VU students-Would you full-pay 30% of your lifetime assets for VU vs $10K/yr in-state

Colleges and Universities A-Z Vanderbilt University
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<p>Our HS junior son has Vandy-level stats and wants a university with a big-time marching band in which he can play snare. Vandy would be an ideal choice, but our Estimated Family Contribution is $60,000 a year. The family has a moderate income, but more assets - some in real estate with which we don't wish to part. Paying full cost at Vandy would use up 30% of those assets. Our son could go to Georgia Tech or the U. of Georgia for about $10,000 a year.</p>

<p>Would you consider Vandy to be worth an additional $200,000 (part of which could be used to send him to grad school)? Why or why not?</p>

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<p>gadad: One solution to this problem that so many families with wonderful students face is to apply to the merit programs at Vanderbilt, Wash U, Emory and other schools and see what happens. Also a few of the Ivies have generous caps on income assessment that could possibly work in your favor. Our sons also had fantastic honors invitations to UVA and Wm and Mary, arguably wonderful colleges with great peer groups to grow up with.
Second son won a merit option to Vanderbilt to his absolute shock and we sent first son to Duke without merit dollars. You don’t know till you try. He also lives btw with a couple of very happy members of the Vandy Marching Band. My Dad is a graduate of Georgia Tech and from what I hear Georgia Honors and Georgia Tech have great programs.
Re was a full payout worth it? I would hesitate to repeat since the recession. I also would look hard at your son’s vocational insight at this point in life. I realize he may not have a clue yet. However many schools of law and business and even some schools of medicine do access parental income till your son or daughter is 28…we had no idea this was true and might have made a different decision if we had been looking at the long view.
On the other hand, ardent students of engineering or science may not only find good employment opportunities, students in science grad programs can also find stipends with excellent performances in undergrad school. You should be pricing the graduate school options in Georgia and looking at the fine print on when your son or daughter is emancipated financially. We didn’t do this and wish we had.<br>
Do your financial homework for the long run in education. It isn’t easy these days to pay back loans to grad school like it was in our era. We borrowed 10 grand for Vandy Law and paid it back over 10 years…this is not enough for a semester now…maybe two classes at best.</p>

<p>Both of our sons were very happy with their match colleges and were ready to go to their state colleges with happy attitudes. It is a good lesson in life to have to realize financial limitations. Second son turned down admissions to full price private schools where he was admitted because his parents decided it was not possible to go that route anymore…but then he came of age in high school in the fall of the crash in 08. Reality thinking is the name of the game.</p>

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<p>^I think Faline2 gave an excellent answer to your question, detailing many facets of your son’s impending decision.</p>

<p>I felt the need, financially, to make it very clear to my kids (by your son’s age) that, in the end, they were going to have to ultimately choose one of the “cheapest” schools on their lists after all financial aid decisions came in. And I clarified that "one of the cheapest” means one of the schools with the “lowest Cost of Attendance (COA).” </p>

<p>For instance, one of my sons is attending a very expensive, private university for roughly the same amount of money it would have cost to attend our local state university. In fact, he ultimately had a choice between 3 expensive, private universities in the end. All would have had a COA less than, equal to, or insignificantly, slightly more than our local state school, because of hefty merit scholarships.</p>

<p>So, I have said to my kids (because money is an issue here), “Apply wherever you like, but in the end, you’ll have to choose one of the schools that offers you one of the best COAs.” That led them to apply only to schools that offer hefty merit scholarships (Vandy is one of them), plus (if they want) one or two dream schools that don’t give merit aid (like the ivies, Stanford, MIT, etc) but that are known for their generous need-based aid. In other words, “In the end, we have to be able to afford it, and your decision will, unfortunately, have to take money into account.”</p>

<p>I heard very early in the college search process that one of the best things you can do for your kids (and family) is openly discuss money from the start. That way, the kids know there are financial limits. They know their college choice will ultimately be tied to cost. Their expectations are kept in check. </p>

