<p>It's important to note that student loans are very strictly administered - penalties can add up very fast if you miss payments.
$20K at 6% paid in 5 years is 375/month
$50K at 6% paid in 5 years is 965/month, 10 years is 555/month.
$100K at 6% paid in 5 years is 1933/month 10 years 1100/month 20 years is 716/month</p>
<p>zafara; I was in the similar boat with my children. I told them both that I would pay up to our state university for them. Whether they went there or not. If they wanted a "different" school, I would pay up to the state tuition and they would have to come up with the difference. Either with scholarships, grants, work, loans, etc. Which they did. In my opinion, there is absolutely nothing wrong with this. And to be honest, I think both my kids appreciate is better. There is no reason for me and my wife to go into major debt in our later years. Both kids understood this and agree. They have a lot more years to pay back any loans. Plus, they appreciate things more when they "earned" it. Yes, I do quite well for myself. And I could afford to send my kinds to almost any school without taking on any major debt. But that isn't/wasn't the point. The point is for them to earn it themselves. And because BOTH of my kids did it on their own merits; one to a top 10 school; they are better for it. In my opinion. Because both were offered full rides to where they wanted to go, I gave them a generous stipend each month so they never had to worry about getting a job for spending money. I had the same attitude when they were in high school. Except for summer jobs cutting grass or similar, they didn't have jobs during high school. Their job was to do the best they could in school; enjoy all the activities (Which helped their resume and get them accepted to certain colleges); and enjoy themselves. It worked. I didn't spring this philosophy on them in their senior year of high school. They knew this as far back as they can remember.</p>
<p>So don't believe that because your parents are doing well for themselves that somehow they OWE you a $200,000 college education. They don't. There may be some parents out there that think they DO OWE their kids that kind of an education. Well, that's their business. The truth is, is if you or anyone else's kid wants one of those $200,000 educations bad enough, they can get it themselves. But, my daughter graduates from college in May; my son is in his freshman year; and they both are happy knowing that they EARNED their college education themselves and I and my wife won't be in debt and have to work until we're 75 years old.</p>
<p>If you are accepted to Yale, you should matriculate and attend Freshman year even if you are unsure you can afford all four years. I'm serious. The first year debt won't kill you. If you find from actual experience it isn't worth it, then transfer to a lesser and cheaper school. It will be a lot easier to transfer from Yale than to transfer in, and at your new school you can sport all your Yale t-shirts, and sigh about how much better it was back in New Haven. I'd think that if you can make good your threat to leave after Freshman year due to financial reasons, Yale might bump up your FA package if only to avoid lowering their retention and 4-year graduation stats.</p>