Financing an education

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<p>Sort of. Their financial aid eligibility can vary wildly from school to school. MOST schools do not guarantee to meet the full need of all accepted students. SO their family contribution whatever it is would be the MINIMUM they would be expected to pay for their kiddo to go to college. The financial aid awards could vary by THOUSANDS of dollarss (I don’t think the’s “close”). If the kiddo applies and gets accepted to a school that meets full need beyond the family contribution, their aid there could very well make the total out of pocket cost LESS than it would be at a school that only provides federally funded need based aid (which is the case at a lot of schools).</p>

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<p>You make it work. A lot of higher education is a case of getting back what you put in. There are kids who sleepwalk through a top 20 education and those who squeeze every drop out of community college. Our local community college regularly sends kids onto UT, Texas A & M and even Ivy League schools ready to succeed. </p>

<p>Because my spouse is in the military, I’ve attended eight colleges that vary widely in reputation. I learned a trick early on to write down the names of books that professors mention in class. Then I would read those books during the semester and make reference to them in papers and exams. I know I got more out of those classes than someone who took the same class at a name-brand university but only did the minimum required.</p>

<p>I have indicated in other posts our situation. We gave our oldest carte blanche in terms of college choice and he chose one of the priciest options. Now he is 27 years old and we are still paying on those loans and will have the full amount from his four year to pay until year 2012. We won’t be done paying until 2016. Long sentence to serve. Very painful considering we have 4 other kids’ colleges to pay during that time with our youngest starting in 2015. We figured we would manage “somehow”, and I can tell you that our “somehow” really hurts. Means pinching off the other kids’s options.</p>

<p>Thanks for all the responses - there is some great information and opinions shared. I read the replies this morning and pondered them for a good portion of the day.</p>

<p>To give a littel more information, we are looking at abut $21K for tuition/r&b at either Northern Illinois U or Illinois State U. If I assume the S takes the Stafford, we’re looking at about $16. He is not interested in U of I - these are good not great schools. Although there are some good things happening at ISU.</p>

<p>We have been accepted at another school and offered $13,000 merit scholarship annually. He is looking currently at a Finance degree. This school has a much better business school - top 50 based on UNSWR. There we are looking at $40K less the $13K less the Stafford $5.5K and work study - let’s call it $20K.</p>

<p>So incrementally, I am looking at $16K (he has to graduate in 4 years, keep a certain GPA for the merit, and the amount will probably be higher) - without considering community college. </p>

<p>And if push came to shove, I think we could pay close to $1K a month. All other things are good - health, retirement, job status, no other kids going to college, etc.</p>

<p>I am still not completely settled in my mind on which way to proceed. Part of me says to take on the burden - but I don’t want to be one of those that has mistakenly done so. I know that’s a question we have to answer.</p>

<p>I am better equiped to make that decision due to this board and the strength of your replies. </p>

<p>Thanks, again. Please feel free to add comments/questions.</p>

<p>Seems like you have the same outlay no matter what the choice is - state school vs. the other with aid. I wouldn’t like my kid taking on $22,000 in loans over the 4 years, but somehow maybe you could find a way to pony up a little more.</p>

<p>Community college has been mentioned as an alternative. While I believe that community colleges are are good thing there are some things to consider about that route. </p>

<p>Look and see what you can get done at the CC verses what remains when you transfer. My son’s friend went that route for engineering. He has finished his AA degree and has his general ed requirements completed (or just about). However, to get the degree in his choosen flavor of engineering, he figures that it will take him 3 more years at the 4 year school. Some of it is timimg. The order of classes (ie. prerequisites and series of classes) is what drives this. The engineering level classes just weren’t offered at the CC. If he has issues getting the classes he wants to get into, it could well take 4 years. Other fields probably don’t have this issuse. So it pays to investigate and lay out a specific plan.</p>

