is $15k a year for an Ivy worth it?

Paying for College
1

Okay so my parents make about $90k a year and most net price calculators have the EFC at $12k and, if a school pledges to meet 100% of financial aid, my cost being about $15k a year. However, my parents say that there is no way they could even meet $12k a year and say that $8k is a stretch. So, they are making me take the rest out in loans, even though colleges say that I shouldn’t have to have loans at all.

Is it worth it to go to a more exclusive college that awards only financial aid if I’ll have to take out loans?

2

Probably. It will depend on the specific colleges you get accepted to.
If you get accepted to other colleges that calculate your FA package with loans and it costs the same, it would be worth choosing the college you prefer. If you get accepted to a college that isn’t able to meet your financial need and gaps you, it may be worth the loans for the Ivy. If you get in a bit cheaper at a college that isn’t as good a fit for what you want to study, the loans for Ivy may be worth it. If you get in for the same or cheaper to a different college you like as much or better, the Ivy isn’t worth it.
For that amount of money, IMO, it’s worth considering the Ivy if you get accepted.

3

You parents have given you a number. That’s what you have to work with. There are also limits on the amount you can borrow without a cosigner. Would they cosign? Finally, with a 90k salary, I don’t think your EFC is going to be as low as 12k unless your family has a whole bunch of kids. Are you saying the NPC of the super aid schools, like Harvard or Princeton, gave you a figure of 12-15K? Other schools can’t afford to be nearly that generous. I’d expect to see a FAFSA EFC in the 20s.

4

Just because a school has a no loan policy it does not necessarily mean that you will graduate debt free.

You and your family are still responsible for meeting your EFC and your student contribution through summer earnings. If your parents yell you that their max budget is 8k and your EFC is 12k and their are no loans in your financial aid package it is not unreasonable for you to borrow $5500 to bring their costs down to $6500

If you don’t have a after school/weekend job, you need to get one. You will need start up monies when you get to school.

Overall debt of $27,000 over 4 years is not bad

5

Take the Direct Loans every year. For freshman year, this will be $5500. That still leaves you a bit short on covering costs IF you get accepted to an Ivy League school that meets full need. So…get a job now, and start saving.

You are a junior in HS now. You will start college in 2018, right?

The Net Price Calculators are currently set for students starting in 2017. You will need to check these again in September 2017…some will actually change their formulas, and their policies regarding need based aid might change.

Your 2018-2019 financial aid forms will use the income from 2016.

6

<<<<
Okay so my parents make about $90k a year and most net price calculators have the EFC at $12k and, if a school pledges to meet 100% of financial aid, my cost being about $15k a year. However, my parents say that there is no way they could even meet $12k a year and say that $8k is a stretch. So, they are making me take the rest out in loans,

even though colleges say that I shouldn’t have to have loans at all.
<<<

No, that’s not what the colleges are saying. They’re saying that THEY won’t give you loans, but they’re not saying that you shouldn’t have any. One reason that they arent’ giving you loans is because they know that sometimes parents in your income bracket can’t pay all of their EFC so the student is able to borrow $5500 to help cover.

If you end up with a net cost of $12k-15k per year, then some of that is “fluff” and you can reduce that by being frugal…buying used books, or renting text books…and minimizing personal spending. When you move into your dorm, bring enough budget-purchased bulk shampoo and other toiletries to last a year so you’re not buying at higher prices at a school store.

You can reduce your family contribution by $1k or more by being economical.

You can also work/save over the summer to add $2k-3k towards those costs.

I totally understand why your family would have a hard time coming up with about $800 a month to put towards college. They probably do not have a lot of extra money left over each month. Talk to them about that. $8k would mean they would be paying $800 a month for 10 months thru the school’s payment plan. If that’s not doable, then what really is? When parents look at this from a “per month” perspective, they can often more reasonably figure what they really can contribute.

So, assume that they really can only contribute $500 a month for 10 months…$5k per year. (Remind them that they can get the tuition tax credit which I think is around $2k per year, so that will help)

$5500 from student loan
$5000 from parents
$2500 from summer work/savings

There’s $12,500…

Would you have to fly to your school or would your parents drive you?

7

$15K/year for an Ivy league education is very much worth it. Local city state schools cost that much.

This is an opportunity that is too good to pass up.

Congrats on getting accepted and receiving such a fantastic FIN AID package.

Good luck.

8

$15,000 a year is only worth it if the family can actually pay this amount. Otherwise an acceptance isnt worth the paper its printed on.

@MassDaD68

9

Well, they can pay 8k, so that means coming up with 7K. This is entirely doable with the direct loans and jobs. It’s worth it if you’re willing to make the most of the opportunity. Get a job.

10

most state schools will cost at least 20k, even with FA, so yes 15k for an ivy is worth it. there are cheaper options like community college and you can always chase down merit too. But the merit rarely covers the room and board portion (which can come close to 15k). other posters have given good examples of how to stretch the dollars and utilize the loans effectively.

11

$15k minus parental contribution of $8k means that you need to come up with $7k in loans (federal loans go up to $5.5k first year, increasing to $7.5k later years) and work earnings. This is generally considered doable. If you live frugally, then you may be able to cover some of that amount by not spending the assumed amount for other/personal expenses and such.

12

As a very general rule with loans, don’t borrow more money (you and parents) than the starting salary of your desired career.

13

TBH, I would just go to community college the first two years and get your general education out of the way. It will be SO much cheaper. Then go to ivy as a transfer (if that school permits transfer). 15K a year is steep, and you have to be prepared that you might not have a job that pays well after graduation. What if your parents can only give you 8K for one year? Then what do you do? So you have to imagine what a $350 to $700 loan payment each month for 10-20 years is going to feel like. The less debt the better. I had a great time at community college (and still had that college experience) and I cut my loans in half.

14

^actually, for a student with ivy-level caliber, Ivies would be cheaper than CC+ flagship. Ivies rarely admit transfers and many flagships nowadays are in the 25-30K range a year.

15

I normally would be the last person touting the Ivy’s, but, if at all doable I wouldn’t pass this opportunity up. I would think that the income potential after graduating from an Ivy would offset the loan risk. OP can you whittle down some of the expenses/potential loans by working in the summer? You may be able to come up with at least $2000 per summer that way. And as stated, buy/rent used books, thrift store clothes, bulk supplies of other kinds…it is a life investment.

16

I don’t want to be the buzz kill but there are always additional and inevitable surprise expenses that you or family may face so don’t count on it being only 12k and you guys being able to pay by cutting down some non essential expenses. That’s how first time homeowners go into foreclosures if they extend themselves.

17

Definitely true ^. Books, setting up a room, a warm coat, replacing a cell phone, etc…

On the other hand at an Ivy and others there are grants that aren’t available elsewhere. I am thinking of my alma mater’s emergency and travel fund for low income students who need to go home unexpectedly for whatever reason. Or all-expenses-paid study abroad and internships.

18

Is this an offer or hypothetical for planning? Even if you have full tuition at other schools, you are going to face room and board from $11,500-13,500 so this is a good deal. I don’t push loans either but $8k x 4 is $32,000. Drive a paid off used car for five years after college and your college debt is paid for.

19

By the way what’s the rationale behind financial aid covering all expense paid study abroad summers for ines who already got free rides, instead of giving aid to other kids like OP?

20

Free rides at the Ivies are need based. The kids who receive them wouldn’t be able to participate in those types of programs without that kind of help. And I don’t know that they’re only given to kids who get free rides. Maybe OP would qualify for the program too.

I think $15k sounds like a very good deal. I’d try to make it work.