How to afford OOS tuition?

<p>Hello all!</p>

<p>I was, luckily, admitted EA to UMich a few months ago. It is, without a doubt, my top choice as I plan to major in CompSci in LSA; few other schools offer me the options that this institution does, not too mention the wonderful town of Ann Arbor that surrounds it. I love the school and could not wait to attend in the fall.</p>

<p>Until I found out about what I am likely to pay.</p>

<p>For the year of 2011, my family's income will be approximately $122,000 and my EFC was calculated to be $26,021. According to the Net Price Calculator on UMich's website, I will be expected to pay between $40,000-$54,000 a year, which I cannot afford by any means. So my question is, are there others out there that are in a similar situation? If so, what is your plan of action? Hoping for lots of scholarships? </p>

<p>I really want to attend the University of Michigan, please help me make this a reality.</p>

<p>Unfortunately there is very little that can be done other than acquiring loans. UMich is not the most financial aid-friendly school and it only gets worse for OOS students. I really wish there was something else I can say to you but unless your parents have a college fund on the side, loans are your best option. However you can also attend a state school for one or two years and transfer in.</p>

<p>Go Blue!</p>

<p>I actually just recalculated my estimated costs and it now puts me at $25,000-$35,000 after work-study/federal student loan, which is much better. All the same though, I think my comfort zone is a max of $30,000.</p>

<p>Wait until you get the official financial aid award notification. Its often very different from what you’d expect. In the mean-time apply for internal and external scholarships that match your profile.</p>

<p>D’s friend got into Northwestern and was in the same position you are in (with similar family income and ability to pay). She worked with the college counselor at HS and scoured the internet for merit scholarships for which she could apply. After applying for literally dozens of scholarships, she received several small scholarships, $1K to $5k that made Northwestern doable for her. (I believe her largest scholarship was from a local Rotary club.) You might consider trying that tactic.</p>

<p>Very different in a good or bad way?</p>

<p>And yes, I will start to search everywhere I can for scholarship money. Hopefully I can find something substantial!</p>

<p>Thanks you guys.</p>

<p>I’m Instate. The online calculation using the EFC and everything told me I’d have to pay ~20k per year including housing. Came out to ~7k. Fairly different I’d say.</p>

<p>Zach,</p>

<p>How did you come up with a comfort zone of 30k? When I was in your shoes, I just thought about where I picture myself when I’m 40. How much would I value the college I went to? How much of a difference does x thousand dollars really make for the rest of my life? When I consider my dream job, what reputation would my education present to potential employers, clients, etc?</p>

<p>With that in mind I am now finishing my freshman year, and Michigan has been all I’d hoped it would be plus some. I’ll be graduated with six figures in debt, but interest rates are very low and I’m not worried in the slightest that I made a mistake. FYI, Discover has some of the best rates and takes away 2% of the principle on your loans upon graduation.</p>

<p>I personally am in the same position as you, Zach. I’m OOS, my mom is a single mother, raising 2 other kids, and makes around $85,000. The tuition is simply too much for us and from what I hear, Michigan is very stingy with giving good financial aid packages to OOS students. I was planning on taking a visit up to Ann Arbor mid-April and while there, speaking with the financial aid advisor in person (if that should make any sort of difference) and negotiating some type of increase in my package. In the meantime, I’m applying for any scholarships I can find, large or small. But I am definitely hoping for the best just as you are.</p>

<p>Do not, do not, do not go massively in debt for any school. It is a stupid, stupid decision that you will pay for for most of your early adult life when you’ll be wanting to do things like buy a car, a house, and start a family. You should not take out more than the Stafford loan limit for an undergraduate degree. </p>

<p>Have you tried talking to your parents to figure out what they’re willing to pay? That’s really where you need to start.</p>

<p>^Roman is very wise. It is very scary to hear an 18/19 year old talking about 6 figure debt and “dream jobs”. Most jobs are just that-dreams and 6 figure student loan debt will haunt most of you for a very, very long time.</p>

<p>I will respectfully disagree. When you look at the situation ignoring preconceptions about debt, say 100k loan at sub-4% for 10-15 years, you are talking 9-13k a year in payments. Compared to a questionable in-state school, the math works out very favorably for the more rigorous, lucrative majors.</p>

<p>Doing your math (which I’m not going to check the accuracy of, because I really don’t care), that is $750-$1090 per month JUST in loan payments for 10-15 long years (think about it- you’d be in your mid-30s by the time you’re done paying off the loans). That’s a nice car payment or an apartment/house payment. That’s quite a chunk and NO ONE can count on a 6 figure job after school. No one. Sorry. Even a very “lucrative” major is not guaranteed. More likely? Yes, very much so, but not guaranteed and that’s a very large gamble. </p>

