Life has a way of throwing curve balls. The kids I know who were convinced they were going to qualify for some sort of public service loan repayment program- ended up taking a left turn. These programs need to be investigated carefully before this becomes your college financing strategy. There have been well researched articles (I think the most recent one was the Wall Street Journal) about how hard it has been in some professions to actually qualify- even if you DO qualify according to the large print.
The one program where I think there is zero ambiguity is the military- Service Academies are free, they spell out their obligations pretty clearly. ROTC- also clear.
Be careful if this is the linchpin of the plan. And there are no guarantees that in five years the programs will still be in existence.
Parent plus loans do qualify for PSLF (at least as of today), but for those 10 years her lifestyle will be hampered by the loans if we are talking about more than the $27K. Loans will possibly prevent her from buying a home, going to grad school, moving to take a preferred job, even who may choose to date/marry her.
Donât underestimate the albatross that debt is, whether you think itâs going to be forgiven after 10 years or not.
I agree with the posters who suggest she chooses an affordable school, one that does not require more than the $27K in loans.
I hope you have mapped this expectation out for your daughter long ago and didnât suddenly drop this in her lap as a senior. It doesnât sound like youâve done much research, so Iâm wondering if you have any idea how to select merit schools? Do you intend to help her sort through this or is she basically on her own? Please get your high school counselor involved. Have to say this seems more punitive than helpful for your child.
My dad and his brothers went to boarding school and then Princeton, Iâm not sure who paid for his MBA. It wasnât a financial hardship to pay for my college since it was just my sister and I (and I chose public). Fortunately they were also able to fully fund their retirement.
There are schools that qualify for auto merit, as thumper1 has already noted. Thatâs a good place to start, as it would cost her very little.
Also, if she is going into a non-STEM field, then take a look at McGill. Their tuition is quite low compared to US standards for non-STEM majors (yes, their tuition varies by major) and if her stats are good she can likely qualify for some merit aid as well. Plus, they are very generous with awarding college credit for AP scores, so she could possibly graduate in either 3 or 3.5 years, further saving money. And, she can move off campus after her first year, and apartment rents are quite inexpensive compared to most US cities. Be aware that all posted prices are in Canadian dollars, so you will need to convert them to US dollars to get the true picture.
My son applied to McGill last year and tuition and fees and room and board came in at about 35k US $ for his first year, and significantly less for his final two, based on being able to live off campus. Students tend to love McGill, and really love being in college in Montreal. It has an excellent academic reputation. Other schools in Canada may also be worth a look at.
Also, depending on where you live, your state may have some public schools at a lower price point.
Please donât stop here. Youâve given us a good start with things and youâre not alone! If you feel anyone is dissing your choices, skip over their replies. You honestly arenât a bad parent if tossing a quarter of a million dollars into higher ed is something youâd prefer to avoid. MANY of us either canât or donât want to do this and our kids turn out fine.
What you want to avoid is her having a quarter of a million dollars in loans and it can be done.
This is a start⊠what field and whatâs your home state (because some states are better than others at providing good options). The vast majority of us wouldnât tell you to pay for a high priced college for a low paying job, with or without PSLF. Does she have SAT or ACT scores?
There are good college options out there. Those of us on here come from pretty much every state and every background. Let us make suggestions for you to start looking for something affordable.
I agree with OP and both of my children (twins entering college at the same time) will be paying most of their own college costs. I told them long ago how much I was able to afford, that they are allowed to live at home for free as long as they are in school and that they will NOT be taking out student loans. As a result, they have both chosen local state universities with reasonable tuition and will be living at home (their decision). The minute I sat down with a calculator and showed them what living on campus would cost versus living at home, they both declared they will gladly live at home.
Both have held jobs the last year and both are on target to have at least their first 2 years of tuition and books costs saved but the time they graduate high school. They work about 15 hours a week, mostly on weekends.
I know my opinion is not popular, but I believe a college education is a privilege and not a right. And they will be adults. Not children. It is not the parentsâ responsibility to pay for college. If they want to go to college, they will need to work for it.
We let our kids know around 10th grade that we could afford to pay for our state schools. If they wanted to apply to privates, they should look for privates that offer merit and apply for outside scholarships. If they were accepted into the private without aid, we didnât have the funds to pay for it and that was a hard line. This is an important conversation to have early. One of my kids gambled, applied for a ton of scholarships and was accepted to multiple top 10 schools with minimal aid. She accrued quite a bit in outside scholarships but not enough to cover the differential between the cost of a state school and a private school. She admitted that she took the gamble and while it paid off with acceptances, it didnât work out financially.
