@thumper1, that’s right, if it’s the case of NO debt. If the family have enough hard-working savings, will Ivy be worth of paying 4 years of full price $250K to go?
@jhotoh: Depends on alternatives, goals, just how much that $250K would hurt (to a family with $10M in savings and no more kids, it would hurt a lot less than to a family with $1M in savings and 3 more kids), etc.
What does “worth” mean, anyway? Major and skills have as big or a bigger effect on earnings than brand name. And in some fields (like accounting and engineering), the name just doesn’t matter that much (in others, it matters far more).
This depends on whether you view college as a consumption good or an investment. Obviously, as a consumption good, the family with $10M can spend more on college. Viewed from a purely investment perspective, the rate of the return for an Ivy is the same whether the family has $1M or $10M in the bank.
@roethlisburger: For people who live in the real world, ROI can’t be the only thing that matters, especially when that ROI is projected and could be wrong.
Few companies are willing to invest in a project with a tremendous projected ROI if doing so means a cash flow crunch that throws the company in to bankruptcy at a slight economic downturn.
Moderator’s Note: I think the OP’s question has been answered and we’re heading around the bend again about ROI for colleges. If the OP has more questions s/he can start a new thread.