<p>Taking a gap year is out of question. I suggested it a while back and my parents wouldn’t have it. </p>
<p>Richmond happens to be my cheapest option. Loyola Maryland ($17.5k a year) and TCNJ ($17k a year) are both cheaper than Michigan. Maybe I could take out loans to help lower the cost of Richmond for my parents. Nothing dramatic like the $29k in student loans I was considering taking out for Michigan, but about $10-15k in loans would help ease the dent in my parents’ wallets.</p>
<p>And actually, Richmond did meet all of my need. They offered me $10.5 in loans in addition to around $40k in grants. I was just counting only the grant in my calculations. Plus, my family’s income is undoubtedly rising next year; I e-mailed my financial aid adviser and was told that my UR grant would probably be cut by $3000.</p>
<p>“Okay, if your parents are truly comfortable spending the differential and it’s a TOTAL of 20k for ALL four years, and they have savings intended for that and would not be removing money from a retirement fund (because that shows up as income and will wipe out your pell for the very next year) and you’re comfortable with the national average of student debt (which will cost you about 300 a month for 10 years when you’re done) then follow your heart.”</p>
<p>401k loan duh… Borrow from yourself and pay interest to yourself…</p>
<p>^bearcats! That depends on the instrument, as you well know. From a SEP that turns up in your AGI. Which ergo turns up in the posters FAFSA.
</p>
<p>But as we’ve since established, the poster is actually taking about $80k differential after 4 years, folks make $40-45 a year, have 100k to their name, and were unclear whether there’s additional 50 in a registered instrument or that’s included in the “savings” figure. So whether a disbursement pushes the AGI out of pell range or not is moot. The umich budget is a little too rich for a family in that earning range with 2 kids to put through college.</p>
<p>The differential isn’t $80k; it’s about $20k. Richmond is $60k over four years (without taking out any federal student loans) and Michigan is $80k over four years (with about $28k in student loans).</p>
<p>It seems like the general consensus is that $20k more is too much to pay, even for the “leaders and best.”</p>
<p>20k more to attend Michigan is a bargain. I encourage to consider it since 20k is not too terribly much. There are many ways to reduce costs while you’re attending school, regardless of location. The only cost that is fixed that you have no control over is tuition. After your first year, you can move off campus, find cheap housing (sublet from people instead of leasing a year long apartment), save money on food by not getting a meal plan from the school. There’s a ton of ways to reduce spending. Get a job and work a lot over the summer. Graduate in 7 terms instead of 8. There are many many ways to manage the cost. You’ll be surprised how much you really spend.</p>
<p>I’m a poor student as well, but I’ve been able to get by quite comfortably without worrying too much about costs.</p>
<p>As I am reading this, it really isn’t 20K more, it is 48K because you will need 28K in loans and then 20K more than Richmond. Richmond’s 60 won’t require any loans? Now I am confused.</p>
<p>What loans will your parents be taking?</p>
<p>Yes, all together, Michigan is about 48k more, but I plan to take out 28k in federal student loans (hopefully I’ll get a few scholarships and lower this number) to ease the blow to my parents’ wallets.</p>
<p>My parents don’t plan to take out any loans.</p>
<p>Okay, to make things clear once and for all: Richmond offered me $3900 in a Pell grant, $38420 in a university grant, and $10500 in loans. Michigan offered a $15000 scholarship, $7450 in a university grant, $3400 in Pell, and $6500 in loans.</p>
<p>^by differential, I meant the difference between your COA, package, and cash your folks would need, not the differential for Richmond. Both seem too high considering all the factors. However, at the end of the day, that’s your parents’ decision, and risk.
The truth is you’re treating the decision like an “either/or” decision on two expensive sports cars, when in actuality, there are many cars you could more comfortably afford that would serve the purpose – but that may involve a gap year, cc, or choosing a different school to which you’ve already been accepted.</p>
<p>I realize that’s not what you’re asking-- that you were simply asking whether it was worth 20k more for the dream school. The reason none of us can give you a straight answer on this is because it depends on so many unforeseen future variables. Medical expenses. Job losses. Emergencies. When things are this close to the wire in terms of affordability, and the central earning power of the family is less than the cost of attendance each year, it really is a financial high wire act.</p>
<p>Much of that risk is for your parents to determine. But at the same time, you shouldn’t likely have them spend 60 on Richmond if you don’t actually want to go there.</p>
<p>And if you were to go to Richmond, you would at least have the option of taking the full loan load if anything happened to your family’s financial circumstances. And you’d be less likely to have to leave. So in that sense, it’s more prudent to choose a school you could afford if things got tight when your sibling goes to school. </p>
<p>You’re obviously a good kid because you started this thread out of concern for your sibling and your family, and I don’t want you to feel bad whatever you and your family decides. But I’d also hate to see a good kid get half way through the dream and have to leave, which happens to a lot of families in this OOS situation.</p>
<p>Just sit down with your folks and take a hard look at your options again, make your decision, and don’t look back.</p>
<p>Another way to decide is to ask yourself if you’d be willing to pay your parents back their full share over 10-20 years, (in addition to you student loans) whatever kind of sacrifice that might mean, including no car, crappy apartment, etc. If the answer is yes, then go to Michigan. if
it’s no, then don’t. Because if your parents end up spending out their entire savings and retirement by the time you’ve both completed school, there’s a chance they would need your help in the future.</p>
<p>Something is wrong. Pell should NOT be different from school to school. Either Michigan or Richmond messed up. How much did it say you were eligible for when you completed FAFSA?</p>