<p>My daughter wants to attend Carnegie Mellon Univeristy but the tuition is around $53000 a year and she only received about $28000 in scholarships, grants, and loans. My EFC is 0 and I have another daughter currently enrolled at a university.</p>
<p>She has appealed for more aid from CMU.
Does anyone know of an estimated value of aid that the appeal may gain?</p>
<p>I’m sorry, but I think that your daughter should set her heart on going to a more affordable school. I hope she has one that she has been accepted to.</p>
<p>From my experience, I have to agree. I’m not sure how you’ll make the stretch between what is offered and what is owed. Unfortunately, the appeals are usually futile.</p>
<p>This is typical of CMU, I would not expect an adjustment of more than a couple of thousand.</p>
<p>Doesn’t work. The debt would be crippling for her. You can go to <a href=“http://www.finaid.org%5B/url%5D”>www.finaid.org</a>, look for the loan calculator, plug in $110k (because costs will go up 5% a year), an interest rate of between 8.2% and 11%, and a 1% origination fee. Then see what it shows for the 10 years post graduation. NOT pretty.</p>
<p>What’s her intended major in CMU? I firmly believe that education is an investment, and what rate of return will you/your D get in return for this investment, regardless of you can afford it now, or taking out a loan and pay it back later.</p>
<p>Mini - I’ve noticed that you’re responding to a lot of the “Is it worth it to pay extra for . . .” threads with links to the loan calculator. I’ve also noticed that on the basis of it you advised one poster “$20,000 debt over 10 years should be reasonable” and another “you shouldn’t even consider taking on the kind of debt load you’re discussing.” The loan calculator is a very eye-opening exercise, and I hope that the students on these threads go through it. I believe strongly that an undergrad career among very talented, motivated peers can be a wonderful, life-altering experience. But unmanageable debt at age 22 is clearly life-altering too. Keep posting the link.</p>
<p>Thanks. I just think folks should be armed with the best possible information - all of it - so that they (students and parents) are in a place to make the best possible decisions.</p>
<p>And I deliberately am not posting the answers myself, as I think it important that students and parents do their own due diligence.</p>
<p>
[QUOTE=icylava]
What’s her intended major in CMU? I firmly believe that education is an investment, and what rate of return will you/your D get in return for this investment, regardless of you can afford it now, or taking out a loan and pay it back later.
[/quote]
She will have about 110K (or more like 125K with accumulated 4-years interest) in debts. She will have to pay about 16-18K per year to pay it back in 10 years. What major will you suggest which will provide good return for this investment (entry level with bachelor degree)?</p>
<p>Part of that $28K from CMU is LOANS (probably federal student loans)…making the future debt burden even greater. CMU is a great school, but for anyone who has a 0 EFC, it’s only a school to attend if the financial package is a good one. Your’s is not. </p>
<p>It’s hard to believe that you could bring up new circumstances that would make them decide to give you an additional $28K a year.</p>
<p>Family situation is also a consideration in debt. If a student comes from a family that can help with the loans, that 's one thing. But when you are a student whose family has a zero EFC, to expect assistance in those payments is a whole other story. </p>
<p>Is CMU even offering loans to the student for $25K a year or is this something the student has to find on her own? It is doubtful a student can find a loan for these amount without a cosigner, and is the family willing to be responsible for this amount of debt?</p>
<p>You can always appeal to CMU. If you have a good offer from another college, let them know and reiterate your family financial situation. I cannot imagine anyone from financial aid that could give an 18 year old that much in loans without a cosigner, and a family who is at zero EFC should not be taking on that kind of debt even if they could pass the credit check under most scenarios. </p>
<p>As a rule, I look at the STafford maximums as good limits for students. For those students who are in a very tight situation with little or no family help might even rethink those limits and look at the Stafford subsidized limits as what they should optimally borrow. Those kids whose families are willing to help out can consider larger amounts, but in any case should know the time and amount that these loans are going need.</p>
<p>Talya - There is a huge different in term of starting salary depending on the major. Please refer to this [CMU</a> Post-Graduation Survey Results](<a href=“http://www.studentaffairs.cmu.edu/career/student/salary.html]CMU”>http://www.studentaffairs.cmu.edu/career/student/salary.html).</p>
<p>For example, an English major’s median starting salary is $39,000, but for the Computer Science major, the median is $80,000. In other words, the ROI for CS is twice as much as English.</p>
<p>Icy, I agree with you that a student’s major makes a difference, but the relevant comparison here is CMU computer science with comp science major at student’s less expensive alternatives. And if student plans on attending grad school, the comparison is even more murky.</p>
<p>I know a few young folks who went to some great engineering schools including CMU. They are making the same pay as kids who graduated from less known schools. If the differential is affordable to the family and school, it’s one thing, but for a kid to go into that much debt really makes this situation one where I think it’s pretty clear what the reasonable thing is to do. If it were the Stafford maximum, or maybe even a bit more, or if the family were in position to help, that would be a whole different story.</p>
<p>Just talked to a friend who has a family member (cousinish) who is over $100K in debt from Tisch. The student was adamant that the Tisch name and connections would be every bit worth it. Hopefully, it will be, but right now he is an unemployed actor who owes 6 figures when he can’t even support himself with the job possibilities he has seen but not even gotten. The mom is sick with worry because she is not able to help out at all–divorce situation and everyone is broke. What in the world is this kid going to be able to do in a situation like that? $100K is a mortgage! He’s going to owe that for longer than you get for murder.</p>
<p>icylava, I’m very well aware about difference. My point is that it’s not easy to pay $16000 -18 000 even out of $80000 salary, especially with no back-up (meaning family ability to help).</p>
<p>she is a biology major</p>
<p>Jackhart, one of mine went there. Though truly an excellent school, I would not recommend it to a bio major, particularly one with possible med school or grad school or other health studies after college. First of all the grading curve is very tough which can make it more difficult to get into some programs. Also it is expensive, and to borrow even more for med school makes it a heavy,heavy load of debt even for a profession as high paid as that of physicians. </p>
<p>A more nurturing school that is more affordable would truly be a better environment IN MY OPINION. I say this as a mom who has seen many bright kids’ med school dreams dashed by a very tough inpersonal premed program. In some of those cases, it would have made a big difference had the student gone to something not so cut throat. As for the expense, well, just look at the numbers. There are folks in my generation who had big med school bills to pay, but these days, the cost is even higher and the returns in pay are uncertain.</p>
<p>Jackhart- same experience, same school, different major. Result of appeal from CMU was 0. But, maybe you will have better luck. I hope so. </p>
<p>My son decided that would be too much debt, especially since the other options he had were excellent. So, he sent CMU the “thank you for considering me, but I have decided to go elsewhere” letter a few days ago. It was sad for him (he really loved the school), but he knows he will be in a better financial position when he graduates. </p>
<p>Will the education be as good? I don’t know. Maybe I’m just trying to justify the situation. But there is always grad school!</p>
<p>Much as I like CMU unfortunately they don’t have the endowment to give the aid other colleges do. I do think this is a lot of money to owe. Two years ago the salary comparison with RPI and WPI was about $20,000 a year in CMU’s favor. However that’s probably because a number of CMU grads were going to Wall Street. I don’t know that you’d find the same difference in the next few years.</p>