How Do People Do it?!

Paying for College
1

<p>I was just admitted to The College of NJ, Bucknell University, Boston College, and George Washington University. I just received my second financial aid package back from Bucknell. My EFC was 8,000 dollars between my brother and myself as my parents do not make a significant amount of money, yet Bucknell is asking for $11,000 a year. My brother is currently a freshman in college. I realize that $11,000 seems like a small amount compared to people who shoulder even more of the cost, but I just want to ask this: HOW DO PEOPLE AFFORD COLLEGE? I know some kids parents who live a middle class lifestyle and are willing to pay upwards of 20,000-30,000 a year for their kids to go to school per year. It's baffling and it makes me wonder.</p>

<p>Also, has anyone asked their parents to pay more than they wanted to and felt extremely guilty about it? My parents said they are willing if I have my heart set on a school but man, I don't know how I feel about that. I have the option of going to TCNJ for virtually nothing but I feel like I want to go out of state and get the entire college experience. So many decisions to make....</p>

2

<p>Why can’t you get the entire college experience at TCNJ? Do you think going to Pennsylvania from New Jersey represents some exotic journey? It’s one state over.</p>

<p>If you get a degree at the end of four years, that is pretty much the entire experience.</p>

<p>Some of your middle class friends may be borrowing money or they have savings for college or someone else is paying for them. It is not your business. Your business is getting your butt through with little debt and without making your parents stretch their budget beyond what they can comfortably afford.</p>

3

<p>Most people do not go away to college, much less go to expensive private schools such as Bucknell. They commute to local state universities or community colleges.</p>

<p>You are very lucky to have the option of paying “virtually nothing” to attend TCNJ.</p>

<p>If you really want the residential experience, think about staying at home and studying at a community college for two years, and apply the money you save to the costs of an out-of-state school for your junior and senior years. That’s what I did.</p>

4

<p>Would you be attending TCNJ as a commuter from home? If not, it will be the “college experience” living in a dorm.</p>

5

<p>emblanco is asking a fair question; it’s one I’ve been asking lately as we start the college search process. And it’s not just an issue of going to a cheaper school. We are not wealthy, by any means, yet our family’s EFC is likely going to be in the $30,000 range. Even State school for our daughter would be $20,000. We don’t have that kind of disposable income lying around. I see all these families walking around these college campuses - both public and private - and think, they can’t ALL either be so significantly richer than us that paying $30,000/year is no big deal, or make significantly less than us that they get huge amounts of merit aid. How DO families manage to afford college???</p>

6

<p>* HOW DO PEOPLE AFFORD COLLEGE? I know some kids parents who live a middle class lifestyle and are willing to pay upwards of 20,000-30,000 a year for their kids to go to school per year. It’s baffling and it makes me wonder.</p>

<p>*</p>

<p>The truth? Most people DON’T. And, most people do NOT go away to college. As for the “middle class”…it depends on what you call “middle class”. A middle class family who earns - say $60k per year - can’t spend $25k per year on college. A family that earns $125k per year (and calls itself “middle class”) might be able to.</p>

<p>If you want to “go away” which will cost more money, then YOU should get a summer job (or two jobs) and work your hiney off to minimize any extra money that your parents have to pay.</p>

7

<p>We are not wealthy, by any means, yet our family’s EFC is likely going to be in the $30,000 range. Even State school for our daughter would be $20,000. We don’t have that kind of disposable income lying around.* I see all these families walking around these college campuses - both public and private - and think, they can’t ALL either be so significantly richer than us that paying $30,000/year is no big deal, or make significantly less than us that they get huge amounts of merit aid. **How DO families manage to afford college??? *</p>

<p>Merit aid isn’t usually based on “need.” It’s usually based on stats. Both of my kids have big merit scholarships…but we have a very high EFC. So, if you want to reduce college costs, then look at schools where your child’s stats are very high.</p>

<p>When you’re looking around at kids at colleges, not all are paying full price. Many are…many have parents/grandparents who have been saving all along for college or are paying out of current income. Some are getting some aid and paying the rest with loans. Some parents are taking out loans. Some are getting some merit money and paying the rest with loans or family funds. Some are commuting…a big college savings!! Most kids do not go to “sleep away” schools.</p>

<p>College costs are not intended to be paid only from current income. Costs are supposed to paid for with past savings, current income, and future income (loans). </p>

<p>Again, if your child has good stats, then look at schools where his stats are very high for THAT school. And, I mean TEST scores…a 4.0 GPA is a “dime a dozen.” You need a high GPA, but that alone is not going to get you merit. You need HIGH test scores…those separate the “men from the boys.”</p>

<p>And, expect your D to take a $5k student loan each year. That will reduce YOUR cost at the state school to $15k. Also have her get a summer job to buy her books. That also helps.</p>

