<p>If you are a low income kid however the reasoning is very different. In
our state all the state schools are going to require heavy loans - at least
$20,000. So even if you have very good grades and stats say 1250 sats
and 3.5 gpa your choices are going to be very limited - stay home, go to
a community college or take out the loans. At a certain point you might as
well go to that high priced LAC - it's only about 10 grand more in loans. For
low income kids there is a whole different set of variables.</p>
<p>^^ But when the kid graduates, they'd probably think nothing of taking out a $20K+ loan for a new car. At least they're getting more for their money with the college investment as long as they keep it reasonable.</p>
<p>In our family, taking out a loan for a car is a big deal thing. So are school loans or any loans for that matter. </p>
<p>We barely finished paying our college loans before we started paying preschool for our first child.</p>
<p>But what happens when they graduate from college with a $20K+ student loan and need to borrow another $20K+ for a new car? Then there's the down payment for a house (or deposit money for an apartment) that they have to have when they move to their new city to start their new job. It just seems to go on and on. </p>
<p>I agree, however, that if student loans are needed to go to college whether IS or OOS, then kids might as well go for the better school. In for a penny in for a pound. (Isn't that the expression?)</p>
<p>Used cars. Look for a cheaper room to rent. Or move home and save while using home resources.</p>
<p>
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Used cars. Look for a cheaper room to rent. Or move home and save while using home resources.
[/quote]
</p>
<p>Yikes! Don't think my S will be able to move back home after he graduates from college because, hopefully, he'll have a job in the industry he is majoring in at college. (That industry doesn't exist in our town. He'll have to go elsewhere to work.) Besides that, my goal is to get him out of the nest and flying on his own.</p>
<p>I do recognize, however, that many students are unable to fly solo right after graduation because of the cost student loans. It's very tough for our children to go to college and come out loan-free and ready to take on the financial responsibilities of an "adult".</p>
<p>all this talk about our kids coming home after graduating. Seems OK to me if they need a cushion for a while - especially with this economy. </p>
<p>I always think of that commercial of the guy tapping out an IM to a friend who talks about the parents moving in with their children. Hmmm...don't want THAT to happen. Just a personal opinion, but I can't see sacrificing retirement funds for a "dream" school. But then, my son was very tuned into the cost side of the equation so we didn't have to worry...</p>
<p>If you can't find a job that pays enough to live independently and your parents are not able to continue sending you support, moving home may be the best option. My oldest spent several years here. The housing costs here are such that he could not afford even a room in a safe neighborhood. Not if he wanted a car and a girlfriend. And he needed the car the job. He did get some money saved in the time here, found a job in another city that paid more and had apartments he could afford. But it did take a few weeks. I was not willing to subsidize his rent since I had other kids in school. Many kids living in NYC area are subsidized by their parents.</p>
<p>The cost of college really is insane. When I went to college (back in the dark ages), I was able to go to a private (albeit relatively inexpensive) college without any financial aid (dad wouldn't fill out the FAF) and without any assistance whatsoever from my parents. I worked a lot of hours, I took out loans and I did without. Today, my daughters could not even dream of putting themselves through our state flagship (UIUC), the total annual costs for which are about 8 times the cost of my private college. Sure, there's been inflation, but not THAT much. Penn State was my flagship back then, and tuition was about $600 a year. It was do-able. Today it's next to impossible for a kid to do it totally on his or her own.</p>
<p>Ryegye's mom here. Maybe this has been covered, but has the parallel between the run-up on housing prices and the unsustainable increases in tuition that far outpaced inflaction occurred to anyone else? It seems to me, the tuition increases were only made possible through easy credit, in part though home equity. With those sources gone for many, paying such high tuition is simply not possible. Who ever said tuition cannot come down? Are we buying at the peak?</p>
<p>^^For our parents’ generation (mid 50's here) one middle class professional salary usually bought a modest home and sent kids to college without loans (maybe even private college) and left something over for a nice retirement. What happened?</p>
<p>For a while I've sort of been indulging in conspiracy theories. If creative non-conformists have to be worried about paying off their college loans (and now health insurance costs), there isn't much time left to change the world.</p>
<p>
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But what happens when they graduate from college with a $20K+ student loan and need to borrow another $20K+ for a new car?
