cost of college

Jim Richardson said:
Full dislosure: I'm not just a bike guy, I am also a finance guy. I see way too many people paying for kids college, but not adequately funding retirement. In the grand scheme, college funding occurs only after retirement funding. The parents tell me they will fund retirement after paying for school, basically saving their entire paychecks from age 55 to 65. But somehow before age 65 they get downsized out of a job and out of a secure retirement.

65.9% of high school students go on to college. 55% of those college students (or 36.25% of high school grads) graduate from college within six years of starting. That means you should figure on average five years of tuition for four years of school. This would not be so bad if our economy valued college education, but it doesn't. A person with three years of college does not earn 75% of what a college grad earns. Our economy values the diploma, not the education. Unless the student will graduate and then use that degree in a closely related field, college may be a bad choice. Financially, it sets back the student, and also gives them a later start towards earning and saving. It can also deplete parents assets.

This is just a bad investment decision if parents have enough other funds. But if you are paying for college and starving your retirement you need to reassess. While 36.25% of high school graduates will finish a four-year degree in six years, and some of them will even get a job related to their degree, we parents have a much higher than 36.25% probability of being old and not getting a paycheck. I would rather saddle my kids with the finite cost of student loans (not co-signed) and working while at school than to saddle them with them the open-ended cost of supporting elderly parents who forgot to cover their elder years.
Click to expand...

After being in the corporate grind for over 20yrs, including my share of working with HR in interviewing/hiring candidates, I can tell you that its totally the fact that you have a degree on your resume vs. what you learned in school. Your experience is what counts, however you need that degree to even be considered. I spent the first part of my career actually working in my field of study, and even most of what I learned there was through experience. What I do now is not something that you can learn in school (Project Management). Yea, I know that you can get a PMP (have one), but that doesn’t teach you how to do the job, just gives you some tools. The advantage that college can give, in addition to your sheep skin, is work-study. Go to a school with a strong work-study/career placement department. It’s hard to come out of school and get a job cold, having some experience through work-study, or an internship, is huge.

And most of our savings goes to retirement, some to college. I’d like to fund my kids education to give them greatest advantage possible, but the thought of not being able to retire has me paranoid, so we’ve maxed out our 401k’s and manage our IRA’s and spending carefully.
 
Jim Richardson said:
Full dislosure: I'm not just a bike guy, I am also a finance guy. I see way too many people paying for kids college, but not adequately funding retirement. In the grand scheme, college funding occurs only after retirement funding. The parents tell me they will fund retirement after paying for school, basically saving their entire paychecks from age 55 to 65. But somehow before age 65 they get downsized out of a job and out of a secure retirement.

65.9% of high school students go on to college. 55% of those college students (or 36.25% of high school grads) graduate from college within six years of starting. That means you should figure on average five years of tuition for four years of school. This would not be so bad if our economy valued college education, but it doesn't. A person with three years of college does not earn 75% of what a college grad earns. Our economy values the diploma, not the education. Unless the student will graduate and then use that degree in a closely related field, college may be a bad choice. Financially, it sets back the student, and also gives them a later start towards earning and saving. It can also deplete parents assets.

This is just a bad investment decision if parents have enough other funds. But if you are paying for college and starving your retirement you need to reassess. While 36.25% of high school graduates will finish a four-year degree in six years, and some of them will even get a job related to their degree, we parents have a much higher than 36.25% probability of being old and not getting a paycheck. I would rather saddle my kids with the finite cost of student loans (not co-signed) and working while at school than to saddle them with them the open-ended cost of supporting elderly parents who forgot to cover their elder years.
Click to expand...

Great advice. I don't get the concept of putting off/jeopardizing retirement for the sake of kids college. They always have options - loans, etc. You don't when it comes to retirement.
 
rick81721 said:
Great advice. I don't get the concept of putting off/jeopardizing retirement for the sake of kids college. They always have options - loans, etc. You don't when it comes to retirement.
Click to expand...
Agreed and also a Financial Consultant. Find what you can for college from early age and do what you can.
 
qclabrat said:
Haha, MrsQ just mentioned it this past weekend. But you know anyone's chances of being accepted will be crazy low. Already told the kids to not even bother....
Click to expand...
Right now they accept 93 students per year based on 10,000 applicants. Student acceptance will remain the same, applicants may rise.
 