8

<p>emblanco is asking a fair question; it’s one I’ve been asking lately as we start the college search process. And it’s not just an issue of going to a cheaper school. We are not wealthy, by any means, yet our family’s EFC is likely going to be in the $30,000 range. Even State school for our daughter would be $20,000. We don’t have that kind of disposable income lying around. I see all these families walking around these college campuses - both public and private - and think, they can’t ALL either be so significantly richer than us that paying $30,000/year is no big deal, or make significantly less than us that they get huge amounts of merit aid. How DO families manage to afford college???</p>

9

<p>Just to answer the OP’s question - how do people do it - mostly they borrow money. I’m not going to get into whether they should - you asked how they do it. We are borrowing substantially to send both sons away to college - and we have many friends in the same boat. We consider ourselves middle class - but living in a very expensive area of the country.</p>

<p>OP - how about a compromise - attend TCNJ for a year or two and then transfer to Bucknell or someplace similar for junior and senior years? You could also go back to the FA office at Bucknell and see if there is anything more they can do for you. Probably not - but it can’t hurt to ask.</p>

10

<p>How do people do it? First of all, going away to any college, particularly an expensive private one, is NOT the typical college experience. It’s one that has been glorified and made the Holy Grail of post high school goals, but it is not typical. The average US college student is in his/her mid 20’s, lives with other family members, works and goes to college part time. That’s how people do it. As for those who go away to college or go to private colleges with high sticker prices, more than half get some financial aid. Most of them take loans. Too many of them and their parents take out loans that they should not be taking. There has been a lot of discussion about this college loan bubble that is in existence and the consequences if it should burst. </p>

<p>There are also those who make enough money to comfortably pay for college. They may make enough money to pay it, have enough in assets to pay it, or have other family members willing to help to pay it. Some of these families have been prescient enough to have SAVED money for college years before the time to pay, believe it or not. Some families, knowing this day will come, have planned their life styles accordingly, gotten a little bit less house, cheaper cars, stricter budget and put money away for college. Their kids may have done so too. All the birthday, graduation, special events monies and part of an allowance have been squirreled away in an account for college. Summer and after school jobs have also added to the amount. Most colleges figure a student contribution of about $2K a year but kids who have worked summers and done other odd jobs and saved their money will have a nest egg to pay towards their costs. Mine have paid about $5K a year towards their college and living expenses. </p>

<p>Then the college years are lean years for most of us parents. Vacation are often put on hold, as are home repairs and pension fund contributions. All money that can be spared goes towards college costs. We drive a junker, had no summer vacation away for the last few years, and have just not bought household things. We are pretty much broke even though my DH makes what is considered a high income. It all goes to education costs. </p>

<p>So the way most families do it is with a combination of past savings, sacrifices out of current income, loans, and the kids do the same. Yes, there are kids who spend their summers in Australia, Costa Rica, China to the tune of thousands of dollars, but there are also those who are working 2 or 3 jobs, trying to stockpile as much money as possible for the next school year. They also find a job at college, for living expenses and spending money. And they borrow. The Staffords are a good guideline for responsible borrowing on part of the student. </p>

<p>Who do you think should pay for your living expenses to go away to sleep away college? Who would have paid them had you gone to boarding school? Who do you think should pay for you to go to a private school? The same folks who would have paid for you to go to private school during your high school and earlier years. If you are desirable enough, a school will offer you a scholarship, and certain schools have financial aid, some more generous than others. You can go after those awards. </p>

<p>You are fortunate in that you have an excellent, affordable choice available. Where I feel there is a need is in some states where the state college tuition is so high that even with the loans, jobs and savings, kids from the lower income families cannot afford to go. That is the real shame in higher education. Those who are PELL grant eligible for enough to pay for a big chunk of those expenses can get by, but there a many kids whose families are not so low income to qualify for much or any PELL monies, but there families do not have or will not pay enough for them to even commute to a state school. If the cost of a state college or community college is high, then the Staffords alone may not be sufficient for those kids to go to school. I have seen such situations where the nearest college is far enough and inaccessible through public transportation from students’ homes, that to go to even community college is too expensive a proposition. Kids in that situation are the ones that I have sympathies for and would like to see some intervention so that any such kids have a viable college option. Kids like you who have many options are not the primary concern, in my opinion.</p>

