Ivy undergrad education worth debt?

afadad
Wed, 18 Feb 2009 12:40:53 +0000

whatever4; excellent post. One thing that she be considered is WHO IS THE ONE GOING INTO DEBT? My comments are about an individual paying their own way through school. Or at least, the amount of debt THEY will end up with at the end of their education and when they start earning money.

By all means, if you (The student) has parents that want to pay your entire education, then go for it. They are adults. NOT ONE PERSON HERE or anywhere else is going to tell them what is or isn’t financially smart or responsible. They already believe what they believe and that is very unlikely to change. I suggest you take advantage of it. But if you; who doesn’t have a lot of experience with finances and debt; (The student) is the one who will have the debt; then consider it very seriously.

With my kids, I was willing; based on my income and investments; to pay UP TO FULL PRICE of our in state University. Without 1 penny of financial aid, the most it would cost for in state university would be about $15,000. That includes tuition, books, dorm, food, etc… That is the AMOUNT I promised to both my kids. UP TO THAT MUCH. That didn’t mean they had to go to our state school. BUT; if they wanted to go to Yale; got accepted; total cost was $50,000; they received $30,000 in scholarships, private, grants, etc… (Free Money). That leaves them a bill of $20,000. I will give them up to $15,000. That leaves them a debt of $5000 a year; plus any spending money or other expenses. Chances are, approximately an $8500 a year debt for them. Now; that’s a $34,000 debt after 4 years. That’s their choice. On the other hand; if they found a school where they could get a 100% full ride; Which BOTH my kids did; then we take care of all their spending money. We continue to pay their cell phone, car insurance, gas money, visiting home, tickets, etc… We also give them about $200-$300 a month for spending money. Again; their choice. They chose this. They both are going to excellent schools. They both graduate 100% debt free. I and my wife save about $7,000 a year for the first three years for my daughter; $14,000 this year for both my kids; and $7000 a year for the next 3 years with just my son. Then, if they want to go to graduate school, they will be debt free going into it. If they can get a great loan, fellowship, etc…; then great. If not, I will LOAN them the money at 0% interest. Sorry, but our family doesn’t give our kids things other than traditional birthday, christmas, etc… gifts. My daughter will pay me for the car I let her have; if she wants to keep it. (She knows I’ll only charge her a couple hundred dollars; but it’s the point that SHE BOUGHT it and she wasn’t GIVEN ANYTHING. It’s just the way our family has been for many generations. You appreciate things more when you have to pay and work for it. They worked through college with scholarships. That’s why in high school, I only let them have summer jobs. Their job during the school year was to get straight “A” if possible and get scholarships. They did and they appreciate their education and that they are debt free.