I’m wondering if anyone else is having serious regret about allowing their child to do an ED application. Ormaybe this can be a “word to the wise” about the dangers of getting caught up in the hype about going to a top school and how ED really ups your chances.
I’m to the point where I’m starting to hope she doesn’t get in (And I think there’s a 50/50 chance she’ll get in, despite the school’s low acceptance rate.) We were hesitant to sign for ED, because even with stretching ourselves financially, D will have to borrow $8-10K/year and work a lot during summers. And it’s a CSS school, so when S starts college in two years, we’re screwed (the “you only have to pay 60% of your EFC when you have a second child in school” kills me.)
Since D filed her application, her safety school accepted her and awarded her their highest level of merit award. She also got a very unexpected 35 on her second ACT sitting (with 36s in Science and Reading) and that will get her a full - or close enough - tuition scholarship at State U. Both of those put her COA low enough that we can put a little away towards grad school for her each year. Coming out with $5000 in the bank vs $40,000 in debt is a huge difference! And we’ve found a new 2nd choice school (somewhere between a match and a slight reach, but we’re fairly confident she’d get in) with an NPC that would allow her to graduate debt free. In hindsight, all three of those sound like a smarter choices.
I figure at this point it’s too late to change anything, and we believe in honoring commitments, so we won’t weasel out of the ED agreement (assuming they match their NPC award amount). Just thanks for letting me stress about this somewhere other than just my head and maybe someone else will follow their instinct when it’s telling them ED is a bad idea.
That’s a good question! I think I need to have a serious talk with my husband and D about this and then follow up if they agree it’s the right thing to do. We allowed the ED because it is - by far - D’s first choice. Her alumni interviewer told her he thought she was a perfect fit for the school, which only reinforced D’s belief that this is the best school for her. Honestly, I think she’d be very happy there. And then potentially curse that decision after she graduates and sees how long she’s going to be paying for it. It’s purely the financial aspects that are making me question this decision.
I am not an expert on ED (my D did not go that route) but it seems that if you are before the time when they tell you that you are accepted… you SHOULD be able to switch from ED to RD. I would call the school - the worst thing they can say is “no”.
In the perfect world, ED is a bad idea if you and your child are not 100% sure that they want to attend their ED school. And that includes being 100% sure that you are willing to pay for it.
But as much as any of us might say, “yes we’re 100% sure”, when you actually have a merit award in hand to another school–you might waver somewhat.
D applied to NYU ED for studio art and we knew if she got accepted that we would not get any financial aid and that she would not be considered for merit talent $. She also applied to Pratt EA, which is an excellent art school. We did the happy dance when she was accepted at NYU–but I wasn’t dancing quite as much when she was accepted to Pratt with a $14K a year scholarship two days later. It’s hard to look at saving $44K and not react at all.
But we had committed to NYU and my D remained 100% sure. So I tried hard to not think about the money we would have saved and joined her enthusiasm at attending NYU.
Four years later she has graduated with her BFA and is actually still attending NYU as a grad student. (This time she got a scholarship.)
And in the end–I am 1000% sure that NYU was the right school for her. While we can never actually see the road not taken, I truly believe NYU was a perfect fit and that she would not had succeeded as much or been as happy as she was at any other school. Sometimes are first instincts are right!
You should be able to switch to RD…contact the schoo TODAY. They will likely be on break for the holiday beginning tomorrow.
To others reading the thread…ED is for when it’s the TOP choice bar none…AND the cost to attend will be affordable (do the net price calculator for an estimate of your net cost).
And to @SuburbMom just an FYI…for freshman year, your daughter will only be able to borrow $5500. Very often that Direct Loan amount is already included IN the financial.aid package your kid gets. Any money beyond the Direct Loan amount…YOU (the parent) would need to cosign, or take out yourself. Are you willing to assume that debt?
As I’m sure you know, financial reasons are the one and only way to get out of ED, after an acceptance.
Are you so sure you will not get need based aid from the school at a level that it could be managed? And I don’t understand your dismissal of the increased aid schools give when a sibling starts college.
Of course I don’t know your situation, but it does seem like it would be a pity if your daughter cannot take advantage of this opportunity if she gets in.
@pickpocket it sounds like this family will be stretching financially to make this ED school a reality. There are likely plenty of other colleges where this student can take advantage of many opportunities!
Here is the ED rub. The student could get an acceptance…and that ONE financial aid package. The net cost could be the best…or it could be the worst…no way to compare with other offers. The decision to accept or declin will be made with this one offer in hand.
Certainly, the family can back out of the finances don’t work. If they want to, they can wait and see.
But if this were my kid, I would have ALL other applications submitted…now. It is far easier to get this task done now than to have to do it because if an ED rejection…or because the ED financial aid offer was not adequate.
If the student gets accepted with a financial,aid,package that works, and decides to accept the ED offer…the student would withdraw all other pending applications, and decline any already received acceptances.
OP- I would take the finances of grad school off the table for now. There are many paths to financing grad school- full funding for a PhD (and if she doesn’t get funded, that is a sign from the universe that she should NOT go to grad school); working for an employer who will pay to send her to grad school with a commitment to return; working for a few years until she saves money, etc.
And the vast majority of kids who think they know their future career plans change MULTIPLE times.
