Possible Job Loss

<p>Just yesterday, DH learned that he might lose his job in a month. This was just days after DS picked a private college and we sent the deposit right before the deadline. He got a scholarship at this school, but it doesn't cover full tuition. The remaining tuition and other expenses are still a considerable annual expenditure. DS turned down 2 state universities for which we had a pre-paid tuition plan, as well as 3 other schools with net costs after scholarships in-between the state universities and the private college. I'm hoping to get some other parents' help with thinking through this situation. As you might imagine, I'm still in shock.</p>

<p>Luckily, I think we can afford to pay for most or all of the tuition from savings, but I would prefer to pay some of the tuition from current earnings to preserve the capital. I also work as well. DS received no financial aid based on need--only merit scholarships. We knew that in this economy a job loss is highly likely, but decided rather than making our DS choose based on something that might happen, we would at least let him start at the private school, thinking he could transfer if money became an issue.</p>

<p>My thought at this point is to go forward with his choice of school and get in contact with the financial aid office if the job loss does become a reality. I filed the FAFSA, etc., just in case this would happen, knowing full well that with our two incomes, our EFC would be high--in fact higher than the total cost of school. We can meet the first year costs.</p>

<p>I wonder if I am doing the right thing. State Univ. contacted him yesterday and wanted to know why he didn't choose them. I still don't think it's the best thing to ask him to change his plans for that school, and I don't even know if being past the deadline, they would even have a spot for him as it is a very popular school and I would think they are pulling from the waiting list by now. I need to assess over the weekend--this all happened just yesterday--what our financial picture will really look like if there is a job loss. If I find that paying for all 4 years would be a challenge, is it better to ask him to check back with State U. or at this point is there no possibility there? DS's stats were very high for State U., if that would help at all. I want him to have the best possible education, and I am fully convinced that the private school's reputation is such that he will get a quality education (the school is about the 30th to 35th in rankings for private universities--State U. is a good one but more like in the 90 to 100 range). Given what he wants to major in, I think he will be employable immediately after college at a very good salary from what we've been told by all the schools, so I feel this is an investment in his future that keeps us from having to support him later on. He is an only child, so we have no other tuition bills to pay.</p>

<p>What would you do if it were your DS? Thanks for your help. I'm not thinking clearly at this point.</p>

<p>Does the private college promise to meet full need of its students? I think you need to contact the financial aid department about its policies for the future, and also sit down and have a heart-to-heart discussion with your son. </p>

<p>Since your son is an only child and you can afford to pay for his college from savings (but understandably are reluctant to do so) – I think a lot depends on how much you are willing to give your son. That is – 4 years down the line, what will make you feel worse? Having exhausted your savings to keep your son in college? or feeling that you let your son down in some way by forcing him to attend another school for financial reasons (assuming he can still opt for the publics with the pre-paid tuition).</p>

<p>I thought I would weigh in. You sound extremely responsible, much more so than some of the other parents whose blogs I have been reading on this forum.</p>

<p>I missed the part where you said that your son is an only child. If that is the case then it reinforces the answer I am going to give you. First, he got some sort of scholarship to the private school you put a deposit on so you already have made a concession to financial responsibility vs. dream colleges. Since he is your only child you can really afford to stretch yourselves in this one direction and I think you should. If the job loss becomes a reality the change in your financial circumstances may change whether you qualify for need based assistance at the private school. You could call the financial aid office on Monday just to present the hypothetical to them and they’ll be able to tell you what they can offer you if the job loss becomes a reality.</p>

<p>I got to go to a private college. It was not the norm where I grew up but my parents were smart enough to push me in that direction. I got to go to Reed college where I had individual contact with my professors from day one. I studied hard and learned how to think and I believe that Reed had a profound effect on who I am today.</p>

<p>My daughter is going to college this Fall and we’ve been stearing her in the direction of the private schools. We’re a middle class family so we had no reason to think this was something we could afford to do but she got a merit scholarship to one of the schools she applied to so we are going to be able to do it.</p>

<p>I don’t mean to make light of your new circumstances but I hope you persevere. If you can manage it, it will be worth it for your son.</p>

