I have been accepted into the College of Engineering at U of M and the Honors College at MSU. I would like to go to U of M, but MSU will be $36,000 cheaper over four years compared to Michigan. I am in-state as well. Is the gain in quality of U of M worth the $36,000 more in debt?
That’s a no-brainer. If you substituted the word “college” for “new car,” which one would you choose? The $36,000 car with 5% interest or the free one?
It is a very personal decision. You cannot get $36k loan by yourself anyway. So either it is not affordable or you would not be $36k more in debt (but in cost). Is it loan free at MSU? What is your intended major and how likely are you to declare that in MSU?
I will have to take out an estimated 40k loan at MSU. I want to major in Mechanical Engineering.
How can you be instate and need that much in loans? Who would back those loans?
You, as a student, are ‘only’ allowed a 5.5k loan for freshman year.
It seems neither school is affordable to you if you really need $40k to $76k in loan for 4 years.
I come from a middle class family that’s efc is barely higher than the colleges cost of attendance. My family is giving me money based on how well their invests do
Are you saying your family makes about 40k a year and has investments on top of that?
They make about $85,000 and have investments also.
They must have a lot of investment asset as $85k income should not make the EFC higher than $27k.
Hard to follow but go to your less expensive option. MSU honors is a great program and I personally like that the engineering students are roomed in the same dorm with activities abound.
Then your instate colleges should be affordable without cosigned loans - you’re allowed to take 5.5k personally and that’s fine but taking more than that is a huge problem. Basically your parents would be expected to contribute about 20k from 85k+ then you use your summer work (3k) and 5.5k and your instate universities would be affordable.
Are your arents saying they’d rather take on loans than pay out of pocket? Because interest rates make it a financially counter-effective choice.
They say that they could pay for one year at MSU and 1 at U of M. They are giving me $18,000 plus whatever interest there investments make in the next 4 years.
It doesn’t sound like either is affordable. If MSU is $40k, minus the $18k your parents are giving you and $5.5k in loans, that still leaves $16.5k. How would you pay this difference?
Honors at MSU is the winner hands down. MSU is a quality school with a good reputation. Taking on unnecessary debt is crazy.
Is that 18k per year or for all 4 years?
(It’s a very generous amount if per year).
Can you list your net costs at each university so we can help you determine whether they could be affordable. In addition, do you have any other choices?
Right now it sounds as if neither is.
(MSU before any scholarship, direct costs, should be 23k instate. Are you OOS ?)
My net cost at U of M will be $97,000 and Msu’s will be $61,000. They are giving me a guaranteed $18,000 over the 4 years plus whatever interest their investments make over the next four years. They have over $100,000 in investments right now.
Maybe ask you parents for the historical amounts of interest the last 3 years. See if this covers your costs.
Subtract 27k as Federal loans, 18k your parents provide and perhaps 10,000 from investments, whatever you’ve saved or will earn from part time jobs ($3,000 per summer, $3,000 per year) and you’re still short even for MSU.
Again maybe we are just not understanding your whole financial situation. Call the financial aid office at each school and discuss.
But you should decide if you want to be an engineer or go to a certain school for engineering. I say that because you have options but you might not like them. I actually had to do what I am telling you also but years ago.
See what community colleges transfer easily to each school and save a ton of money taking the basic classes to get them out of the way. Also Michigan is tough on math and some sciences to transfer so talk to them first.You can even start taking classes this summer to get ahead knowing you will be transferring later on.
Have your parents put away the money they would of given you and what you are saving them.
Another great alternative is Wayne State (you said you were in state). Great place to start at and actually finish but would also save you a lot of money. https://wayne.edu/facts/2016/costs/attendance/
I actually went to OCC for one year. Wayne for 2 and got into medical school a year early… I went to either Michigan or Michigan State to visit friends and for some parties. I was at Michigan so much since my girlfriend went there, that people still today thought I went there. Lol. I wanted to be a doctor and the school I went to didn’t define me. I actually had a great time.