My DS is weighing two offers: a full ride to Texas Tech or going into approximately $50k in debt to attend a top 15 national university. He expects to major in math, but also wants a liberal arts education and potentially could change his field of study. He has been admitted to the Tech honors program.
He undoubtedly will go to graduate school for a master’s and/or a doctorate. I will have about $80k for his education.
Thank you for any thoughts.
50k is a lot of debt. Unless he gets a very good paying job, it will follow him for a long time. And he can’t borrow 50k, max is 27k so the remaining 23k will have to be cosigned by you. Pretty sure I wouldn’t do that but I don’t know your situation.
What is the other school? TT vs top 15 with nothing in between? I assume you are not instate for Texas then?
Texas Tech is an excellent university, and there are few places in the USA that is $50K of debt better than Texas Tech. If your DS wants to do a graduate degree it’s even a bigger issue, since he will be living off of grad student stipends for another 6-8 years after he finishes his undergraduate degree. On the other hand, it can be difficult to get into a good graduate school after going to a relatively low ranked undergraduate program, unless somebody is really accomplished.
The thing is that mathematics at college level is an entirely different beast than high school math. At grad school level it is something entirely different. Math majors are more likely to change majors than any other STEM major (or any other non-STEM major as well).
Too risky to borrow that much, especially when going to grad school after. That $50k of debt will GROW during all that time, plus he may have to borrow for grad school. While many PhDs are funded, masters often are not.
And, now, many PhD programs are beginning to not be so well-funded. Tuition may be included, but often the stipend offered is not enough. When my older son was applying for PhD programs in math, the offers ranged from as low as tuition plus $13k stipend, to tuition plus $28k stipend. If he had had to take the $13k stipend option, he would have had to borrow because grad apt rents were $900+ per month, plus all utilities/WiFi…and of course there are food, transportation, clothing, cell phone, and other expenses.
Don’t know. What’s the other school? Does the other school offer more in case he changes major? Top 15 is pretty nice when looking for jobs. Any idea of salary outcomes between schools for this particular major?
Interesting note on relative stipends, @mom2collegekids. Stipends vary considerably, across subjects and universities. The current math PhD student that I know well enough to know something about his offers found that even high end programs had smaller stipends than some other STEM subjects - and the low end ones wanted brutal teaching commitments in exchange for so-so stipends.
Based on OP’s past posts, the other school might be Rice University.
Vanderbilt
I had a similar decision 29 years ago. Similar schools. My debt ended up being $27K in 2018 dollars. So not quite as much. I took on the debt and went to the more expensive school. Looking back I can’t say for sure which was the right decision.
In a nutshell, it means that he’ll have to pay $733 a month (i’m looking at 6% interest rate) for I believe 10 years. That will really limit grad schools choices. That said, I completely get why Vanderbilt would be an alluring choice.
There’s also the opportunity cost of the debt.
What does he mean (or think he means) by “liberal arts education”?
The vast majority of comprehensive colleges/unis in the US offer a “liberal arts education” in that they allow you to (and often require you to) take classes in all sorts of broad areas.
Does he mean smaller seminar classes? Look in to what TTech and TTech honors offers in detail. Meanwhile, Vandy is also a research university with plenty of large lecture classes.
What does he like/dislike? Look for? Doesn’t care about? How much of a financial strain will Vandy be to the family?
I’d be hard pressed to go into $50k debt under the conditions you outlined (any conditions really). Especially if there is a chance for a change in major. Instead, I’d focus on TT honors with an eye on grad school.
College debt = Bad. $50k college debt= Big Bad
Right, if he’s not sure of much, a full ride offers a lot more flexibility, and you could save whatever education dollars you budgeted for grad school once he has worked out what he is interested in pursuing.
At this point, it’s only an assumption that he’ll go to a grad or professional school. We do know for sure that he has a top school acceptance and you can pay for most of it. Let him decide. He may prefer going to Lubbock to a large state school for free and have an easy time. He may take the tougher but more prestigious route to Nashville. There is no right or wrong answer here. It’s a personal choice.
^ I say yes, let him decide, but I’d set aside the same pot of educational money regardless of what he chooses, so if he doesn’t spend it on undergrad, he can spend it on grad school or just let it grow in investments.
People make choices that saddle themselves with debt all the time - education, cars, homes, vacations, etc. It’s up to the consumer to decide if the extra cost is justifiable. There’s no single way to look at this dilemma, and the answer doesn’t need to be the same for everyone. It’s entirely possible that years down the road this $50k will look like a worthwhile investment, if not a bargain, in your student’s future. While it’s a difficult decision, I’m sure you’re up for making the most informed decision you can together. Good luck!
According to one ranking for Math majors: Vanderbilt #16; Texas Tech #160. For an extra 50k I would have the student take out 25K and the parents contribute the other 25K, I think Vanderbilt is definitely worth it. All of the students will be your academic peers and Nashville is an incredible city. You have worked hard to be able to attend a Top 20 university, take advantage of it. In your long career, 25K is really a drop in the bucket and probably will not be a hardship for your family. You can also work part-time to make up the difference. Just my 2 cents…
I would have to think that 50K total for Vanderbilt would be hard to walk away from but I don't know if that is the actual math. Is that 50K due to great financial aid? Is that including direct loans? How does the award break down? And really, no other schools are in the running?
How is he managing to take on that amount of debt? On his own, he can only borrow the standard federal student loans. Unless you are going to co-sign it, he won’t be able to borrow $50k.