<p>Are you in VA? If so, I suggest your son seriously consider going to UVA or W&M, both terrific public unis. Even with the scholarship and without the threat of job loss, it might be a stretch for him to attend the private school. I would not suggest this course if I did not think the two schools absolutely terrific.
My understanding of finaid in case of changed family financial situation is that it varies greatly from school to school. Some are willing to provide aid, but not all. It’s something to investigate.</p>

<p>My deepest sympathy for the situation that you are in. I can completely empathize. There are two questions at the center of your post that need to be brought forward.</p>

<p>First, you are not sure what you can truly afford four years of private university tuition. I tend to agree with the poster that suggests that you consider how you might feel in four years after having spent down savings to keep your S. in a private university. </p>

<p>Second, you are wondering about the private university, which you indicate is ranked 30th or so for private universities, versus the state u., which is ranked at about 90th or so. There are other pieces of this to think about: how is the state u. in the fields that you think that your son might study? What ways might he develop to help with his tuition, not in the immediate future, but in another two years, perhaps? A 30th ranked Private U. might be a lot closer to a 90th ranked State U., in some fields, then one might think. And the State U. might actually be better than the Private U. in a number of fields.</p>

<p>The other variables are your S and your H. Congrats on your S’s high test scores! Is he a real go-getter? As an only child, he might well immediately understand that he needs to not just keep expenses low, but be thinking about getting work over vacations or even taking time off to work, to contribute towards his education. And at least your H. has another month, and you have a job! There are signs that the economy is turning around. It could even be that your S will have some ideas about where and how to move forward.</p>

<p>Definitely get on the phone with the school that your S chose. Try to get exercise and sleep well, yourself, too.</p>

<p>Sons friend had two choices. Full ride state honors or full pay Ivy. He started at Ivy and left and went to state school starting the second term. I don’t know how he arranged it but it did happen. You may want to ask state school if they could hold open his admission for a semester.He had an option to go back to Ivy for the next fall semester. He did not.</p>

<p>Point is somehow they made this work. Check all your options.</p>

<p>Thank you all for these thoughtful replies. The group of parents here on the forum is so supportive. I really appreciate it.</p>

<p>First, you are in my prayers. Second, call Financial Aid at your son’s school and explain the situation. Most places are willing to work with you.</p>

<p>But also realize that since DH “might” lose his job they will probably just tell you to keep in contact on what happens. It is still a good idea to give them a heads-up.</p>

<p>I agree, call the FA office and find out what the procedures are if the job loss becomes a reality. Then I’d call the state schools and find out what the transfer possibilities are. Would he have to re-apply? Could he transfer after a semester or a year? Some schools will grant an automatic acceptance for the following year if you notify them by a certain date (no guarantee on transfer of credits though).</p>

<p>Perhaps he can start at Dream school, you can see how the job thing goes. If the layoff goes through and a new job doesn’t seem likely in the near future, then DS could transfer. But if the job loss is averted, or a new job is found quickly, then the issue would resolve itself and DS could still go to his first choice school.</p>

<p>Also, I’d be upfront with your son and discuss the options with him so he is prepared for the possibilities and not blindsided.</p>

<p>Good luck! This stinks, but you are not alone in this economy. I have 2 good friends with sons at private LACs and younger kids in hs, whose husbands were laid off last fall, both of the boys were 1st semester sophs at their colleges. </p>

<p>At least you do seem to have savings and a responsible plan for all of your futures.</p>

<p>I am sorry for what you’re going through right now. It is a tough place to be in. I would just second what other posters have said- confirm what the aid policy is at your son’s chosen school. Do they meet full need? You will want to make sure in the event your husband does lose his job. My son just finished his freshman year at a Virginia private that does not meet full need and it is tough to make ends meet. Re: the scholarship at private u - is it for four years and what does he need to do to keep it for four years? Is it going to be difficult to keep? My D had intended to attend the UofMichigan this fall; she had received a nice scholarship so we visited, placed the deposit, and then I lost my job. She made the decision to attend UVA instead (we are also VA residents). D decided she would rather have our help in the future with grad school rather than stretching ourselves to the limit so she could attend Michigan. I would really encourage you to include your son in this discussion. You might be surprised at what his thoughts are. I know I was with my D.</p>