Honestly, how do you pay for a +$100,000 education?

Paying for College
1

<p>I was recently accepted to my dream school, and then to its competitive honors college. Everything is falling into place, except the financial aspects. It will cost approximately $40,000 a year to attend, totaling $160,000. </p>

<p>I received a merit scholarship for $40,000 and have saved $15,000 of my own money. My parents are willing to contribute, but how much has not yet been decided. </p>

<p>My parents make a little too much for need-based aid, and I have two younger siblings going to college very soon. This school is pretty stingy with scholarships, and I am not eligible to receive anything else until I enroll.</p>

<p>This means my family and I still need to come up with roughly $100,000! In all seriousness, how do people pay for educations like this? Especially those attending expensive Ivies, for example? I have no idea how anyone manages to afford schools like these. </p>

<p>Any input (especially from experience) would be greatly appreciated. </p>

<p>Thanks!</p>

2

<p>If you can’t afford it, you go to a more affordable school. It’s as simple as that. The majority of students don’t go to their “dream” school- they go to a reality school (or drown in debt for the next 20 years).</p>

3

<p>Hahah so I’ve been told, believe me. I have other options, but I’m really just wondering how on earth people afford nutsy tuitions.</p>

4

<p>Massive financial aid, parents who have been living well below their means and have been saving (school is not meant to be paid out of current paychecks), taking on some loans, or they’re independently wealthy.</p>

5

<p>Scholarships. I’ve literally spent over a hundred hours working on scholarship apps.</p>

6

<p>Savings and loans.</p>

7

<p>College is a consumer product. If you don’t qualify for aid at schools like ivies, you or your parents have chosen to prioritize consuming something other than education, or had other expenses that left you without the ability to save and borrow? Paying or college requires great sacrifice for most. I can’t tell you how many parents I’ve met who seriously didn’t understand that paying for college would be painful.</p>

8

<p>Honestly, we have saved. As soon as each child was born we looked at what it would cost for them to go to our alma mater. If you put the information into any kind of financial calculator is showed us what it would cost when they went. ( I’ve been amazed at how accurate it was… It cost 6,000 a year when we went and the calculators told us it would be around 45,000 when our oldest would be old enough to go and that will be about what it is!!!) As soon as they were a few months old we had things automatically taken out. At first we did UGTM, but once 529 plans came out we switched to those. It was a priority for us, so we have always had an amount taken directly out of the paycheck into an account since each of our three children were 3 months old or so… That has been more of a priority than cable tv ( don’t have), cell phones ( our oldest who is about to turn 17 just got one-the other 2 don’t have one and won’t until they are driving), etc. I know most parents don’t do that, but the financial aid people expect that parents have been saving like we have…</p>

9

<p>Congratulations on saving $15,000 on your own. That is terrific. If your parents make a little too much for need-based aid, their income theoretically is large enough to bear some of the cost (with savings and out-of-pocket contributions). I wish you luck in talking with your parents about the nitty-gritty of their expected contributions. Loans are an option, but obviously you’d want to tread carefully and not overextend yourself (others who know better may come in and comment on what’s available and what the limits are).</p>

10

<p>Honestly, I wouldn’t do loans. If your parents cannot contribute, then either go to CC for 2 years and transfer. By then you should have enough saved and maybe your parents will help as well for the remaining 2 years. Or find a decent school that is close that you can commute to. DO NOT GO INTO DEBT. That is my mantra.</p>

11

<p>The approach I’m taking is no or manageable loans for undergraduate education. I’d allow $25k in Staffords per child. Let them have some personal skin in the game. Plus that will help their credit ratings. I’ve looked at the College Board stats for a number of private colleges, and students seem overall to graduate with around $25k in indebtedness, which is about the amount you get from Staffords. </p>

<p>For graduate school, I can see going into debt since at that point you’re in vocational training for a specific career that could bring a return on your investment. That does depend on the school and career. 6 figure debt for Harvard law? Sign me up if the goal is a Wall Street firm that will start at more than $100,000 a year and I’m willing to work 80 hours a week. But 6 figures for a low-tier law school if I want to be a legal aid lawyer or do real estate closings means I’ll never own a home when my salary may max out at $100k. Over the long haul you would do better as a paralegal. </p>

<p>When it comes to a PhD program the math changes since there is much more of an opportunity to get aid–e.g., as a teaching or research assistant–than in professional schools.</p>

12

<h1>If you can’t afford it, you go to a more affordable school. It’s as simple as that. The majority of students don’t go to their “dream” school- they go to a reality school (or drown in debt for the next 20 years).</h1>

