On their acceptance section in Howdy, TAMU requests we choose one of the above options for tution payment. Any important points on the differences between them? I’m not clear on exactly what each choice represents.
You have until the NSC, I believe to choose. But mainly you can lock in at the fixed rate and this is what you’ll pay for full time tuition (12 - 18 credits) for the full 8 semesters. You pay a little more in year one and possibly year 2 but then it evens out basically and you end up paying roughly the same as variable rate. Variable rate is lower the first year or so and then progresses past the fixed rate option (which is why it balances out). BUT with variable there is a chance the cost could go up higher than expected and you end up paying more over the 4 years.
So basically, it’s whether or not you are a risk taker. We did fixed with my daughter and variable with my son. So far, variable is better for us (they are 3 years apart tho so not apples to apples).
Variable worked out for my son, now a senior (but at UT Austin). I was unprepared to make the decision about variable vs. fixed when his first semester tuition was due but since the variable amount was lower, I opted to just pay less. Since he took only 11 hours and now 7 hours his senior year, I think variable worked out better. He generally took no more than 15 hours but I guess if you have a student who plans to take 18 hours as a typical load, fixed might work out better. I’ll have another decision to make for my now high school senior son who needs to decide between A & M, UT Austin and UT Dallas.
I wish I could find a place to see a side by side comparison of the numbers. It is so difficult to make a decision based on guessing. I get the idea that the longer they plan to be in college or the more credit hours they will take, the better fixed is. I’m not sure where the break is though. I have read some people say anything over 2 1/2 years and fixed becomes cheaper, but I would think that is partly dependent on how much tuition goes up each year.
@lalibela definitely depends on how much it goes up or down (never see it go down though).
And doesn’t matter how long they are in school… only applies for 4 years! You don’t carry it past that.