<p>If I go to an ivy league school, I will be coming out with about $100,000 worth of debt. What I want to know is if Yale (my #1) is worth that,m or should I go to a place where I can get money?</p>
<p>If you are talking about undergraduate education, I would say it isn't worth it! This is especially true if you can get a mostly full paid scholarship elsewhere such as as a good state school.</p>
<p>The question is, who will loan a student $100,000? Probably no one without co-signers.</p>
<p>Depending on what kind of work you plan to do, that may not really be all that much debt. Also, you can't make this calculation strictly on whether you will get the money back by earning higher salaries--what's that Yale education worth to you, personally? That's different from what it's worth on the market. To put it another way, a Lexus and a Honda will both do a good job of providing you with transportation. Is it "worth it" to spend more for the Lexus?</p>
<p>
[quote]
If I go to an ivy league school, I will be coming out with about $100,000 worth of debt.
[/quote]
</p>
<p>How do you know this? Have you seen a financial aid offer from ANY college?</p>
<p>^ I agree. Apply to some reaches, matches and safeties and weigh financial award packages...then decide.</p>
<p>Yale students, on average, don't graduate with that amount of debt. This is listing from USNWR:</p>
<p>School, % of grads with debt, Average amount of debt
Princeton University (NJ) 26% $4,965
California Institute of Technology 34% $5,156
Harvard University (MA) 42% $9,717
Howard University (DC) 88% $10,868
Utah State University * 25% $11,040
University of Massachusetts–Amherst * 55% $11,227
Louisiana Tech University * 62% $11,765
SUNY–Albany * 64% $11,856
University of Hawaii–Manoa * 27% $11,950
University of California–Irvine * 52% $12,074
Clark Atlanta University 70% $12,900
University of Central Florida * 42% $13,053
University of Colorado–Denver and Health Sciences Center * 44% $13,082
Florida State University * 50% $13,290
Yale University (CT) 32% $13,344
University of Georgia * 41% $13,478
Brigham Young University–Provo (UT) 30% $13,714
University of Utah * 39% $13,741
University of California–Davis * 46% $13,835
Tufts University (MA) 36% $14,200
University of California–Santa Cruz * 51% $14,381
Michigan Technological University * 58% $14,453
University of North Carolina–Chapel Hill * 32% $14,487
San Diego State University * 48% $14,700
North Carolina State University–Raleigh * 48% $14,719
University of California–Berkeley * 44% $14,751
College of William and Mary (VA)* 32% $14,770
SUNY–Stony Brook * 59% $14,799
University of Massachusetts–Boston * 84% $14,805
University of California–Riverside * 62% $14,965
New Jersey Institute of Technology * 40% $15,000
University of Florida * 44% $15,045
SUNY–Binghamton * 60% $15,167
University of California–San Diego * 46% $15,170
University of Pittsburgh * 51% $15,331
University of Illinois–Urbana-Champaign * 51% $15,413
University of Massachusetts–Lowell * 58% $15,469
University of Illinois–Chicago * 54% $15,571
Southern Illinois University–Carbondale * 42% $15,748
Stanford University (CA) 46% $15,758
George Mason University (VA)* 48% $15,791
University of California–Santa Barbara * 48% $15,808
Rice University (TX) 41% $15,876
University of Montana * 71% $15,876
Clarkson University (NY) 66% $15,954
University of California–Los Angeles * 46% $15,996
Northern Arizona University * 57% $16,015
University of Akron (OH)* 60% $16,105
Rutgers (NJ)* 65% $16,283
University of Wisconsin–Milwaukee * 74% $16,683
Old Dominion University (VA)* 80% $16,850
Georgia Institute of Technology * 49% $16,875
University of Virginia * 33% $16,903
Oakland University (MI)* 48% $16,908
Johns Hopkins University (MD) 53% $16,932
University of Texas–Austin * 40% $17,000
Brown University (RI) 50% $17,007
Illinois State University * 55% $17,015
University of Colorado–Boulder * 40% $17,141
Rutgers, the State University of New Jersey–Newark (NJ)* 89% $17,143
University of Delaware * 44% $17,200
Columbia University (NY) 44% $17,275
Central Michigan University * 65% $17,365
University of Arizona * 44% $17,392</p>
<p>Hunt,
Using your analogy, I would only buy the Lexus if I could afford it without debt. OP, you really have to look at what your undergraduate degree would be in, whether you have any plans for graduate school, what the projected salaries are for your field as an undergraduate, etc.