<p>And at a “questionable in state school” most people aren’t taking out the FULL COA in loans. They’re getting aid or going to schools that are affordable. </p>

<p>Quite simply, there is a reason that there is a huge student loan crisis here in America. It’s because people take out 6 figure loans on the assumption that they’re going to get a very nice paying job and then that job doesn’t happen. </p>

<p>But whatever. Handicap yourself with loans. I really don’t care. If you’re convinced that your major is going to be worth it, who am I to tell you otherwise?</p>

<p>I hope the OP figures out how to pay for U of M, really I do because it’s the school he/she wants to go to, but going $100k in debt is NOT the answer.</p>

<p>I absolutely agree with Roman. </p>

<p>I work as a Nuclear Engineer at a nuclear power plant in CT and I can tell you, they honestly DO NOT CARE what college you go to. It is wether or not you took the time to get the 4 year degree. I’ve talked to my managers, supervisors, and numerous other department heads about this, and they all say “We want applicants with a 4 year degree for them to receive the theory portion, we will teach them what they need to know.”</p>

<p>I would love to go to UM like everyone else but there is no way I’d be willing to pay that price. </p>

<p>The only degree worth going to a highly recognized university for is your masters. </p>

<p>Just like Roman said, do what ever you want. You would most likely regret it. I plan on attending UCONN and only receiving a total of 25k debt IF I’m unlucky.</p>

<p>Good luck.</p>

<p>So if Zachary borrows 30 grand a year that puts him at $120,000 assuming he finishes in four years. Zachary marries a gal with the same debt and suddenly they are in the hole for $240,000. Most of my friends married college grads with around the same debt that they took on, so this is not an unlikely scenario. Ouch!<br>
I smell another government bailout.</p>

<p>And I’m really not in the mood for my tax dollars to bail out someones dream >.<</p>

<p>Zachary, in my perfect world, all the state u’s would receive fed funding instead of state funding, and then there’s be no such thing as OOS fees (which is pretty much how it works in Canada, btw). However, since that is just not how it works in the U.S., you will want to make sure that as much as you love UMich, you have a good, affordable, in-state SAFETY or a generous top-tier private lined up just in case you find yourself unable to afford UMich.</p>

<p>Save your money – or your parents’ money – for grad school where prestige matters more. Obtain the most cost-effective and rigorous undergrad you can. Then you will be able to enjoy a nice life with a roof over your head and a vehicle to get around in while other six-figure-OOS-indebted grads give all their hard-earned cash to the bottom feeders who actually FINANCE young kids to six-figures at percentages almost double what you’d pay today on a HELOC (home refi.)</p>

<p>The thing about student debt is that it is NOT discharge-able in bankruptcy, meaning there is no escape from this mistake if you make it. NONE. And with respect to government bailouts – I wouldn’t count on it. Not politically popular and the banks WILL GET THEIR MONEY as the loans cannot be discharged. That means things like garnisheed wages and liens against homes.</p>

<p>However, that said, there’s always a chance that you will receive EITHER merit money or need-based funding – some OOS do!</p>

<p>Some OOS students will receive $20,000 engineering or LSA entrance awards such as Michigan Tradition scholarships. Those are not purely stat-driven – sometimes they’re offered in underrepresented areas or to first gen college students, etc. to meet whatever mix criteria the school is looking for. Then there are awards such as Shipman, which is highly selective scholarship competition.</p>

<p>But it really is a very small percentage of the student body who receive merit at UMich. Best wishes in your search.</p>

<p>And remember, if you do well elsewhere, Michigan often has nice, fully-funded fellowships for outstanding grads who attend grad school ;)</p>

<p>Don’t get too caught up in the IS/OOS difference. Unless you’re talking about the real low “in state” bottom feeder schools (I’m from MN, so most Minnesota State schools qualify), there really isn’t that much difference. We’re an upper mid class family. The University of Minnesota costs us 23k a year, all in. We’ve been offered nothing other than loans for aid. University of Michigan is 46k a year, all in. We’ve been offered the same loans, + 10k a year in grant money. The out of pocket difference for our D is around 7k a year…will anyone here tell me that U Mich isn’t worth that???</p>

<p>She could consider other schools (Bemidji State? Winona State?) and save another 10k. But really, if you’re going to invest the time? isn’t a top 50 school, with all its degree cred worth it? I keep asking myself…who’s gonna show up at a Bemidji State career fair???</p>

<p>I think for your D it is definitely worth it. The problem is most admits don’t get 10K/year scholarship from Michigan. $7k/year definitely worthy it, $17K/year maybe not. Fortunately, we never had to do that calculation because my D also got $10k/year. But without that $10K/year, my D might not have gone here.</p>

<p>$30k extra in loans? Yeah, don’t think its worth it for undergrad. Unless that 30k is all you’re taking out in loans.</p>