<p>State schools often provide much less merit aid than private schools. If your son is the kind of student who might earn merit aid, then he would be wise to apply to schools like Vanderbilt as well as the state schools he likes. Vandy could end up being cheaper. You will not know until March or April of his senior year how costs will play out.</p>

<p>My opinion: Vanderbilt would NOT be worth an additional $200,000 over the state schools you mentioned. Why not? Well, lots of reasons. The cost of grad school. The cost to set up a home after college. The day to day stress that financial strain can bring into people’s lives. Strain that would/could last for years or decades. The fun, or study abroad, or other educational opportunities and experiences that could be purchased with that amount of money if you weren’t throwing it into a “similar enough” education at an expensive private versus a very good public. The reality of unexpected costs in the future: severe illness, forced early retirements, layoffs, unforeseen catastrophes, things that happen in families that can unexpectedly bleed resources. It’s just not worth what would amount to a second mortgage if you have a choice to do otherwise.</p>

<p>But that’s my opinion. Others definitely feel differently.</p>

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<p>I agree with both posts above. My D is a senior at Vandy, and it costs less for us per year than we pay for our son, who attends a state school with a merit scholarship. The bottom line price is very important to us, and the choices for both of our children were driven by the cost to us.</p>

<p>I do think Vandy is an excellent school, and my D has really taken full advantage of the many opportunities available to students. I am a bit disappointed that S doesn’t have the same type of opportunity, but he will survive … and since he will be attending grad school, he will be thankful that he doesn’t have a mountain of debt when all is said and done.</p>

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<p>Reading this thread, it’s good to see that I’m not alone. These are tough calls to make, and I get a little angry because I feel like the system is set up to punish thrifty parents. There are days I regret saving money.</p>

<p>Do have your son look into ROTC. At Vandy, and many other schools, it is a great program. ROTC does not cover room and board, but, if your kid is a Vandy ROTC, Vandy kicks in $6K toward room and board.</p>

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<p>I think I have read in previous threads that there is a small stipend or scholarship for marching band participation. I can’t remember how much.</p>

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<p>Vanderbilt is often very generous with grants. Just because your EFC is $60k don’t think that there will not be a grant offered. You will only find out what grants and or scholarships are offered after acceptance by the college. When looking for schools also consider the size of the schools endowment as these schools are capable of giving more funds. It is sad that finances play such a big part in your childs choice, but for the vast majority of us this is how it is. Best of Luck!</p>

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<p>I’m in the band. The scholarship is more of a nice gift at the end of the season. It was $350 for people who have been in the band for one or two years and a little more for people who have been in it longer. </p>

<p>Band is fun, though!</p>

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<p>Thanks for the great feedback! The COA determinant is a great approach. Our situation is made more difficult by virtue of the fact that our financial situation changed recently. With similar stats, the 11th grader’s older sisters both got to attend an Ivy for the same cost that the in-state privates would cost him. Tough call.</p>

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<p>^^^ (I mean “in-state publics”)</p>

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<p>Go with Vanderbilt,but I’m extremely biased. Don’t listen to me xD</p>

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<p>I’m a freshman here at Vanderbilt and my parents had about the same EFC as you mentioned (also because of lots of assets). In the end, I didn’t get a cent of need-based aid from anywhere, so I was choosing between places that gave me merit aid (i.e. Emory and Vandy). The full-scholarship is definitely a big pull, for sure. However, if I hadn’t gotten the merit packages, I would definitely be at state school - my parents made it clear that they’re not giving up tens of thousands of dollars a year (there was an analogy to buying a new Lexus and driving it off a cliff each year somewhere in there) so I can attend somewhere “better.” Plus, my state school of choice was UIUC (EE) so I guess I wouldn’t be at a bad school anyways =).</p>

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<p>My S went to UPenn. It cost me a lot less than it would have at a local public school.</p>

<p>I would have to disagree with the parent who said the ‘financial stress that can last for decades’ … I do not believe that you would accumulate that much debt in college unless you are a millionaire (If you are a millionair cost would not be a matter anyway). </p>