[/quote]
But no one 'needs' a $20K+ car - they just want it. Like college - no one 'needs' a $200K college - they just want it.</p>
<p>We've been buying used cars for a while. We need a "new" car. We'll buy it used. We aren't going to be paying $20k for it and we can afford it. It just isn't a wise use of our money. </p>
<p>S bought a bit more car than he wanted, but got the perfect car for himself. Used, but low mileage, great condition. No way he could have touched anything new for twice the amount.</p>
<p>College expenses are indeed out of sight. As we wait anxiously for admission results from the elite private colleges we are wondering what kind of financial aid our DD will get if she does get admitted into any of them. Choosing between a full ride in our state flagship and paying $50K/year for the fabled ivy league schools is a tough choice. I am sure there are many families throughout the country who will have to make that decision in the next 3 or 4 weeks.</p>
<p>coloDad - I empathize with your waiting for elite private college admissions and FA results. My daughter is in the same boat. What keeps me grounded is my best friend from high school who went to UNC Greensboro for undergrad, Duke Medical School, and did his residency at Johns Hopkins. I have faith that top performers will bloom where they are planted..............best wishes.....</p>
<p>
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But no one 'needs' a $20K+ car - they just want it. Like college - no one 'needs' a $200K college - they just want it.
[/quote]
</p>
<p>So true. Many of us are the product of our culture (at least to some extent.)</p>
<p>
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We've been buying used cars for a while. We need a "new" car. We'll buy it used. We aren't going to be paying $20k for it and we can afford it. It just isn't a wise use of our money.
[/quote]
</p>
<p>Sounds like us. Although after spending years driving my used cars into the ground, I finally bought myself a new (not pre-owned) car. I picked the color, the amenities, the works. I have to say it was great driving around in a vehicle that had that new car smell and I knew wouldn't leave me stranded. Unfortunately DS was driving it to school one day about three months ago and a giant Ford Expedition slammed into the back of it doing about 50 mph and totaled it. (Wah!) The kids were okay (Whew!), but I am now back in a pre-owned car.</p>
<p>I just want my kids to have the option of buying a new car instead of having to pay off student loans. What a tough choice for them.</p>
<p>
[quote]
it was great driving around in a vehicle that had that new car smell
[/quote]
I like the new car smell okay but I also like the 'old car smell'. I have some really old cars and enjoy that old car smell every time I get into them.</p>
<p>I caught a ride to lunch a couple of years ago with a coworker and hopped in his old (early 70s I think) VW bug. The smell took me instantly back to to the 69 bug I owned in HS. It was amazing how the smell was the same and uniquely 60s/70s VW, and hit me instantly. I think it's true that smells are strongly imprinted on the brain.</p>
<p>THere are really no "easy answers," as has been shown by the thoughtful responses already posted. It is a weighing by the student (& family) of the options available and make the best choices for the individual situation.</p>
<p>There are actually many schools and paths that will get our kids to good places for themselves. My D is one who attended 3 semesters of community college before transferring to expensive private college, saving us some $ & allowing her to think more about what she wants to study and explore options. My S is at the same school with a generous merit award. We are grateful that we are able to help them but know they could have done fine at the local flagship U--living in the dorms or commuting from home.</p>
<p>The validictorian of my S's class of 2006 (who participated in many ECs & was competitive in 3 sports) kept thinking that she would get significant merit aid so that college would be affordable but ultimately was she & her family were hugely disappointed by the gulf between what she was offered & the school's cost so chose to go to flagship U with significant merit aid so she can save money for med school. Because she entered with so many AP credits, I believe she is graduating this spring, after only 3 years at the university.</p>
<p>With the current financial situation, I believe it will be even tougher to get good awards.</p>
<p>Each of our children is unique. My DD (first born) is extremely hard working, smart, passionate, & ambitious. She wanted to major in dance (modern) at the Univ. of Minnesota. She was so passionate about this at first. But then she got a campus job and started receiving a welcome paycheck. Started to question the feasibility of making a living at dance. She became interested in psychology. In May she graduates with a double-major degree. The U of M is known for having an excellent psychology dept. Turns out her professor went to Yale with a professor at UCLA. Unknown to her when she applied for graduate school, the professors spoke about her. She was offered a position in UCLA's graduate program for study for a Phd with guaranteed funding for 5 years. (Number 2 program in the country.) She was told that her path fhrough dance was a plus-an unusal approach. Who would have expected this? The point is--the passionate child should be supported in the path they choose. I do not regret the money (about $80,000) spent on her education. She is on her own now and will be paying her own way.</p>
<p>Great to hear that DD is moving ahead and has been able to pursue her passions! It is great to see how things do work in mysterious ways--thanks for sharing your story.</p>