<p>Exactly…most students commute to a local CC or state school. Low cost that way.</p>

<p>For the rest…</p>

<p>1) some people are quite affluent…can pay from current income.</p>

<p>2) some started college accts when their kids were babies.</p>

<p>3) some have inherited money and are using that.</p>

<p>4) some qualify for a huge amount of financial aid (at the schools that award huge FA)</p>

<p>5) some parents borrow from home equity</p>

<p>6) some parents take out Plus Loans.</p>

<p>7) some kids get huge scholarships.</p>

<p>In other words…there’s no ONE answer.</p>

<p>If your parents can rather easily pay for their portion, then you need to consider more affordable options. Since there are younger siblings, then obviously they can’t borrow for you without having the same issue later.</p>

<p>(It’s like expensive cars…yes there are many out there…but most people aren’t buying them…most can’t afford them.)</p>

13

<p>Great educations should not only be for the wealthy. My son goes to Notre Dame and while it’s been a challenge to fund it–my husband and I committed to our children long ago that if they could get the grades and get accepted to whatever school they “dreamed of” then we would find a way to make it happen. We don’t take vacations, drive fancy cars or dine out because we believe in the value of his and our daughters educations (she is off to Ohio State in the fall to become a doctor). By the time both have graduated–his education will have been roughly $225K and her’s over $320K to get thru med school. Yes these prices are ridiculous and we are not wealthy people. Make too much to qualify for aide but not nearly enough to pay tuition with ease but I refuse to not allow them to become everything they can become. My son received several scholarships to help defray the cost and my daughter has applied to over 65 scholarships–mostly regional and state with only a couple national. We will see in the coming months if she is awarded anything. Regardless, where there is a will, there is a way. good luck to you!</p>

14

<p>Great educations should not only be for the wealthy</p>

<hr>

<p>Right…but a “great education” doesn’t have to be a pricey one, either.</p>

<p>The fact that you have incomes that don’t qualify for aid, means that you have high incomes. So, for people like that…when there’s a will, there’s a way (as long as the family hasn’t faced some serious issues…like serious illnesses, unemployment bouts, divorce, etc. or have more than 2 kids.)</p>

<p>But, the facts still are…most people with decent incomes can’t come up with $550k to put towards their kids’ education, not while also funding retirement and other emergency savings and paying normal day to day expenses… even if they’re “good with money.” </p>

<p>And…not sending your kids to a pricey school of their choice is not denying them the ability to become “everything they can”. Any particular school is not going to make or break your kids…unless they’re quite the fragile twosome.</p>

15

<p>I would like to add to mom2collegekids’ list:</p>

<ul>
<li>Some people work and pay for their own college, little by little. (Either they go to school part-time or they go full-time for a few years and, when they run out of money, work for a few years, save, and then use that money to fund the remaining schooling.)</li>
<li>Some people join the military and use those benefits (or have a parent who is able to pass on their benefits).</li>
<li>Some people take jobs that offer tuition benefits.</li>
</ul>

16

<p>Mom2collegekids…I was answering Ctate94’s request for responses “especially from people with experience paying high tuition rates”—as we are doing this right now. </p>

<p>But since you brought it up and just to put your mind at ease – my “twosome” is not fragile and I would be happy to put their resumes/characters up against any pair because I believe in their abilities. I am happy to do whatever it takes to financially support my kids.</p>

<p>As for the income needed to qualify for aid—you can make as little as $45K and not qualify for full aid or every scholarship, which still makes it difficult to pay high tuition bills (especially when you have two in college). And we certainly had our bouts with unemployment, so the road has not been an easy one—but I will repeat “where there’s a will, there is a way”. Incase you missed it—both of my kids work hard to get great grades and earn merit scholarships which help with large parts of tuition. Generally speaking-higher tuition schools have larger endowments that help offset the rates—which we were able to benefit from as well. In addition, all four of us work as many jobs as needed to make the rest happen. So yes, people with regular incomes can make it happen when all resources combine to do so. </p>