As others have mentioned....and will you be able to borrow that much without a cosigner? Do the math on what the monthly payment on that much debt would be. Then figure out where you might live after graduation, what the cost of living is, etc.
You will probably find out that $100,000. is an unrealistic amount of debt for an undergraduate to carry.</p>
<p>Other posters have advised you to apply to Yale no matter what and see what you get. That advice is fine, but I think your real question is: "should I attend Yale if in fact that debt load is the only way I can manage it?" As taxguy mentioned, a Yale-worthy record probably puts you in the range for some lucrative deals from one of your state schools, but I would like to point out that an unusually good record may put you in range for a top merit scholarship from some very good private institutions also, including some near the top of the popular rankings. </p>
<p>One of my children had a high school record that was easily "Ivy worthy" and it would have been perfectly reasonable for him to apply to those that fit his interests. One local rep even gave him a private information session--a long one--that was completely unsolicited, but son was adamant that he preferred to graduate from college with money in the bank and zero debt. So, he concentrated his application efforts on good schools with programs that interested him, that also offered merit scholarships. His strategy worked very well for him, and he attends a highly ranked private university on a full tuition and fees merit scholarship. He likes the school, the program, the fact that his savings are intact and that he will graduate with no debt obligation to anyone. He also likes the feeling that he is pretty much putting himself through college, and for an independent soul like himself, that counts for a lot. </p>
<p>The decision of how much debt to incur for one's formal education is a very individual one, but it is a fact that $100,000 debt at the age of 22 probably represents significant limitations on your ability to choose where you live, what kind of job you take right out of school, how long it will be before you can own a home, the type of travel you can enjoy as a young person, and the ability to make further investments in your own future, for example, by starting your own business. My personal recommendation to students I know who have fabulous high school records is to cover all the bases, and include good schools with merit awards when making up the list of potential schools.</p>
<p>"Hunt, Using your analogy, I would only buy the Lexus if I could afford it without debt."</p>
<p>Why? Most people have to borrow money to buy a car or a house, and they accept more or less debt depending on what they value--I don't see anything intrinsically wrong with borrowing money to finance an education, as long as you have a plan to pay back the money. It's great to start your career with no debt, but you only get to go to college once--so it might make sense to pay for it afterwards, rather than saving up for it in advance. I think people tend to overestimate the importance of saving money on education, and sometimes sacrifice a good fit over amounts of money that wouldn't make that much of a difference in the long run.</p>
<p>No. (10 characters)</p>
<p>Comparison of financing a car to financing an education is flawed. An education actually yields a positive return on investment through increased salary. A car (99% of them) is an expense...so buying a car without going into debt is smart.</p>
<p>Consider the potential return on investment and payback period.</p>
<p>My guess is that you will see a big discrepancy between what fellow students will suggest (go for it!) and what parents will tell you. ($100,000! Are you nuts!) Live and learn.</p>
<p>Yep, weenie is no doubt correct. Those of us who have actually paid back debts of over $100k (with interest) can speak from experience.</p>
<p>
[quote]
Consider the potential return on investment and payback period.
