I have a tough decision to make. I have received financial aid that covers half the tuition for my freshmen year at Georgetown University. I have to reapply for the financial aid annually. My parents are able to pay off the remaining tuition, but I feel that the amount is a bit high given that we are a middle class family. My father is in his late 50s and he probably would want to save some money for his retirement.
Do you think its more wise to study in an affordable university and invest the money for doing masters? I have not decided yet on what I will be majoring in if I went to Georgetown.
Talk to your parents about finances. In term of using a fixed amount of money for grad school vs undergrad it depends on how set you are on grad school and what program. If your parents can afford it and Georgetown is a place you want to go I’d do it. Grad school may or may not happen or it may happen in a field this isn’t even on your radar now.
@tk21769 My second option is to pusue a Business degree in finance at a public institution, graduating with $0 debts. In Georgetown, I’d be graduating with roughly $100,000 or a little less in debt. My parents would have to pay $24,050 and financial aid amount is $28,140 for 2016/2017.
@qialah My father is inclined towards the second option, which is to do my undergraduate studies at a public institution, and graduate with $0 in debts. Gain some work experience and save up for graduate school. I will only be studying in Georgetown for 3 years as some courses I have took back in the public institution are eligible for transfer.
little less than $100,000 in debt after graduation in Georgetown for three years of study. This is a tough call.
@samanthajumps - What major do you plan studying and what are the public college options? For some careers, $100,000 in additional cost is well worth the money. For others, it is not. You have not provided enough information to make an informed choice. If you unsure of your major, skip Georgetown and head to the public.
You seem to be saying that for 3 years you’d have to borrow the entire Expected Family Contribution ($24,050) plus an additional amount in student loans (~$11K/year in “self help” minus any earnings from your own employment.)
That’s a very large debt for just 3 years. The average Georgetown debt at graduation is less than $23K, and that is typically for 4 years.
Especially with your father approaching retirement, it sounds like you can’t really afford Georgetown. Even if you could make it work, that is a very big price premium to pay over the alternative.
@Zinhead I’m planning to study international economics at Georgetown. I have set my mind on finance if I were to head to the public college. I am aware that Georgetown is one of the best IR schools out there, but quite frankly I don’t see myself doing it.
@tk21769 The entire expected family contribution for three years is $82,400. The total tuition for Georgetown in 2016/2017 is $52189.55 . The FA given to me for this year covers 54% of the total tuition ($28,141). Family contribution is 46% of the total tuition, that is $24,053. That is all for one year. Now say these figures didn’t change for the next two years, the total family contribution for three years equals to $72,159. The total loans from FA would be $84,423 if the FA amount remained the same for the next two years. The total tuition expenses for three years is ≈ $156,568.65
This isn’t a difficult choice at all. Your father’s nearing 60, wants to save for retirement, and you have an option that would let you graduate with zero debt. Take it.
Yes, it does sound like way too much debt, but I’m confused by your references to “loans from FA”.
If Georgetown is offering $28,141 in need-based aid for the first year, then that must be grant/gift aid (not a loan). Georgetown wouldn’t be offering, as part of a need-based aid package, a student loan larger than the federal student loan limit ($5500 for the first year). The grant/gift portion is not a loan; it is never paid back.
Are you saying that Georgetown isn’t offering you any grant/gift aid at all? Is the “FA” a private loan from another source?
If need-based grant/gift aid is covering 54% of your tuition and your parents are covering the other 46%, then you shouldn’t need to borrow much more than ~$15K/year to cover room, board, and other expenses (unless your family also is borrowing to cover their 46% expected contribution). Even $15K X 3 would be a big debt, but presumably you could offset part of it through work-study and summer employment.