LOL I’ve been trying to convince my kid to go to UMass Amherst (in state) over BC/other private colleges because $55k/year difference in cost, 4 years, at 8.5% nominal return, 3.5% inflation (5% real return), means he’d have $1.31mm 35 years after graduating. Which should be enough for $52,300/year at 4% withdrawal rate.
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In your calculations, how much more do you assume BC grads make than UMass grads?
Pay scale has umass at $74k and BC at $79k
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It is hard to distinguish, especially if we are talking about a talented student who got accepted to both schools. It will also depend on majors and types of employers (size and industry).
I have a student at each school, both majoring in finance. The one at Isenberg secured a summer internship for a large bank in NYC. If the younger one at Carroll goes to a similar firm, the starting salary will be exactly the same even though it costs more than double. Compensations at these firms are standardized (starting salary of $100K - $110K after recent increases). It does not matter which school you are from.
Investment banking summer internship? Treasury? Private client services?
I thought bulge bracket banks recruited at Carroll more than UMass but it’s certainly possible that a top UMass student could secure the same job as a Carroll grad.
Yes, she got an investment banking summer internship.
For investment banking or asset management jobs, it is very important to join professional clubs like BCIC and Heights Capital at BC or MEF, MFIF, and MAFE at UMass. Each club has very competitive selection process but you get a great network of alums and current students who got wall street jobs or internships at GS, JPM, Citi, RBS, MS, CS, DB, etc.
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Awesome, congrats! Tell her it’s a grind but worth sticking it out. I know some whose summer internships turned them off to IB and they don’t return. However, the long term payoff is great – financially and in terms of other job options.
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I’m no economist, but I did just finish reading “The Price You Pay for College” which describes studies that showed that for only a small demographic (none of which my kid is in) does the place you went to college result in higher earnings. Freakonomics authors said same.
But perhaps your child IS in that demographic, or the price doesn’t matter to you, and/or your child receives a huge aid package.
I’m not sure what the book says but I’d figure that if my family makes $100k and doesn’t have substantial assets that BC would come through with solid financial aid.
A comparison might be Wake Forest vs NC State. How much more would someone pay to attend Wake? Engineering and CS might make sense to go with NC State but doubt liberal arts and business or just overall quality in terms of class sizes, etc.
At schools that meet need or attempt to for lower income levels it looks different than state schools that typically do not have the financial endowments to meet 100% of need. But the state schools start out cheaper so for the higher incomes they are more of a bargain.
BC is less than UMass for those families making less than $110,000 per year, but over that it jumps.
Wake Forest from your example is less money than NC State until you hit about $75,000 in annual income.
Average annual costs
Boston College
Cost by household income
| Household income | Average cost after aid |
|---|---|
| Less than $30,000 | $6,353 |
| $30,001–48,000 | $8,951 |
| $48,001–75,000 | $17,113 |
| $75,001–110,000 | $22,285 |
| More than $110,001 | $49,115 |
Wake Forest
Cost by household income
| Household income | Average cost after aid |
|---|---|
| Less than $30,000 | $5,250 |
| $30,001–48,000 | $5,981 |
| $48,001–75,000 | $12,004 |
| $75,001–110,000 | $23,550 |
| More than $110,001 | $50,359 |
UMass
In-state cost by household income
| Household income | Average cost after aid |
|---|---|
| Less than $30,000 | $13,137 |
| $30,001–48,000 | $14,474 |
| $48,001–75,000 | $18,104 |
| $75,001–110,000 | $24,051 |
| More than $110,001 | $28,777 |
NC State
In-state cost by household income
| Household income | Average cost after aid |
|---|---|
| Less than $30,000 | $7,285 |
| $30,001–48,000 | $9,887 |
| $48,001–75,000 | $15,084 |
| $75,001–110,000 | $19,541 |
| More than $110,001 | $22,677 |
Source: US Dept of Education (IPEDS)
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529 opened on maternity leave. $500 put into it every month and invested in low cost stock index funds… 60% of it is from stock market gains…it adds up if you start it early enough.
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Let’s stay on topic with this thread. The discussion about driving old cars has been moved to its own thread.
A post was merged into an existing topic: What’s the longest you’ve driven a car?
Not specific to BC. We did not qualify for FA. We have one child and started a 529 the first year she was born and contributed monthly. It does add up. Husband works for a university and we were eligible for a “tuition exchange” program that basically gives $40K per year at certain schools. It is highly competitive and was not easy to get at D’s #1 choice school but somehow it happened. D could have gone to the university where my husband works tuition free but she declined this. If it weren’t for the tuition exchange program she would have most likely gone to UMass Amherst which is in state for us and a great school. There is no way I would have paid full sticker price for a school like BC or any other similarly priced school. But that is just me. Each family has to decide.
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Going to college is not just about starting salaries for graduates. The decision also involves the location, campus culture, quality or facilities, social life, experiences and peer influences that will shape your perspective. UMass and BC are very different in almost all of those categories. If a family can’t afford Boston College (through family resources or need based financial aid) the student should not apply, but the choice of college is more than a simple cost of attendance vs. first year salary comparison.
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