[/quote]
</p>
<p>That sage advice is less useful than it seems. There is certainly no guarantee that any given Yale graduate will earn more over the standard pay-back period than a graduate of a "lesser" school. There are too many variables to even list them all.</p>
<p>Speaking as someone who left youth behind quite some time ago, I think freedom of movement and freedom of choice (location, travel, time off, investment opps...) while young should be an important factor when making the decision about how much of one's education should be financed with future dollars.</p>
<p>To put this in a little context, the average price for a house in the U.S. is $228,000--and most people would be borrowing most of that. A new Honda Accord costs about $20,000. So just how much is $100,000? It's not chicken feed, but how much it is to you will depend on your plans and circumstances.</p>
<p>yaycs11, try a few online debt calculators. It doesn't take long to realize that kind of debt is entirely unreasonable.</p>
<p><a href="http://www.mapping-your-future.org/apps/debtwizard/index.cfm%5B/url%5D">http://www.mapping-your-future.org/apps/debtwizard/index.cfm</a> -According to this calculator, you'd need to earn $172,620.50 per year for ten years to pay off your $100k debt. The chances of coming out of college earning that much are, needless to say, next to zero.</p>
<p><a href="http://www.csumentor.edu/FinAid/SLOPE/%5B/url%5D">http://www.csumentor.edu/FinAid/SLOPE/</a> -The safe slope is 8% or lower; your slope is 25.7%, which gives you some idea of what a high debt that is.</p>
<p>Want to go to medical, law, or business school? You can safely add quite a bit more debt on top of the already considerable debt. Add car and house payments, and the picture looks bleak indeed.</p>
<p>Use financial aid calculators to figure exactly what kind of grants and loans to expect. You may not end up $100k in debt.</p>
<p>Hunt:</p>
<p>The point is, most people do want to buy a house, and want to get pretty much the best house they can afford with their available funds. In general, houses are a good investment. However, if you are already paying off a large loan, the type of house you can afford is, well, less of a house, and probably less of an investment. </p>
<p>Cars are a bit different, as they are not investments, and they cost less. But the larger point is still relevant. Instead of paying cash for a car, feasible if you have not been paying off any debts, you have to finance it. And let me tell you, the idea of financing something that depreciates in value every time you move it is not an attractive idea.</p>
<p>Trade-offs. Trade-offs. You have to think in terms of the whole big picture. What are those loans really costing you--in opportunities, in choices?</p>
<p>Why do you want to go to Yale?</p>
<p>Hunt: The problem with your analogy is that you don't get a school loan OR a car and a place to live. You get the school loan in ADDITION to those other things. The other thing to consider - you will still be paying this back when you are married, and likely when you even have kids. :(</p>
<p>First of all, do we really know that the OP will definitely, for sure be personally in debt in the amount of $100,000 after attending Yale? Second, do we know what the best earning opportunity available to a Yale graduate is? (I hear tell of jobs on Wall Street that have compensation packages almost unimaginable to me, open to new college graduates from selected colleges, but I don't know if any Yale students pursue those.) Has the OP received any offers of admission yet? (That's not likely, at this time of year.) Isn't Yale on the generous end of the spectrum in awarding need-based financial aid to students it admits?</p>
<p>tokenadult, the OP may have good reason to believe that he/she will be short $25K per year at any school that does not offer merit aid. For any number of reasons, many families can or will not meet the EFC. While there is a good deal of mystery and some flexibility surrounding institutional awards, there are, in fact, many upper-middle class families that exceed the limits of generosity at even the relatively generous private schools. </p>
<p>I don't know what the OP plans to study, or if she/he will be at the top of the graduating class, or if she/he will have made the necessary connections to land one of those Wall Street jobs. There is no way to know the answers to some of those questions at this point. Hence, my advice to cover all the bases and try to avoid present-day choices that are likely to lead to serious limitations on future choices.</p>
<p>If I thought the choice were Yale vs Podunk State Teachers College in a remote part of an underpopulated state, I would offer different thoughts. But I think the choice-set is considerably broader than that.</p>
<p>If there is any chance at all of being eligible for some degree of financial aid, I advise applying, but not being emotionally committed--while making sure to apply to good schools that at least offer the possibility of merit aid, also.</p>