So look out at the next four years. If the plan is unrealistic based on your current finances and how much you can realistically borrow- call the school and switch to RD. If the plan is realistic but tight- ask your D to come to terms with a frugal life after graduating-- living with roommates, the occasional zipcar rental but not owning a vehicle, entertaining by making a pot of chili with friends vs. going out to restaurants and taking impromptu ski or beach vacations. She needs to understand that the lifestyle she sees on TV of young professionals is not going to be her.
If she gets it- and you guys can swing it- then sometimes it’s worth swinging for the fences. I’ve got a slew of nieces and nephews who went into debt for their undergraduate degrees and the way they managed their lives in their 20’s is truly impressive. Unlike what you read in the newspaper- the majority of kids who borrow for college pay it back. Unlike what you read in the newspaper, the majority of kids who borrow for college get jobs, get raises and bonuses by working hard, manage to pay off the debt and go on to live their lives.
Know your kid. And she needs to understand what she’s committing to. No fancy shoes once she’s working. No weekly manicures and tanning salons. If she grew up understanding the value of a buck I would trust her. If she grew up wanting what you guys just could not afford, I’d have a serious re-think of her debt plan.
To try to answer some questions - we’ve done the NPC at every school D is looking at and we know what the ED school’s package would look like (which doesn’t include loans). She would take out the $5500 in her name, and we would make her sign a contract to pay back the other ~$4500 in loans we would have to take for her to attend, and will try to get that debt transferred to her name after she graduates. (There are ways this can be done.)
Thanks for the reassurance @uskoolfish. I’ve gone on all the college visits with her, and have no doubt she would be happy there. She loved every minute we were on that campus and didn’t want to leave. She ate lunch with students, sat in on a class, met with the director of the program she wants to major in, the whole deal. That’s why we allowed ED. My doubts have really only become big with the realization that she’s going to get merit aid other places. Until the second ACT test, she didn’t have the test scores to make her a very top candidate.
@pickpocket : As to the discount when the sibling attends - If our EFC is $30K and S goes to a CSS school as well, our total EFC for the two overlapping years becomes $36K ($30K x 60% + $30K x 60%). If we already can’t afford $30K, there’s no way we can afford $36K - it means more loans. That’s why I say that the 60% thing kills me.
I agree with your points @thumper1 I guess I’m a ‘glass-half-full’ optimist and hope the ED school comes back with an acceptance and workable FA offer. I note that many Ivies and equivalents are claiming to make no-loans-required offers these days, but maybe that’s not applicable to the OP’s college.
I agree it is unfortunate that one has to do a bit of gambling these days: taking the admissions advantage of ED versus comparing multiple FA offers.
We have no way of knowing if your NPC is even accurate or affected by any unusual circumstances. But the point, when considering ED, is to be as coldly rational as possible. The tip for Early isn’t as large at many schools as some think and an interviewer won’t be reviewing the app.
But yes, you can get out of it, if the finances don’t work. It’s just that when kids “dream” hard, they can be disappointed. Try to be rational now. Have the conversation.
I don’t know your overall financial situation. Based on what you’ve posted, if you are a dual career couple with good benefits, have fully paid into your retirement plans every year, have a cash cushion, are healthy, and have a whole life insurance policy with a built up value (that you can borrow against in an emergency), and own a chunk of equity in your house- that suggests that your plan is workable. If you don’t- so you’re talking about being a few months away from trouble if one of you loses your job, or your company transfers your department to Costa Rica… then the debt sounds a little risky.
How will your D feel about being in debt to attend this school if she changes her major? (most kids do). How will YOU feel about the debt if something in your financial situation changes and it goes from “we borrowed for our kids college education” to “we are in deep trouble with our finances”?
Everyone has a different tolerance for risk. Two mid-career professionals with another 15 years of work life ahead of them is different than a one-earner family with a breadwinner who is 62 and has emphysema.
I agree. See if moving the application to RD is a possibility – you can call the HS guidance counselor and/or the college admission office. If you can move the application to RD, talk to your H and child and come to a decision and take action (if you go that route) quickly.
Anyone know how the ED financial out gets enforced?
Assume that the OP’s case is one where they “could” pay the freight at the ED school if the FA package comes in where the calculator predicts, but it would be somewhat painful. And, now with some other offers in hand, the ED school option looks less attractive than anticipated.
Can you freely just pick another school if it is cheaper? Are you supposed to stick with the ED school so long as they come up with the expected FA package?
Is there any way for the ED school to do anything if you just say “can’t do it – finances.” I’d assume there’s nothing much the ED school can do?
It’s easy to contact the AO and ask to have the application switched to RD. It happens all the time. In your shoes, given that she will face a lot of debt, I really think she should apply RD. There is no penalty for doing so.
My D turned down large merit offers for a school that offers no merit aid. Colleges dangle that carrot and it really does make the decision much tougher for all involved. My D, my husband, and I had particular reasons why the merit schools ultimately didn’t seem the best choice for her. She is only a freshman so it’s too early to say if we will regret allowing her to turn those schools down, but we do feel we gave all options their due diligence. I think if there aren’t really sound reasons why full-pay school is the best choice, assuming she gets in, then you might want to have a serious family discussion.