<p>At least in CA, the percentage of students intending to go the CC to 4 year route that actually get a four year degree is rather low. This is from the state’s report on CCs. Can’t remember the exact title of the report but I found it online when looking into this a while ago. Doesn’t say you can’t do it. It is up to you to push yourself, but that’s true about any CC or 4 year school. So, again, make a plan a stick to it if you go the CC route.</p>

<p>One of the challenges with the CC route is to plan very carefully. Not all of the classes offered at the CC will transfer to a four year school. It is very important to work with an adviser in planning each quarter’s schedule. Otherwise the student could end up with more than 2 years at the CC before transferring. That said, I chose the CC route back in the dark ages and it saved me a lot of money.</p>

<p>As for student debt, I had loans and I fully expect that my children will take on the maximum amount of students loans as well. It is important that they have skin in the game.</p>

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<p>Couldn’t disagree more. Congrats on taking the CC route - it CAN work, and I think that finances are an IMPORTANT consideration in planning a college career. However, I disagree on the student loans. Life is about options, and exiting college with a huge debt limits the options. I worked my way through school (Ga Tech - undergrad), so it took me longer than the normal 4 years, basically because of the work (co-op). I graduated with minimal loans (approx a third of a year’s tuition), which I was able to repay quickly. </p>

<p>But when my son graduated in 2009, there was no debt at all, and I was able to follow his college advisor’s advice of supporting him for 6 months while he started his own business. That worked extremely well and now he’s successful and happy. That might not have been possible with a big debt burden.</p>

<p>OP, I applause your effort to give your son an education where he wants to. I think it is entirely doable.</p>

<p>Total COA 40,000 - meirit aid 13,000 - 3,500 subsidized Stafford - 1,750 subsidized Perkins, - 3,000 w/s = $18,750. You said you could pay 12x1k = $12,000 a year. That leave a gap about $7K/year. </p>

<p>Your son should be able to earn $4 ~ 8 K in summer jobs. So, it will be stressful but doable.</p>

<p>Re: the CC route. One of the MOST important things to do is check to see which four year colleges have articulation agreements with the CC you are attending. If the CC and four year school have an articulation agreement, your courses will transfer and you will be accepted if you meet the academic standards set. Re: transfer to a larger public university…you DO need to check carefully for course sequences and the like. For example, transferring for the spring semester…and planning to take something that is only offered in the fall just won’t work…and you might not be able to take the next course in a sequence either. It takes planning…but it CAN be done.</p>

<p>If the family can afford $12K/year it’s doubtful they would qualify for subsidized Stafford or Perkins.</p>

<p>Double post</p>

<p>Erin’s Dad - not sure about that. Our EFC exceeds $12,000 per year and my son had a Perkins loan for freshman year and has a subsidized Stafford loan this year.</p>

<p>Perkins loan eligibility is determined by each school. We also got a Perkins for DD…believe me, we are NOT low income.</p>

<p>Live and learn…</p>

<p>The finance major makes me feel better about the OP’s plan. It is more likely his son will be able to pay back his student loans than with a less practical major.</p>

<p>Thanks for the continued replies. I think it’s great that some can manage a child graduating without debt - but that will not be the case for us (unfortunately). I do think we will be in position to reduce his debt by the end of the 4 years - so he is not carrying the full Stafford. </p>

<p>The more I think about it, we just need to develop a well thought out plan - that includes my son working to reduce the expense.</p>

<p>Don’t forget, you can usually “waive” the student health insurance if you have your own family health insurance. This can knock off about $1,000/year. </p>

<p>Most schools offer Tuition Managment Systems or similiar plan, where you pay TMS about 10 months out of the year for a $60.00 enrollment fee. (like paying for home heating oil on a budget plan) So try not to think of it as two large lump sum payments!</p>

<p>Take a close look at these & maybe look around for better deals:</p>

<p>Life Insurance
Car Insurance
Home Insurance
Cable/Satellite TV
Cell phone plans
Internet providers </p>

<p>Everybody should re-examine these necessities from time to time to see if they can save a few bucks!</p>