unless family has unlimited resources (or close to it), why any would send a kid to such expensive place when there are plenty of more affordable ones? I have to conclude that they must have been prepared “to cope”, there is no way to anticipate that price is stable or go down, it is all econ101, supply vs demand…simple, if nobody applies to these highly priced places, then the cost will have to go down…
Families make different choices based on their own/their child’s situation.
Some people can afford to pay (even at $70k) and choose to do so.
That’s true. I just wish that people would acknowledge that paying that much for college is usually a choice and not some kind of economic inevitability.
Judging by the typical applicant on CC it’s a given right to attend an elite school; hang the cost. For almost all families, financial considerations must be considered.
@GMTplus7 - Absolutely correct.
I have to say, that swallowing nearly 60k, times 2, annually, is not something easily digested. That said, we have been preparing for this for the last 15 years or so, and thus it is not entirely a surprise. Moreover, given that we have placed education as one of our highest priorities, even with this high price tag, it is something we think is not only well spent, but aligns with both our cultural and core values as a family–besides, what else were we saving the money for these last two decades?
Next fall we will have 2 kids in schools approaching 70K in COA…but thank goodness both schools meet need (and primarily through grants not loans!) so our actual costs won’t be as high as the sticker price. Of course, we are still paying a significant amount (we are not low income, so our EFC is still significant), but as @BoolaHi said, we’ve been preparing for this and education is high on our values list. So we make a few sacrifices (mostly by putting off major optional expenditures such as vacations or home renovations) and so far we are making it work.
We paid about $75k / year for 4 years for Med. School. Affording or not is also a decision. Most can withdraw from some kind of savings or go into debt, but again, most will choose not to do so. So, as I said, people who made a decision to send kids to certain places also made a plan on how “to cope” with the price tag.
This is true, everyone has to decide what their comfort level is, and when to bite the proverbial bullet. Another consideration, was as a family, what is an appropriate amount of debt to be taken on for each of the kids? In our situation, that was basically nothing for undergrad, but for our oldest D, who went on to medical school, we collectively agreed that debt would be appropriate, as it both affected the remaining college savings for the younger siblings, and since it was a professional degree, she would have more built-in economic opportunities for the future. In total, we agreed to an amount not to exceed 100K for her–this figure was collected from both what we could afford, her ability to pay back, and relative to what average dept is for medical students. It ended up just at 99K.
So, nationally, when she went to school (5 years ago), average national med school debt was at about 160K, her specific school ( a UC) had average debt was about 110K, so the amount we agree to, was 10% below her school’s average debt. Although it sounds like a lot, it currently is about 1/2 of what present day med student’s borrow, and is something she will be able to handle in the future. (the irony here is that my wife just paid off her medical school loans fairly recently)—ahhh, when one debt closes, another blooms…
https://www.aamc.org/download/152968/data/debtfactcard.pdf describes how long it can take to pay off medical school debt at physician pay levels. It isn’t pretty.
In our situation, we had the relative experience of her mother of already completing the debt process. The rich irony is that her mom, some 20 years prior, had a similar amount borrowed–closer to the 80K range. Our strategy basically included paying every 5 years, 1/3 more on the monthly, so after the 10th year, we were already getting close to knocking out most of the principal. Other families and people might have different circumstances, and in addition, I was practicing law full time, so there was an additional source of income to offset family expenses.
It’s funny that people who spend upwards of $60k/year for college indicate that they place a high value on education, almost as if those who don’t/can’t spend that amount don’t highly value education?
@austinmshauri That is your insinuation and assumption. I mean nothing of the sort–it was only as a clarification that juxtaposed against potential more inexpensive educational options, we found value in our decision. I know nothing about your value system and priorities in life, and as such we not even remotely begin to comment on something that is not even within my personal orbit.
