We hired a young graduate of Carnegie Mellon last year that told me he had over $150k in undergraduate student loans his parents co-signed for him, under the same premise as your parents – namely they had the money for college, but the parents believed strongly their kid should pay his own way and if it was an expensive school it was his decision. So he is working off the loans. Given his career trajectory I would think he will have them paid off in a 3-5 years. Its an additional monthly nut for him I am sure, but he is happy and strongly believes the education he received was worth the debt he is carrying. He is a responsible young man, so I am sure his parents never worried he would stiff them with the debt. So, its really your personal decision to invest in yourself. Depending on what you believe you will be doing when you are done with your education, then investing $150k or more in your undergraduate degree is a personal decision, and a family risk, but at least a risk you and your parents are taking with your eyes open.
^^
To me personally, 150K is way too much for an undergaduate student loan. I’m glad it’s working out for him thoough, so far.
^^ Way way WAY too much.
I guess it depends on the young man’s starting salary. $40k-ouch! $70k-less painful.
Reminds me of a thread on CC a couple of years ago. The student was appealing his financial aid award from Yale (zero financial aid). His Rationale was that his parents had bought a vacation home the year before and now could not afford to pay his tuition. at Yale.
@TomSrOfBoston – reminds me of a financial aid seminar I went to at a local LAC. They meet 100% of need, and said applicants are welcome to appeal awards and encouraged to disclose special circumstances, but that the school did not consider “we don’t want to sell the vacation home on the cape that’s been in the family for generations” a valid special circumstance. The FA rep said we would be surprised just how many people think “I don’t want to sell or borrow against my vacation home” is valid need.
N.B. I don’t think that’s what’s happening here, just that I was reminded of that very funny moment.
Not an entirely unique situation, but I do extend empathy to his family. I have more than a few friends in NYC, who are stretched thin, despite on paper looking like they are doing relatively well (300-500K salary) and equity in a coop. But, after NYC private school, a mortgage that in many instances, is at least 5K, and more than one child in school, well, sometimes the math does not add up in a practical sense.
Speaking personally, we are paying full retail at an Ivy and OOS UC, and that is in the low six-figures annually. Writing those checks never become easier…
What about third party scholarships? Is it realistic to bank on getting 20k or so in scholarships a year?
@ccmember11598 : What about third party scholarships? Is it realistic to bank on getting 20k or so in scholarships a year?
That is very unrealistic an amount to count on for outside scholarships. Many of which are for freshman year only.
Outside scholarships also typically go to reduce institutional grants first. So say you won $2000 in scholarships, you might see zero net gain.
In general, outside scholarships are for one year (not renewable).
Agreed, @boolaHI . We’re in the don’t-qualify-for-much-need-aid income category ourselves, and we’re not driving expensive cars or taking vacations. It’s expected that we’ll be able to pay tuition. I do empathize.