I know some folks might not like this question. Please know that I understand that cost is only one factor in the college decision. As part of my job I am paid to predict what is going to happen in the future. I use historical data and other factors to do this. I do like doing ‘What ifs’. I find thinking about all the possibilities best prepares you.
Let’s say your child has a choice. A top 20 US news ranked school where the COA is $38K per year vs a top 65-120 US news ranked school where the COA is $17K per year. Both schools meet the needs of the student. Student could see himself at either school. Basically taking fit out of the question. You can’t take the reputations of the schools out of the question though.
I am interested in your decision based on two difference circumstances.
First, your family has the funds to pay $38K per year without making huge sacrifices. You might need to cut back some here or there, but your overall life won’t be greatly affected. Think I will have to go to FL this year instead of Europe. If kid picks $17K per year school then off to Europe we go for vacay.
Second, your family has some funds set aside and the student will probably take out $2-4K a year in loans for the $17K school. Life overall won’t be greatly affected if child picks $17K school. If child picks $38K school you would max out loans wherever you could find them. Parents might be a co-signer on some of the loans. Parents might use some funds from emergency funds or retirement funds telling the child that he must pay parents back in addition to any formal loans. Parents would also probably cut back on some things.
Does being in the different circumstances change the decision?
If a child has to borrow $2-4k for a $17k school, the parent contribution is $13-15k (assuming no grants). So the net cost of the $38k school is $23-25k/year. A ~$100k+ PLUS loan will cost much more with interest. So your question isn’t about cost, it’s about debt. Are you contemplating a $100k PLUS loan for an undergrad degree? I wouldn’t advise it.
@gpo613 It isn’t as simple as “ranking/cost vs. ranking/cost”
What type of payback does the major have? In simple terms - If it is a social work degree, take the low cost one - will never earn back the difference. If it is a high paying engineering degree, it might make a difference.
What is career development center like? While one may be ranked higher than the other, does one have higher placement? Does either have placement in a geographical location that is more desirable?
“Does being in the different circumstances change the decision?”
Of course. For me, categorical NO with the scenario 2, especially if the undergrad degree is not terminal. As for the scenario 1, it depends on which school in the USNWR top 20.
A family friend of ours did just that. Sent their daughter to Cornell with the COA of around $40,000 a year by selling some of their real estate investment. I wouldn’t have, but I’m not them so no judgment of them coming from me.
I agree with both @austinmshauri and @eb23282. In the second case, if the issue is to go to a “top 100” school for $17k, and if you can’t afford to pay any more than $17k without taking on debt, there is no way that I would take on debt to pay for a higher ranked university.
I have a daughter who very recently graduated from university. Finding a job in her field that pays the rent and puts food on the table is hard enough. If she had any loans then we the parents would be paying them off.
If the parents can pay the full price of the $38k university without any loans and without any hardship, then the question becomes much more difficult. I see this as pretty much a personal choice, and my personal decision if this was our situation might depend upon the specific schools and major.
First off, rankings mean very little to prospective employers. Look at job postings. They only distinction employers make is between a bachelors and a masters degree. Second, it depends on the amount of debt. If the student has to co-sign loans to afford tuition, then it’s a clear indicator that the parents can’t afford the school in the first place. Allowing your child to co-sign large amounts of debt for a bachelors degree is financially irresponsible, especially when the student decides to get married and start a family. This is the time when Mom and Dad should exercise their veto power and say no. When deciding colleges, the only hard fact there is in this decision is money. Everything else subjective.
The 2 biggest flaws in college decisions is (1) relying on rankings and (2) assuming that there’s a correlation between selectivity and educational quality. Rankings are nothing more than a subjective opinion published in the media. Even worse, what are the actual criteria they use to come up with this list? You’ll find that it has very little to do with educational quality. Selectivity is simply nothing more than artificial supply and demand.