11

<p>Fair question and there’s no “one size fits all” answer. </p>

<ol>
<li><p>Over on some of the other boards, you see practically everyone talking about the merit scholarships they or their kids are getting, even to OOS publics. Shoot, there are even kids out there getting a full ride, including room and board, AND a stipend for personal expenses. You come here and read that most schools have limited merit money, reserved for only the highest stat kids. Which is it? I’ve found the FA board to be way more representative of reality for most people. Still, for a few students, substantial merit aid is available. So, that’s answer 1.</p></li>
<li><p>Some families started saving early. </p></li>
<li><p>There’s a trust fund or a wealthy grandma </p></li>
<li><p>There are loans in the picture. </p></li>
<li><p>The students is somehow desirable other than for their stats - recruited athlete, talented musician. This just depends on what the school values. My employer lives the mission established by the people who founded it. It truly sees the life-changing value of education for the poor. So, the institution is very generous to in-state students with a an EFC of 0. </p></li>
<li><p>Any combination of 1-5</p></li>
<li><p>Creative living arrangements - I’ve had a few students working at the funeral homes. They live there (free room) in exchange for work AND a small salary, but it does mean going to the hospitals and nursing homes after hours to pick up the recently deceased. Not for everybody, but it works for them.</p></li>
<li><p>I’ve chosen to work for a private school. My oldest will come here and not pay tuition. Believe me, this is a place that, without a national ranking, wouldn’t get more than a smirk on the Parent’s Forum, but when all is said and done, my d will have a degree and darn little, if any, debt (debt would be for the clinical potion, where I don’t get any tuition benefits). I do know people who have decided to work at small private schools just for the tuition benefit. You don’t have to be a professor to use this. ANY employee qualifies.</p></li>
<li><p>Student goes to community college for 2 years and transfers.</p></li>
<li><p>Students live close to campus and commutes, saving on room/board</p></li>
<li><p>Students work</p></li>
</ol>

12

<p>Honestly the whole system is flawed. Just because one family makes more money than another doesn’t mean you have more deposable income. People making more money usually have significantly higher expenses and those expenses go up exponentially. However, finaid seems to really only look at income. So for all you individuals who are getting something, be happy because I would be thrilled with anything and so far we will not be recieving a single cent. Supposedly, we can afford to pay the full package regardless of the cost, which couldn’t be further from the truth. Who has $57k multipled by 4 years sitting in a bank (Not to mention that the prices keep going up) UGH!!! I guess I just a bitty betty right now. Sorry no offense meant to anyone…</p>

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<p>Dugareedoll, I don’t agree with you… Much as i’d love to do so, the facts aren’t there. The higher your income, the more you can downscale. Not saying that it is easy and that you would not lose some investments doing so, but yes you can. If you live in a half million dollar house, you can sell it and move to something of much lower cost. If you are already at the rock bottom of what’s available, you don’t have that flexibility. </p>

<p>I’m in that situation. Can’t sell my house for a nice gain, or any gain at all. But sure I can down size to much lower cost. Yes, I’ll lose out money doing it, but in the long run and really the short run after a year or so, I’d be lowering my cost of living enough to have substantial extra income freed Would hurt like the devil to do it. Plus I’ve gained the enjoyment of living all of these years in this house. All of these things have an economic toll. In order to have more disposable income, you gotta cut out stuff and it does hurt when those cuts are made. But you have something to cut. </p>

<p>You can reduce income, reduce assets much easier than gaining. It 's the opposite from body weight.</p>

14

<p>I live on Long Island. The price of housing is ridiculous. Lucky for us we got in right before the boom so I didn’t pay 1/2 million for my house but my taxes have gone up 100% over the last 10 years. Yes, I live in a nice/safe neighborhood but I don’t live in an exclusive one. No I’m not in the Hamptons, which by the way the Multimillion dollar homes over there actually pay much less in taxes than i do. My taxes are high because my township is so large that it encompasses many different neighborhoods and when those sections don’t make good on their taxes we have to absorb them. Great! I’m sorry for people who have a hard time making their mortgage payments, but thats my gripe. I didn’t over purchase. I didn’t over extend. I don’t drive a mercedes. I bought my home so that it was within my means. When everyone else was upgrading their kitchens, bathrooms, and houses. We stayed and just did with what we had. Upgrades for us were a paint job. When everyone was going to Europe or Hawaii on vacation, we were taking a road trip to the NE coast and staying with family. While others were being irresponsible we were working hard and doing the right thing. So now I have to pay for college too, while once again others have bankrupt themselves, because they made poor decisions, will get a good chunk of change, which once again I am then paying a portion of. Great I love paying for everyone else’s tuition because in essence thats what I am doing. When I pay $57000 per year that basically means I have contributed about $30 to each freshman’s education on that campus of 8000 kids. </p>

<p>As for reducing income, thats what I have done for the past 10+ years, while others were living lifestyles over their means.</p>

15

<p>Some things to think about w.r.t. college expenses-</p>

<p>-The town or city of the college can make a major difference in the college expenses. For example, our son attended a school in Worcester, a industrial city in Mass, and his off campus student housing was a half to a third of the cost his friends Boston apartments. Also, one S goes to a techie/engineering school the other S to a fancy city school - major difference expectations for the clothing allowance.</p>