<p>As for a great education—while it is not true for ALL majors, it certainly is true for some majors—where you go to school MATTERS (in terms of getting a great education) and that can be pricey. A Brown Macke or University of Phoenix graduate will not stack up the same way with perspective employers as a graduate from schools like the University of Notre Dame, Penn University or UVA for example. Highly selective schools are called “selective” for a reason. They have already done the sifting through tens of thousands of highly qualified applicants to come up with their student class. Generally, the selective schools have more qualified professors, more rigorous course loads, better internship opportunities and this typically yields a BETTER education. Like it or not, employers hiring for high level positions know this and look for these type of applicants. This is why highly selective schools are able to charge ridiculously high tuitions. I don’t like the rates any more than anyone else, but it’s a means to an end. Based on the world we live in today and the job market—anyone would be crazy to sell themselves short of anything but the best education possible. Furthermore—if you have a child with a high aptitude, they should be where they will be challenged to become the best that they can become and not settle for less–merely because you are not wealthy. Suffice it to say even the most rigorous schedules at all schools are not equal.</p>

<p>Speaking from experience, I work at a corporation who employs over 30,000 people and I look at resumes regularly to select qualified applicants. If you do this for a living—you know the truth about how applicants are selected. I see fellow associates discarding resumes because of nothing more than the educational component. When looking at a stack of resumes—they look for ANYTHING to set someone apart to make the process a bit quicker. People can deny it all they want—this is how it works in real life. Just this week, my son received an internship at a strong company because they appreciated his Notre Dame education. When you are seeking high level employment opportunities, the network and notoriety these schools provide is invaluable. In this day in age when everyone is scrambling to get some sort of bachelors degree—students need SOMETHING to set them apart. While the networking of well-known schools may only get your foot in the door—sometimes that’s the ONLY way in. </p>

<p>As for my daughter— a medical degree from a great school like Harvard may have gotten her into a few more doors than an OSU degree, but in her case, OSU IS her dream school and she didn’t apply anywhere else. If Harvard would have been her choice though, we would have found a way to make it happen. Regardless, a medical degree is a perfect example of a major where the absolute BEST rated school may not be a necessity to promote success.</p>

<p>ENOUGH about great schools—either you believe in them or you don’t and nothing I say is actually intended to change your mind. Many people I have met find reasons not to believe in them merely because their kids don’t have the stats to be accepted into them. Regardless, hopefully every parent out there only wants the best for their kids and what’s best for one is not always best for another. </p>

<p>One last thing to Ctate94—if the school of your choice is an expensive one, and you feel it is worth attending—then my advice would be to work hard to earn the best grades you can, apply for all of the scholarships available and find part time jobs to make it happen. At the end of the day, you want that degree to be a valuable tool to help set you apart from the other applicants vying for the same position. Good luck to you!!</p>

17

<p>When parents post thoughts like the above, I worry about the state of their retirement accounts. You can find other alternatives for college, but you can’t borrow money to live on when you retire.</p>

<p>I am also curious about med school,bradison, from your other posts it looks like your D is still in high school, does Ohio have a BA/MD program?</p>

18

<p>Yes, but people that make $45k aren’t going to to a school without aid. You also don’t need to go to a private, expensive school in order to get a great education. Sorry, but you don’t. It’s a lie unless you’re going in to SOME highly selective fields. The rest of us can do just fine wherever is affordable.</p>

<p>Also, how did they get “great merit scholarships” and yet you’re still paying some $550k for school. Med school, ok I understand. Are BOTH of your children in med school?</p>

19

<p>EMK4 quote: from your other posts it looks like your d is still in high school…</p>

<p>Oh…she’s still in high school? Bradison said that she’s “off to Ohio State in the fall to become a doctor.” Is she in a BS/MD program?</p>

<p>========</p>

<p>Bradison quote: As for the income needed to qualify for aid—you can make as little as $45K and not qualify for full aid or every scholarship, which still makes it difficult to pay high tuition bills (especially when you have two in college).</p>

<p>=========</p>

<p>you said that you have two kids going to college and one is at ND, and you qualify for no aid. That hardly suggests an income of anything close to $45k. </p>

<p>To have 2 in college and not qualify for any aid at ND means a high income/assets. I know what kind of income/assets nets an EFC that is high enough for no aid with 2 kids in college when at least one is at a full-need school.</p>

20

<p>bradison, you set up a false dichotomy there - classic logical fallacy. There is a huge gulf between University of Phoenix and Penn, and the choices are not limited to “either a for-profit with a poor reputation or a ridiculously expensive elite school.”</p>

<p>There are literally hundreds of colleges and universities that fall in the middle of that spectrum, the vast majority of which are much closer to the Penn side of things than you apparently want to admit.</p>

<p>The answer to the OP’s question is that you’ve got to be rich to pay for a $100,000 education out of pocket. The good news is that you don’t have to spend anywhere near that to get a good college education. Hell, my undergraduate and master’s programs combined will cost maybe $60,000.</p>