<p>If you go to a top school and do reasonably well, you get a first look at many of life’s greatest opportunities. If you fast forward to 15-20 years, the money you spent on college would not be much in the overall scheme of things.</p>

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<p>^That was me that said the financial stress could last for decades. The additional $200,000 the OP mentioned for Vandy would take many families decades to pay off. Maybe I’m the only one – it would take me decades. In fact, the higher end of the 15-20 years you mentioned IS “decades.” Two to be exact. :)</p>

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<p>what if we’re completely content with paying $50 a month for the next 30 years?</p>

<p>i really dont understand what the big deal is.</p>

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<p>^Oh, it’s no big deal if that sort of thing doesn’t stress you. Some people are stressed by $50 a month for the next 30 years. It’s not interest-free, after all. But, you’re right, college282. It’s not stressful … if it’s not stressful! :)</p>

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<p>^But, as an aside, $50 a month for 30 years would not begin to pay off the extra $200 grand the OP was asking about. I haven’t done the math, but I’m pretty sure $50 a month for 30 years wouldn’t even keep up with the interest on the loan. Really. After 30 years, I think you’d still owe the $200,000, and then some! That would suck, imo.</p>

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<p>yeah i agree.</p>

<p>another question, i see numbers on the average cumulative debt upon graduation and all these figures are under 40k. i think vandy is even something like $25,000. </p>

<p>where are they getting these numbers?!'</p>

<p>The Princeton Review Book has a the “average cumulative indebtedness” at $19,563.</p>

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<p>^I know; I’ve seen that too. My college kids have accumulated/will accumulate the averages, too, as it turns out. </p>

<p>Maybe it’s because the “standard” unsubsidized federal loans that so many people qualify for add up to around $27,000, and that debt is entirely the students’ (they sign for it alone, assuming they’re old enough).</p>

<p>The REST of the money (or debt) comes from the parents. In my current college kid’s case, he’s going to have taken on the max unsubsidized Stafford loans. Off-hand, I think that’s a total of $27,000. He’s got massive scholarships (because that’s the method my family uses for choosing a college), and I’m paying the rest that’s not covered. So, in the end, he will graduate with $27,000 in debt (the national average-ish), and I will have increased debt of my own that is not accounted for in those figures. Know what I mean? The national averages refer to the student – not the family?</p>

<p>That’s a guess…</p>

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<p>Hi gadad,</p>

<p>1) Your son has Vanderbilt-level stats, which means I assume he would qualify for The University of Georgia’s Honors Program. </p>

<p>2) The students who entered the Honors Program this past Fall Semester have an average Reading + Math SAT score of 1471, with the 25%-75% range equal to 1440-1490. </p>

<p>3) The students who entered Vanderbilt this past Fall Semester have an average Reading + Math SAT score of about 1445, with the 25%-75% range equal to 1360-1530.</p>

<p>4) You indicate that you will have to pay an additional $200,000 for Vanderbilt versus The University of Georgia.</p>

<p>5) What is your current marginal income tax rate across Federal, State, etc.? Let’s say it is 33%. That means that, to replace the $200,000, you are going to have to earn about $300,000 pre-tax.</p>

<p>6) What kind of a financial burden is an extra $300,000 on the rest of your life? SimpleLife is correct. Think of it as purchasing a second home, and financing it with a 30-year fixed-rate mortgage. Except that the interest payments will not be tax-deductible, and you will not have to pay property taxes and maintenance. The current 30-year rate is 5.05%. That corresponds to a monthly payment of $1,620. </p>

<p>6) Is Vanderbilt worth $300,000 pre-tax over The University of Georgia’s Honors Program? I know that SAT scores are not everything, but those are really bright kids in The University of Georgia’s Honors Program! Also, I’ve heard great things about that program. I find it difficult to believe that Vanderbilt would provide that much incremental value. In my opinion, SimpleLife said it best: “It’s just not worth what would amount to a second mortgage if you have a choice to do otherwise.”</p>

<p>7) I have also heard great things about Georgia Tech.</p>