In the OP’s case, that particular program at Cal is outstanding. If the parents can support this without feeling strapped, it is the better choice.
This is a family decision.
I agree that a good education is well worth my money. But if it’s $150,000 in loan with not sufficient income to really make this doable.that is different than if they have some of the resources to pay in savings and current earnings.
This is your family financial decision.
Congrats on that acceptance to Cal!
Paying for college education is never easy for people.
Thank you, to everyone, for the great advice. I will definitely be taking all of this into consideration as I make my decision.
@oldfort, yes, if the money is coming out of an inheritance, then it’s not a difficult decision.
Not all families have that much wealth or cashflow (or the cashflow may not be that certain), however.
How are you able to go to Berkeley for 34k a year? Does that mean you are getting some aid? And does that mean your parents have the 34k or they have to borrow? If they have it, the opportunities will be big at Cal, I agree. But if it is all debt that doesn’t seem possible. So the amount of debt has to be considered. What you can do as a student is to take your federal loans. You will be able to pay those off.
@PurpleTitan - It is always a difficult decision even when we think it maybe coming out of our kid’s inheritance. There is so much uncertainty when we get old that it would be hard to be certain there would be an inheritance for our kids, and how much. I plan on leaving an inheritance for my kids, and I assume the money I am spending on my kid’s education is coming out of their inheritance. But If I should lose my job or get very sick later than I could be spending the money I may need later.
OP - if your parents plan on funding your college education by having you take on large student loans then I wouldn’t do it. If they are taking it out of savings or maybe tapping into their home equity then I would take them up on it. There are some crazy adults who would spend money they don’t have on college (or anything for that matter), but if your parents are reasonable people then I would let them be the adults to figure out how much they can afford for your college education.
I do plan on taking out my federal loans, and my parents said they have a good bit saved up (I assume this doesn’t affect retirement or any lifestyle changes). They’ve also been strongly pushing for me to go to Cal, but we still have to discuss it further.
The direct Federal loans aren’t a lot (and should be fairly easily paid off by an engineer), so if that’s all that has to be taken out and spending the money won’t threaten your parents’ retirement, Cal’s probably worth paying for.
OOS students at Cal pay $55K per year; the in-state fees are $32K. You forgot to add the $23K differential. You will not be able to gain instate residency because you are coming for educational purposes to California. Your parents reside OOS so unless they plan on moving to California with you, they are going to pay $220K for your 4 years at Cal.