We paid for tuition, books/lab fees, housing/rent, utilities flights home and gave a small monthly stipend for groceries. Their âskin in the gameâ was that any social activities (clubs, Greek fees, sports), eating out, trips with friends, car, gas, personal care items, etc. were their responsibility. Most of their money came from summer jobs but they figured out ways to earn an income while in school as well (tutoring, lifeguarding, etc.)
@Knawee you put this financial limit out there for your twins very early in the game, it sounds like. AND they also chose a modestly priced college within commuting distance which was suggested to this poster as well.
I live in Rhode Island. She is going to school for Psychology and Clinical Mental Health Counseling. Weâve been looking at schools with accelerated programs.
Thanks for being kind and not judging the situation without knowing the facts. Iâm just looking for advice.
Avoid the cosigned loans - she should not saddle herself with that level of debt - that would be an unwise financial choice. (It sounds like one of your goals may be to train her to be financially wise and big loans are the opposite of that.) Plus, cosigned loans accumulate interest during college. Just a guess, but consider that cosigned loans, aka parent loans, might not be eligible for a loan forgiveness program.
Help her search for big merit. With a 4.0 and hopefully a good test score, itâs possible. Full tuition may be easier to find than a full ride covering room and board, so, if she finds a full tuition merit scholarship, also consider how she might pay living expenses ($15k+), assuming the university is too far to live at home. Federal student loans plus summer work and possibly working during the school year might not completely cover it. If you could provide even a few thousand dollars per year (say, 5k), that might mean the difference between her being able to start at a four-year university on a full tuition scholarship vs live at home and start at community college.
If you want help finding colleges where big merit might be available, you have come to the right forum. She should plan to take SAT or ACT. If you can help her a little, think about exactly how much per year the budget from you would be.
Definitely would be interested in learning about good institutions that she would have success with merit aid based on her 4.0 GPA and test scores. She has received some offers for a free ride but from schools she isnât interested in. Thatâs a discussion weâve had of course. As well as the responsibility of payment for school. Willing to help but canât do $120000 that my EFC suggests.
If she already has full ride options sheâs ahead of the game. With a psych degree she really needs to minimize loans even if that means not going to the ideal school.
Do you know what she wants out of a college? Size? location? Sports? Greek life? General vibe?
Has she looked into Miami of OH? Great school that gives a lot of merit.
Iâd also encourage her to do a deep dive into honor colleges at the big state schools. They can make a huge difference in experience.
A high stats kid should have plenty of options s if they are open minded and flexible.
Ok, so you canât afford the EFC - lots of families are in this position! This is a common topic here. What annual budget amount would be affordable and reasonable for you to give her? The bigger that number is, the more choices. Would help for people suggesting specific schools for merit.
Great that she has some full ride options (look at the details - do these include room and board?), she should keep those in the back pocket if possible. They may turn out to make sense later, after she gets through the journey of the college admission process. What types of schools is she looking for? Size, location?
Just noticed psych. She may need grad school (masters) if the long term goal is counseling.
Up until Covid I worked at a public high school and have seen oodles of different situations. My preference is to take what I see in front of me and offer the best advice going forward. Where I live, few are willing to shell out high dollars for college and most canât afford it. On this forum I truly believe most want the best for their kids (otherwise, why look on the internet at all?).
What would she like in a school? Size? Location? Urban/suburban/rural?
We need more Mental Health counselors, so Iâd definitely like to see her get into a place thatâs right for her. Kids who are drawn to that field (IME) are in it for the right reasons - they just need to get the education (often more than a Bachelorâs).
That is great, but for us, the nearest public university is over two hours away. We have one small non-Selective university in town, but tuition alone is $37,000.
The internet can be a crazy place. You definitely have a valid question. Itâs not you. Itâs merely how some read the original post. With the more details added, I expect many can offer solid advice because youâre in a fairly common situation. Then you can sift through that to see what works (or doesnât) for your situation.
Do not spend your retirement or go into any sort of debt on a high priced college simply because of your EFC and feeling you must. Those are the things âbadâ news stories come from.
