condemnation is stupid. There are plenty of people for whom the cost of a private institution is significantly lower than any public. Just to keep it purely a financial discussion.</p>
<p>However, if I followed that advice when considering my college options, I’d not only have ended up paying a bit more to attend my local public colleges, but also do so while commuting from home and feeling like I’m repeating high school and at a much slower pace due to the prevailing institutional prioritization in place back then. </p>
<p>Also, with the given funding I may have actually graduated with more debt to boot…no thanks. At my private LAC, the only loan I ended up needing was a 3 figured loan for senior year. Paid off within six months of graduation.</p>
<p>It’s rare, but some people can go to Harvard for less than they would pay at a state school. They should still go to the state school, and pay more? Really? </p>
<p>If he truly made such a blanket proclamation about such a complex and nuanced topic, it makes one question the value of his advice and expertise.</p>
<p>Used to like listening to the radio show and sorry my local station took it off. He also discusses how important it is not to let them move home after college. I chewed on that one for a while, then realized how many advantages my first graduate- and the whole family- would have if she does happen to be based at home, at least in the beginning. But I did tell her she will contribute to expenses. (A small amount.)</p>
<p>Our state U would also cost more than what we paid for private, considering aid. Other details made it the wrong choice. I suspect Ramsey is whirling up his money-making potential and this is the “untapped niche” he found. Others explore how to make FA work for you; so he needed a different talking point-? </p>
[quote]
Ramsey is also the creator of Financial Peace University, a biblically-based training series for adults that integrates video teaching, class discussions, and small group activities as well as a companion series targeted at teenagers that has been offered in schools across the nation. The video series lasted for 13 weeks until August 2012 when it was relaunched as a nine week program. Some topics covered in the series are cash flow planning, investing, saving, credit, retirement, and giving.<a href=“wiki”>/quote</a></p>
<p>He probably should have said never pay the sticker price for a private college unless you have a pile of cash set aside that you are darn sure you will never need for anything else. That’s likely what he meant. And, the actual cost for most students has little to do with the sticker price which is a crazy system IMHO but he really should know that.</p>
<p>Pundits, commentators, etc. seem to think people don’t have the attention span for a nuanced argument about anything. All advice and opinions must be black and white, good and bad, yes and no, when in reality, most of the time the answer falls somewhere in between. Did anyone see this hilarious Jon Steward segment on this point:</p>
<p>The old “never” say “never” is often true. I don’t like a lot of his advice. Too insistent and repetitive. I like to go to a Starbucks for a latte every once in a while, because it’s my “social club” and a lot cheaper than joining anything else and more conveniet. Worth the “fee” to me. His methodology doesn’t allow such exceptions. He’s just too adament about his ideas.</p>
<p>The more realistic informed advice would be more like:</p>
<p>“You don’t have to send your kid to a private college and pay full sticker price.”</p>
<p>Private schools give out merit and/or need-based aid that often dramatically lowers the net price. It is very possible to send your kid to a private college for a price that isn’t much more than the big state U. And sometimes a private is less.</p>
<p>My daughter is attending a private college that is much much cheaper than our in-state flagship, because of merit aid. The facilities for her major are excellent. She also doesn’t have any classes larger than 30 students (even as a freshman) and is able to play on a varsity sports team (which would never had been possible at a larger university). Most importantly, she is happy there.</p>
<p>Three other private universities also offered her merit aid that resulted in lower costs than the in-state flagship, which offers very little aid.</p>
<p>She also looked at some other public universities that offered her major. One squeezes all freshmen into triple rooms, and was in a small isolated town. People she knew who attended that college were all unhappy. Another was 4 hours away, which was too far away from all of her friends. A third had severely overcrowded and outdated facilities in her major, and a gym that looked like it was surplus from the Democratic Republic of East Germany.</p>
<p>Most of the public universities in my state are still experiencing faculty layoffs, increasing class sizes and program eliminations, because of state budget cuts.</p>
<p>We saved and invested so that our kids could go to a private college if they chose. Pretty sure our D would not have been happy at our state flagship–it’s just too huge.</p>
<p>I attended his entreleadership program for small business people. He actually had sound advice, and he is all for if you have the money and it’s important to you, then do it. But the idea is, no credit card debt, 6 - 12 months expenses in the bank, saving for college and retirement, work on paying off the house - after that, what you do with your money is up to you. I’m guessing he wasn’t clear enough saying don’t spend what you can’t afford.</p>
<p>Dh and I have listened to him on the radio occasionally in the past, but lately he seems so rigid. This college advice is ridiculous. I don’t think that’s what he was really meaning to say, but in order to appeal to the least common denominator, he has to make his advice so simple as to be incorrect.</p>
<p>A complete moron. My daughter attends Harvard on Full Financial Aid. My parental cost? Zero. Let me say that again. I haven’t paid one dollar to Harvard in 3 1/2 years. We couldn’t have afforded community college. I’m horrified people will listen to this stuff and not understand the money available at private schools.</p>
<p>My d attends an out of state private LAC for 1/3 the price our state Us. (that’s excluding the outragous holiday air fairs)</p>
<p>He also wants you to pay-off your house. If you have 3% fixed loan, then I’d take that advise with a mountain of salt. His advice about credit cards, car loans, spending within your means is sound. I would nver leverage my home or IRAs to pay for college–i’m just too old. But I would pay for kids school before paying down a low rate home loan.</p>
<p>All that considered, I’m glad he’s on radio blabbing. I hope thousands of families follow his advice. Less, competition for us savy moms in the know!</p>
<p>Dave Ramsey gives some very dubious higher-order financial advice. His basic points on simple domestic economy can be helpful to those who never learned how to budget, or to those who have fallen into the trap of easy consumer credit and need to cut up their credit cards. But for everyone else, his advice is pretty useless.</p>
<p>This is akin to a financial planner being asked about FAFSA and CSS Profile. Don’t expect any good recommendations in an area outside the speaker’s normal knowledge.</p>