Hi all, I am currently a senior in high school and will be a freshman in college in fall of 2018. Now here is my issue, I live in Detroit and will have a full ride to UM-Dearborn in the fall, but I also have a chance of getting into UM-Ann Arbor, but will not receive any financial aid (family reasons) but my parents also can’t pay for school and do not want me to be in debt. I could do private scholarships but that would probably still leave me in debt even if I do not reside on campus.
I am going into Engineering hopefully, computer or electrical, what would you advise? Full ride at Dearborn, the less pristine school, or debt at Ann Arbor, the more pristine school.
Ann Arbor is my dream but debt is also a devil so…
That much debt will be a heavy burden and will dictate all kinds of choices going forward. If it were me, I would avoid the debt and start with the idea that I might try to transfer for the last two years if it made more financial sense then.
Prestige isn’t everything. I would not enter (nor did I) into debt for my undergrad degree. If you must go into debt it should be for the grad degree. It is worth it, I have 2 graduate degrees…1 paid for with some loans. You will be in a better position to repay the loan after graduate school, as your income should be higher with a job that requires a graduate degree.
I think OP means prestigious rather than pristine. OP, are there any other choices for you in between Dearborn and Ann Arbor? Does Oakland offer engineering?
I wouldn’t go over $50k into debt. If you do engineering you probably won’t be paying for your graduate degree and you might have the opportunity to continue on at Michigan.
Yeah, they do but Dearborn is the most convenient and has offered the most money. The only thing in between would be Lawrence Tech but only if I get offered a good chunk of the tuition. There is also Wayne State, but I haven’t applied there yet.
Hypothetically, if the rates were dramatic enough with or without a co-sign, my parents would probably co-sign. So not completely moot because they have always implied to me that they would co-sign.
You shouldn’t count on private scholarships – they’re tough to get and often only cover the first year.
I don’t think taking on a lot of debt makes sense. You have plenty of time to decide, and you might be surprised at the aid you could potentially get from Ann Arbor. Have you run the Net Price Calculator?
According to their website, for Michigan residents whose parents earn between $95K and $125K, 89% qualified for aid; the average cost of tuition after scholarships and grants is $7,385.
Yeah, I think I filled that out wrong or something because it basically told me I would get no money even though my family makes that in that exact range.
I am definitely considering this. However, I have to check if some of my local dual enrollment credits that transfer to Dearborn would transfer to Ann Arbor. I am not so sure how this would work.
Ann Arbor costs about $26K a year (tuition, fees, R&B) plus another $3-4K in expenses that you could make working during the school year and summer. So that’s at least $100K to be paid, borrowed, or covered by scholarship.
If your parents don’t have a large amount of non-retirement assets or a business, they are probably expected to contribute $10-15K a year, with you borrowing $5500 and also making that $3-4K. It does seem possible that Ann Arbor might offer $5-10K a year in grants to make up the difference.
If Ann Arbor offered, say $10K a year and your parents could contribute $5K, that leaves about $10K a year for you to borrow. Maybe that’s possible (if not necessarily a good idea). Without a substantial amount from Ann Arbor and at least some from your parents, it does seem Ann Arbor is not possible, other than as a transfer, which is worth considering.