<p>Afford is a funny word.</p>
<p>In business, that word is NEVER used. Instead, the terms are Return on Investment, Return on Capital, Risk Adjusted Return, Opportunity Cost, concepts like that.</p>
<p>A better question would be: College A at $X, with Y cash freed up for investment, or Option B at $W, with Z cash freed up for investment, where cash can be negative (LOAN) or postive.</p>
<p>However, most of the time parents won’t give the student the saved cash but keep it themselves.</p>
<p>For example, if, inclusive of all merit and financial aid, a first preference private college will cost $130,000 total over four years, and a less preferred public flagship (or private college with a boatload of merit and/or financial aid) will cost $85,0000 for 4 years, but the parents will not put the $45,000 difference into the student’s bank account, then the discussion is over. The student takes their preferred choice since it doesn’t cost them anything, and they do not forego a cash gift. If however, the $45,000 savings for College B is given as a gift to use as the student sees fit, the discussion becomes much more interesting. College A with no money in the bank at graduation, or college B with $45,000 in the bank at graduation. Hmm…</p>