We have had the discussion with our kid. That look you love the school and it is $15k more than your best merit schools. Just know that you will have $60k more in loans to pay when you’re out of school. We as your parents will support you by giving you a place to stay while you pay them off if needed b it the loans are on you. At the end of the day they are in a smart major. They should be able to handle the loans. I have always said that I am paying there first year of payments to remove me from the loan as a graduation gift. Then after that the risk is lower and I will always support my kids no matter what.
$60K in loans is another rent payment - it’s not nothing and you pay fees on top of interest so you need to take $62K or so to get $60K.
And the job market is dicey.
Not saying someone shouldn’t do it - that’s up to them - but I would not take $60K likely. It’s a lot.
That’s the problem with loans - they take away your flexibility to do what you want to do in life. They become your decision maker and I wish more would realize that up front because in the end, these students can probably do very well at a number of schools.
Unfortunately the $60k is going to look like nothing once they go to medical school. But we will cross the bridge when they get there. Sometimes you have to support your kids dreams.
As long as you don’t crush your retirement, I agree.
But in this case you said the student will be paying back the loan so my comment was meant toward them vs you.
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I totally get it - I know how much I want to support whatever school they love most.
If it were me, I’d think about a few considerations. First 60K in loans is going to be at least $80K in payments (conservatively) over the life of the loan. So it’s more than it seems. Second, kids do change career goals frequently in college, so I wouldn’t want to assume that the kid will for sure go to med school and be making the kind of money the easily pay back loans. Third, all advice I’ve heard for folks going to med school is to graduate undergrad with as little debt as possible. So that would all lead me to strongly urge them to choose the cheaper option.
I know how great VT is, though, so I totally understand a kid falling in love with it. It’s so hard when they feel strongly about one particular school!
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At 8% about $750 for 10 years and $90k total.i used $62k bcuz there are up front fees.
Hate to say it but our loans are going to be much higher more like $125k over 4 years but it is what it is. As much as I would like them to go to a cheaper school in the overall scheme of the loans she would be talking $10k difference with a school that might not even have the reputation she needs for medical school. Also with VT she is in the Honors college the other schools she was offered Honors but we were not impressed at all with it.
Vthokie1998 … YOU GO!!!
I agree! I am a CWRU1998 grad and accumulated too much debt. But, I’m 1000x better off today! Go with your gut! If you think higher education (in a meaningful field) is expensive… consider the alternative!
I get overly tired and exhausted with the ROI, NPV hurdle rate calculations!!! NONSENSE! If kiddo going to a GREAT SCHOOL in a GREAT FIELD… this is peanuts!!! No matter what!
When go off topic … ignore it. All too often I make a comment and folks start breaking out financial models on me… BS!!! Go for it!!!
Okay 30000 years ago I was in $100K of debt. Paid it down. Make way way way too much… more than any human is actually worth… and blessed. POINT BEING… go with YOUR GUT … kiddo not going for a wonky useless degree at hodunku!!!
GOD BLESS
PS … I’m passionate about this!!! VT and CWRU are very similar schools!
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That won’t be an issue 
there’s not favored schools to that level.
$125k is nuts in my opinion. What is the fallback if not med school ?
But you aren’t me so I wish your student the best of luck. I hope they find success.
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S25 just accepted VT Business school offer and paid the deposit. He is really excited about the school and so are we as parents. He got just 3k merit OOS, still on the pricey side for COA as OOS. Our cheapest instate option, UMass Amherst has put the kid in waitlist… it was his first choice. We have a different take on the financial aspect of college education. The reality is that unlike couple of decades ago, even state college are very costly now. As parents, we feel it is our responsibility to take care of kids till college and set them up for success instead of putting a huge load of student loan debt on their shoulders upon graduation. For many years we have worked hard and saved money to afford our kids college tuition if needed. Our view is that as parents we can afford to pay kids college education by dipping into our savings, cutting expenses and costly future travels and we are happy to do it. Yes, we will be putting some conditions and responsibility as part of funding their education but it is way better than getting loans at high interest rates. Bottomline, we are happy to make our kids find happiness and growth in their next phase of life. Good luck to all in the decision making process.
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When you commit, is there any email that comes? We didn’t get any receipt or any confirmation email that payment went through. Is there a way to check?
We feel the same way. Would love a confirmation email but dont have it. Take solace in the $400 that has left your bank account.
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To each their own, but I don’t really think an 18-year-old understands the impact of student loans. They have yet to live completely on their own and pay rent, car payment, insurance, Wi-Fi, etc., etc.
My D’s boyfriend has three years’ worth of student loans to take on when he graduates in May (the interest has already been accruing). He is graduating with a degree in a high-paying field and has a great job lined up with an impressive starting salary. He and my D want to get a modest studio apt together next fall where they will split the expenses. When he does the math (based on an avg. rent in our city), it leaves him with about $40 extra per month. He is stressed. He has also worked since he was 16 and has a healthy bank balance going in but doesn’t want to empty it.
These are things that an 18-year-old probably isn’t considering.
I don’t know what other schools your student got into so I can’t comment on reputation but if medical school is the ultimate goal, the things that are very important are maintaining a high GPA in competitive coursework, getting hours and experience in medical settings and MCAT scores. I don’t think a medical school will care about an undergrad honors program.
It’s also a possibility that a student may not get med school admission in the first round. I know several top undergrad students who were rejected when they applied the first year after graduating and had to take on debt doing master’s and other medical-related post grad programs until they were accepted to a med school. It’s a LONG, expensive road. Additionally, depending on the specialty, some doctors don’t make as high a salary as you would think and it takes a while to get to the high salaries. My older D has quite a few friends currently in their residency programs and they don’t make much.
Sorry - not trying to preach but I do think taking on student loans isn’t something to do lightly.
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Thank goodness my daughter got contacted by VT today and they actually offered her a very generous scholarship offer that we never imagined was available. It’s changed everything now and just solidified committing to VT.
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Thanks awesome! Congratulations!!
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What does your portal say - does it acknowledge payment? My son’s does not - and still has a statement to acknowledge that enrollment is not official until payment is processed. My wife called admissions and they told us to send screen shots of the payment from our bank and the portal.
That’s awesome! Was it one she applied for or just something that she qualified for that VT found on her behalf?
She was accepted into the Honors College and awarded one of their Honors college scholarships.
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We have the same message. Will send screen shots to the admission. Thank you for that tip!
We got a message back from admissions apologizing for the incorrect information given over the phone and that all is well. Great to hear - but it would be good if they would just email confirmation. I’m sure you’re all set too.