<p>I got a bit of a conundrum. I was accepted to a top 5 school ED (usnews ranking) and received my financial aid package. I got no money whatsoever as my family's income or assets is too high. Is it worth it to go here vs a cheaper school where I might only have to pay 15k out of pocket vs 65k. I'm also planning on going into consulting/investment banking after college and I know they like prestigious schools. Should i pay the big money to go to ivy league or should I save the money for whatever I want after graduation?</p>
<p>You won’t be paying the big money unless you are over 24. Your parents will be paying the big money.</p>
<p>What do they say?</p>
<p>^^Good point @thumper1. My dad says he has no qualms with paying for it. He wants me to go to this school. Im pretty sure most of my tuition is saved up at this point but I guess I’m the one having reservations. $260,000 is a lot to ask a parent for. Im leaning towards the ivy but advice/suggestions would be welcomed.</p>
<p>If they’ve saved it and that’s how they want to spend it, take money out of the decision making process. Pick the school that is best for you. Don’t focus on the name or prestige, just pick the school that is best for you. That might be Ivy, that may be smaller LAC, that might be big state school.</p>
<p>Honestly, if this is what your parents want to do and it’s within their means I have to agree with @twoinanddone. You’re fortunate in that paying for college and student loan debt won’t be a factor in your decision. Take advantage that and go to the school that you want. If it happens to be the Ivy, you’ll be in the heavenly situation where what you want and what your parents want for you are the same thing. </p>
<p>First, great job and congratulations.</p>
<p>Definitely go to the Ivy. $260k seems like a lot to you now but frankly it wouldn’t after you get into consulting/i-banking. You can pay your parents back if you so choose. If you said you have a different career plan I might have given a different advice.</p>
<p>you really dont have a choice… ED IS BINDING.</p>
<p>Yes, congrats is first order so you can feel good about it. But I am confused why this is just coming up now and wasn’t part of the decision to ED. Did the NPC indicate you would get any aid? If it did, you can have a discussion with the school about that. </p>
<p>Yes it is a huge amount of money. If it was going to be debt I would say that is unwise in the extreme. But if they have set it aside for that purpose then that is another story. Do you personally think it is more than they can really afford? Or just the price is just big money like you mention and you can go somewhere for a lot less. If you want to help you can take your student loans, which would be not too much if you do get a IB placement. But remember, things happen, like graduating class in 2009 had a lot less offers than some kids like you expected going in.</p>
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It’s moot now since ED is binding. But it would have made better sense to save the money for a prestigious business school, since a lot of the high paying consulting/finance jobs will require an MBA.</p>
<p>Better performing business analysts in investment banking/consulting will typically get an offer to return as associate post MBA with MBA costs paid for by employer. The key is to do exceptionally well in the Ivy undergraduate in a hard sciences field. The rest of the path will then be laid out for the student. There is a real battle for talent out there.</p>
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<p>No, it’s not. The claim that it’s binding is a total paper tiger since the ED agreement clearly indicates that an acceptance can be denied if the money offered isn’t enough. This student clearly APPLIED for aid, and got none. The fact that his dad has told his son that he will pay doesn’t change the fact that the STUDENT is bothered by the cost and lack of any aid. </p>
<p>Let’s get past this whole nonsense that ED is binding because clearly it’s not. Even a student who doesn’t even apply for aid can decline simply by stating that finances have changed and the school is no longer affordable.</p>
<p>The term ED came 10+ years ago when maybe it had more bite. At that time, it was largely used by full-payers. Since schools have felt the pressure to entice those who want aid to apply ED (so that it wasn’t just a rich-kid’s advantage), the “binding” aspect has diminished because accepted students can simply say, “not affordable.” </p>
<p>@ZBD5421 </p>
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<p>From what I remember when I was high school, ED existed a lot longer than that.</p>
<p>Every single person with the credentials to get into a top 5 school can get a substantially cheaper education at very good state schools, and a free (or nearly free) education at decent schools. There is NO REASON that this should be an issue as decisions are coming in. Parents, discuss this scenario with your kids before they apply (really, before they select schools for applications).</p>
<p>^
Agreed, and the family should have filled out the NPC. Maybe they did and there was an indication of aid? Maybe the family owns a business or something that caused the NPC to give bad results? </p>
<p>Or, maybe the student just naively believed the marketing from the univ that suggests that nearly everyone gets a lot of aid.</p>
<p>If the parents can easily pay the full cost w/o mortgaging their property or taking on big loans, then the student should just accept his dad’s word that he’ll pay all costs. That said, if the dad is the “starry-eyed” type who says that he can pay, but then after paying a semester he can no longer pay, then the student has a right to be concerned. </p>
<p>Not all parents can be trusted to actually pay even when they say that they will. Sadly, there are plenty of overly-optimistic dreamy-eyed parents who are flattered that their kid got into an elite school and may WANT to make it happen, but then the realities of paying smack them in the face. </p>
<p>I would ask the student to talk to his parents to find out HOW the costs will get paid. Is there a college fund? If not, then the cost would be paid out of current income to the tune of $5k per month…an amount that most families can not cough up out of current income. </p>
<p>If you feel that the finacial aid is inadequate, discuss this with the school and see if they can redo the process.</p>
<p>You are not likely to get a whole lot more from most ivys As to whether you go to an ivy or this school, be aware that this school is a bird in hand. Those ivies in the bushes are mighty hard to catch. You can let this go and not get accepted to any ivy or other highly selective school RD. </p>
<p>Thanks for the advice guys. I did run the npc before applying and they surpassed the price of tuition. My parents said that would not be a problem and said to apply for financial aid just in case they do end up giving us some aid. I just felt a little bothered that I’m making my parents pay 260k for my education. I have spoken with my dad and he said that he has me totally financially covered. I like this school and I will most likely be attending barring unforeseen circumstances.</p>
<p>Congrats! I should note that it’s usually the dad who comes on here asking if it’s really worth paying all that money that he said he’d pay. I commend you for taking the issue seriously, but if he’s got the money and is willing to spend it for your education, take it–but don’t forget to be grateful.</p>
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just felt a little bothered that I’m making my parents pay 260k for my education. I have spoken with my dad and he said that he has me totally financially covered. </p>
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<p>and on an income of $50k-60k per year! :)) </p>
<p>It’s probably a tax thing. “Taxable income” as a number is kind of like “EFC” – it has almost no relation to actual currency coming in or out, it’s pretty much only useful for calculating how much tax you owe. A lot of college applicants whose parents own businesses tend to report taxable income when asked about their parents’ income too, even though that number is almost always vastly understated.</p>
<p>Go to the ivy without guilt and do your best. Your parents planned for it–and as such, you would only be wasting their money if you flunk out or didn’t appreciate the opportunity enough to keep it golden. They are proud of you. Take care of them when they need it in years to come, and it sounds like you have a wonderful and supportive family. :)</p>