How much to spend is such a personal, family-specific decision. My daughter is starting the college search as a sophomore. She is eyeing a range of colleges, including high-end (no merit), match (limited merit) and safeties. We don’t qualify for need-based aid, and understand that if she gets into a top school, we’re full pay. Between college savings and current income, we’ll have it covered and are ok with it. I’ve had to stop talking about college choice with some of my siblings, because of their never-ending criticism that we would choose to spend our money in that way. Never mind the choices THEY’VE made with their money…
Money, politics and religion are just a few topics that bring out our differences. But I think we can agree that the escalating price of a college degree is sobering. How it will affect the future of hard-working Americans should concern everyone.
It saddens me to see young people who can’t fulfill their potential. It hurts to see parents sacrificing their retirement. I truly wish we had an answer to the rising cost of higher education.
But the reason I jumped into this conversation was to thank all the contributors on CC who share their knowledge in an attempt to help others navigating the journey.
People make different choices. Compromise is a part of life. And information is a crucial component to success. Thanks to everyone on this forum! 
Re. Pell Grant: Just one data point here.
We are small Pell Grant recipients this year ($1325 out of a max of around $5000). Last year, our income was 74K, but we will have two in college (possibly), so Pell Grant was based on that income plus two in college, and I think based mostly on FAFSA EFC (ours was about $4400 this year)
This year, our income will be around 66K, but after the oldest graduates, I don’t think we’ll qualify for Pell. I don’t know exactly what the cut off is, though. (I ran one NPC and it had our EFC of about $5500)
@88jm19, which kids do you see being unable to fulfill their potential?
Kids don’t need to attend schools that cost $70K to fulfill their potential, you know.
@PurpleTitan I wasn’t thinking that a $70K school is needed to fulfill one’s potential.
Technically, a college degree isn’t “needed” either. Although I think we can agree that, in general, there is worth in attending an institution of higher learning.
My comment was directed toward the ever-increasing cost of attendance. It seems that “affordable” schools often follow suit with tuition increases, as society builds up a tolerance for the inflation.
So in other words, I was thinking about those kids who want to attend solid, state ($20-$40K) schools…who come from families that make too much to receive need-based aid…have stats which are strong, but not high merit $ strong,…and may have less lofty professional aspirations, but would be good, solid contributors to our workforce. Yes, I was thinking about some of the people who have shared their stories here at CC. I believe there is a large number of students who fall “in the middle” and of that group, a bunch get left behind.
Time will eventually show us the consequences of our higher education choices. I guess I just empathize with those who have tough decisions to make when it comes to financial viability. I’m glad a forum like this exists.
Right, @88jm19, for those kids who can’t get merit awards, can’t afford much, and are too far away to commute to a 4-year college, CC while living at home followed by a cheaper/in-state school may be the only option. Almost everyone can afford to pay $10K/year through work and loans, which should be enough for CC while living at home and 2 years at a school that costs $20-$30K would mean a total of $20K-$40K (spread over 4 years) which hopefully a family can save for.
I think, but don’t know for sure, that say 25 or so years ago two college-educated parents that both work at professional level jobs could afford to send their children to whatever college would accept them. Today, many can’t even though the colleges think their EFC is full pay. At that time, many people had pensions that would pay them a good portion of their salaries and along with social security was enough to have a comfortable retirement. Today, parents need to have close to $800K saved in 401Ks in order to take out $40K a year for a possibly 25-year retirement (which will not be worth as much near the end of that period), since very few have pensions. Taxes come out of that and the cost of medical coverage beyond medicare and prescription cost. That seems to be the difference with the large increase in tuition costs. Perhaps that was not the case back then; my parents were not college educated, but it seemed my friends and family members were able to attend private colleges with dads who were accountants or worked in banks (often the mom didn’t work or had just a side job).
Those who can’t (or don’t want to) pay $55K to $65K per year don’t value college education any less than those that do. Most value it very highly, but just don’t have the money.
Higher income parents who forgo the opportunity to pay $70k/yr out-of-pocket for an undergrad degree do not value education any less. They just haven’t drunk the KOOL AID that preaches that paying $70k/yr out-of-pocket is the only path for their children to reach their potential and have an awesome college experience.