<p>-Resident Advisor programs can provide free room and board. During a year we had mutliple tuitions to pay for, we asked our S if he would be willing to be an RA. (He has the personallity and aptitude for it.) We saved thousands that year.</p>

<ul>
<li><p>On Campus jobs help with expenses, and some studies show that as long as the hours remain reasonable, kids with jobs do better. </p></li>
<li><p>The differences in financial aid differs greatly from school to school. You need to do research.</p></li>
</ul>

<p>Still, these things only take the edge off. We saved some, the kids got grants and/or scholarships, they’ll have some student loans, and I’ve gone back to work full time to cover most of the rest. </p>

<p>I’m a big believer that if it’s the right choice, the money work out. But it isn’t easy. Hopefully the colleges realize how difficult it is and stop raising tuitions.</p>

16

<p>emblanco92 I understand your pain!!! My EFC is zero, yet my #1 Choice wants my parents to take out a loan of 12,000! The funny thing is both my parents combined only make about $38,000… So, just know that there are people out there going through the same problem. I wish all the time that my family was rich and I could go to any school I want to, but thats the way the cookie crumbles sometimes…</p>

17

<p>mema2: I agree with you in that I hope the tuition can stablize. I was on a finaid website that projected the cost of colleges for the next 4 years, in order for one to determine their true debt, and they had Stanford at 73K (Of course that included misc expenses, like travel etc) thats insane!!! What do people do when you have more than one child?<br>
That for me is the biggest issue. When we think about financing college for our oldest we can’t forget that we have another that will be there when the first is done. Our kids are 4 years apart. That’s another problem because at least if they were closer in age we would get some help. Instead, I’m pretty sure that we will be in the same situation 4 years from now.</p>

18

<p>Bdancer: Thats insane too!! I just don’t get it. How can they think that people can use 1/3 of a gross income (which of course is money that you really don’t even have) and still pay your expenses. Terrible… Shame on the schools. </p>

<p>It kills me to see these tuitions but perhaps what needs to be done like so many things in this country, is that people need to stop paying. When we all scramble to pay for things that are outrageously expensive, its incentive to these schools to keep increasing their tuitions. I gues in the long run, its our own fault.</p>

19

<p>Hear, hear, cptofthehouse! You were nicer to the OP than a lot of people would’ve been. She has a lot going for her & should grab at the most inexpensive brass ring.</p>

<p>The consecutive posts from cpt & ordinarylives should be copied & pasted as a quick primer to those parents & students just coming into the reality of paying for college.</p>

<p>We saved. We also take out loans. In the end, we don’t know how much will be left for us after all the loans are eventually paid off and this housing mess sorts itself out. Those are variables without answers just yet. But we were willing to take that risk to provide our D’s with the best undergraduate education possible, within reason. They’ve done their job by getting some merit aid. That’s all we can do.</p>

20

<p>When private colleges hit the $30K threshold, I did not believe that the upward steep curve would continue. They did. By the time, my first started, private colleges were costing around $45K a year. Now the official COA for federal loans is about $55K for many private schools, and edge towards $60K at some of the ones with particularly high room charges. And during these depressed economic times, colleges are still increasing costs 3-5% a year with state schools threatening to spike costs even higher with the cuts on the agendas. </p>

<p>My father was a Dept of Army civilian and I can look up what he would make today. I can also look up what the costs are for me to go to college today. Totally and completely unaffordable for someone in that income bracket. Back when I went to school, the cost was much less than his annual income, and yet I qualified for federal and school financial aid. Now his income would be about what the cost of the private colleges are and though there would be some financial aid, the amount he would need to pay for even full need schools is far more proportionally. There is no question that the costs have truly spiraled out of control.</p>

<p>We have a high income and reasonable assets for retirement, emergency, etc. No financial consultant would advise us to have less in terms of savings. So depleting those funds would be a foolish and inadvisable financial move to make. We made attempts to save for college, and can come up with about $30K a year. Not enough for the privates these days. And even with two in college together, our financial need is would only be a few thousand a year if both kids were in top priced privates.</p>

<p>So our choices are to unwisely spend our savings on college leaving us at much financial risk, borrow amounts that are inadvisable by any financial standards that are legitimate, look for colleges that we can afford, look for merit awards. Fortunately, there are colleges out there and awards out there that make college possible. But there are colleges out there, many of the the name schools, that are simply out of reach for us. That they are, is incredible to me, given our income and financial situation, but those are what the cards are saying. </p>

<p>It scares me and upsets me to see schools offering loans in amounts we won’t take to folks with very low EFCs. Doing that can tank some families, not to mention what it will do to the loan market when so many folks cannot repay these loans that are being so blithely offered in huge amounts.</p>