<p>OK, I am trying to decide if I should pay the extra $1000 per semester for 8 semesters to hold the tuition constant at the 2010-2011 rate for all 4 years of undergrad study for sonny.</p>
<p>I have done some preliminary calculations and it appears that our family can save anywhere from $1700 to $3800 over seven (if sonny graduates one semester early) or eight semesters, if tuition rises approximately 5% each year.</p>
<p>I know it was mentioned here that the tuition increase was less than 5% (was the increase closer to 3%?) either last year or the year before (because of the bad economy and NYU making some concession to that).</p>
<p>However, historically, the annual tuition rate should increase 4-6%, right? Any parents or students (hopefully those of you who have paid tuition for a few years) with more certain knowledge about the % tuition rate increase each year, say in the last 3 years or so?</p>
<p>That would be helpful to me. At first, I thought the Tuition Stabilization Plan was not a good deal, but based on looking at 5% annual tuition rate increases, then the couple to a few thousand dollars saved would be nice savings. (Fortunately, we are in the position to pay the extra two thousand a year under the Tuition Stabilization Plan). But the big question, is it worth it?</p>
<p>I can tell you that 4+ years ago when we were in your position, we did the same sort of research you did. We figured out what was the break-even point and decided to take the risk of paying extra up-front to stabilize the tuition. After a couple of years of checking, I realized we had made a good choice. Then I stopped calculating.
It does have the positive feature of removing some stress from awaiting the tuition bill each year. Good luck. Guess well!</p>
<p>Your response is very encouraging, but I figured that the first two years will not really show any savings (and may actually show us paying more initially because of the two thousand dollars extra each year). My calculations show that the savings likely come the 4th year, with break even the third year. The 4th year savings may actually be only a little over $1000 or there may be no savings at all, if the tuition rate increase continues to be less than 5% (say 3%).</p>
<p>This is a tough call because while I want to hold tuition and registraton fees constant, I do not want to end up paying more by putting out $8000 for the plan. Moreover, if sonny graduates in 7 semesters (with his AP credits earning him well over one semester’s credits), the real savings from this plan will be halved for the very year when the plan appears to make a difference.</p>
<p>Oh, well, it is somewhat complicated. I will try to talk to the bursar’s again. They were not that helpful the first time. Thank you for your input.</p>
<p>These were the CAS tuition and fees rates that we have paid for these last several years. This is per semester.</p>
<p>2008 17615.00 CAS tuition
1071.00 Reg. fee</p>
<p>2009 18293.00
1089.50</p>
<p>2010 18933.00
1108.00</p>
<p>We thought about doing the TSP, but I didn’t want to give NYU any more money than necessary…
This is only for tuition. The room rates go up and so do meal plans, if you opt to take them after freshman year.</p>
<p>I didn’t see the benefit of giving them 8000 dollars to save a few thousand.</p>
<p>If I did the TSP plan in 2008 when my D started, I would have paid a total of 11,8116.00 for tuiton and fees so far, without the TSP I will have spent 11,6224.00 according to my calculations.</p>
<p>You confirmed my tuition and registration fees for 2008, 2009, 2010 and the total numbers are close to what I have. For the first three years, with TSP (Tuition Stabilization Plan) the total tuition and reg fees are $118,116 and without TSP, the total tuition and reg fees are $116,219. </p>
<p>It looks like it is the fourth year where the savings come in when tuition and reg fees would be approx. $4000 more than the first year (2008). Then the savings comes out to be around $1800 for the last year, even with the additional $8000 paid into the plan calculated into the equation. Also, the tuition and reg rate increase was low for 2009, compared to historical rate increases between 4 1/2 to 5% each year (this according to the Bursar’s office in my phone call with an agent just today).</p>
<p>So, a brief summary is that I am likely to save around $1800 to 2000 over the 4 years by paying more upfront into TSP.</p>
<p>THANK YOU VERY MUCH for helping me out with the thinking process!</p>
<p>The room and meal plan rates will go up regardless. I know I have to budget more each year for these line items. There are no savings here for sure, only increases every year. But it looks like these may be $200-300 per year increase. So with the TSP, whatever savings I get can go towards the increases in room and meal plan rates. Easy come (no HARD TO COME, hehe, with all the calculations, ), easy go.</p>
<p>At least, I got you to help me with some of the details. :)</p>
<p>You got me to think about these details. Even though the bursar says the tuition goes up 4.5-5 %, in reality it has not.</p>
<p>The tuition increase from 2008 to 2009 was 1392.00 If it was 4-5% that would have been 1494.00-1868.00.
The increase from 2009 to 2010 was 1318.00. If it was 4-5% it would have been 1550.00-1938.00.</p>
<p>Maybe I’m missing something, but I see no savings.
so therefore the increase was more like 3.7% and 3.4% respectively.
Like anything else, NYU is a business and they are in the business of making money. They are not going to say that you will lose money by doing the TSP.</p>
<p>I was just putting 5% as a sure way to save with the Plan. However, even a lower
rate of increase does result in some slight savings THE LAST YEAR. As I wrote before,
with a minimum total $1700 savings even with the lower than 5% increases you have confirmed for the past few years. The difference lies in that last year. You will only see
loss from the TSP prior to the 4th year. And the savings can be more than $1700 if the rate goes up from where it has been. Now, if in the future, we are so lucky to have increases that are lower than the last 3 years, then everyone will be happy except those subscribing to the TSP.</p>
), easy go.</p>