<p>This question comes up a lot. Is this or that college worth it? There are a number of colleges in the $60K+ category these days, and depending on transportation and other variable factors, a year at such schools can cost $70K easily. </p>
<p>The answer lies in each family’s situation. If you come from a family where your parents can easily pay the money, and they are willing and expecting to do so, go to it. My very close friend, whose kids go to school with mine, has a son who will be going to NYU this upcoming fall, and they are paying full freight. NO financial aid at all. And they don’t want their son taking out ANY loans, and he will be living at the school in the dorms, so yes, they will be paying the full COA cost for him. But they can do it. They will complain, they will have to cut and trim their costs, they won’t be able to buy a new car maybe, or not go away on trips or shop or dine out as they have been doing, but they can do it. Maybe they’ll take out some loans, PLUS or some better deal they can get. But they are high income, have saved for college, have a lot of assets, and were ready to do this. Lucky kid to have parents like that. For them, it is clearly worth it, as they were so hoping their son would get accepted, well knowing the cost, and though they are not happy with the price tag, and I’ll hear a lot of gripes and sighs, yes, they’ll feel paying that tab, it is how they want to spend their money. Just like I have a brother who buys/leases a new Mercedes every 3 years. Worth every penny to him. Or my neighbor who just had her kitchen which looked very nice (nicer than mine) revamped and done by a decorator, along with some other rooms in her house, for a price that made me gasp. I would not do it even at 10 times what we make. Maybe at 100X, but house decor is just not something that makes my lists. But paying for a college my kids want, yes, i’d do it too, if I could afford it without getting into an area called financial trouble.</p>
<p>At that is the crux of the matter. Where is that point for you? My opinion is that it is not worth it for an 18 year old starting college to take out $20K in loans each year for college, any college, unless it is just about a do or die situation. I don’t even know how you are getting that $20K in loans, by the way. You can’t be getting them on your own, can you? Are you cosigning some with your parents so that the lender can go after you as well as your parents and double dunn two credit reports if they can’t be paid? Otherwise, wouldn’t it be better for your parents to borrow the money from PLUS or better interest loans? </p>
<p>You want to be a business major? Well, you should take a very hard look at the business aspect of this. You will $80K (and I am assuming that is the total debt, that you don’t have other loans in there) face value, probably a lot more since there is this thing called interest that really racks up, and this thing called time that fuels that interest even more. Also, the cost goes up each year, and most schools will expect upperclassment to assume more of the payment each year in their student contribution calculations. So you will owe over $100K as a 22 year old graduate who will be looking for a job. And even as you look, that money will be accruing interest. Some companies will not hire you for that huge debt as there are risks in hiring those who owe a lot of money and most major companies do credit checks when hiring. How on earth are you going to be able to pay that and the expenses that go with starting out with a job? </p>
<p>My son got a very good starting salary/job with relocation expenses, some start up allowance, and it’s still tough, with all of the deposits, wardrobe, transportation issues. Also looking for a job cost a lot of money too. If you are so tight on the money and your parents are strapped as well, it does not come easily, let me tell you. </p>
<p>So what kind of a businees decision do YOU think is the wise one for you to make, given that your parents cannot afford this school for you?</p>