Haha, Back to this...
DD decided against architecture and we're doing engineering (oh boy...). Since Engineering is now in the mix, we are pushing hard for Rutgers. But of course it's low on her list... But holy crap Rutgers requirements for engineering is no joke, no longer a safe school.

Early action apps are due on Nov 1st .I've given up harping on early apps, I've instead written a poster in the kitchen as a reminder. I'm done, I point there instead of speaking.

Other schools high on the list are RPI and Maryland. But RPI is almost 60k for tuition. What are your experiences with the school's scholarships? Did you get more or less than expected? My friend's son got into GW as early decision and received zero school help.
 
Good luck with that. My daughter could have gone to Rutgers almost free for engineering but the appeal of Boston was too great. Now that she is at Northeastern, I'm really sold on the Co-op model. As a Sophomore she is already applying for her first jobs. If you can't sell Rutgers, consider Drexel or Stevens, my daughter got good scholarship offers from both. I don't know if there are reliable stats for ED, but I got the same feeling that the scholarship dollars were less if you went ED.
 
qclabrat said:
Haha, Back to this...
DD decided against architecture and we're doing engineering (oh boy...). Since Engineering is now in the mix, we are pushing hard for Rutgers. But of course it's low on her list... But holy crap Rutgers requirements for engineering is no joke, no longer a safe school.

Early action apps are due on Nov 1st .I've given up harping on early apps, I've instead written a poster in the kitchen as a reminder. I'm done, I point there instead of speaking.

Other schools high on the list are RPI and Maryland. But RPI is almost 60k for tuition. What are your experiences with the school's scholarships? Did you get more or less than expected? My friend's son got into GW as early decision and received zero school help.
Click to expand...

When I was applying to schools 10 years ago, the traditional engineering schools in the north east, especially Stevens and RPI we’re giving huge scholarships to women interested in STEM. Don’t mark Princeton off the list either, worth throwing her name in the hat. If she is accepted they are very aggressive about making it “work” even if you make too much money to qualify for fafsa. Lots of middle and upper middle class kids are getting good “need” based packages from PU. Rutgers education is a great deal as well, especially if she can get into one of the honors colleges, those kids are the cream of the crop for jobs post grad.
 
M3Tim said:
Good luck with that. My daughter could have gone to Rutgers almost free for engineering but the appeal of Boston was too great. Now that she is at Northeastern, I'm really sold on the Co-op model. As a Sophomore she is already applying for her first jobs. If you can't sell Rutgers, consider Drexel or Stevens, my daughter got good scholarship offers from both. I don't know if there are reliable stats for ED, but I got the same feeling that the scholarship dollars were less if you went ED.
Click to expand...
Your daughter must have been a great student in HS, NE is a wonderful school and I completely bought into their COoP program as well. We visited there last year but my DD did not like being in a large city.
 
qclabrat said:
Your daughter must have been a great student in HS, NE is a wonderful school and I completely bought into their COoP program as well. We visited there last year but my DD did not like being in a large city.
Click to expand...
DD=Dunkin Donuts?
 
brendini said:
When I was applying to schools 10 years ago, the traditional engineering schools in the north east, especially Stevens and RPI we’re giving huge scholarships to women interested in STEM. Don’t mark Princeton off the list either, worth throwing her name in the hat. If she is accepted they are very aggressive about making it “work” even if you make too much money to qualify for fafsa. Lots of middle and upper middle class kids are getting good “need” based packages from PU. Rutgers education is a great deal as well, especially if she can get into one of the honors colleges, those kids are the cream of the crop for jobs post grad.
Click to expand...
Haha, 15 yrs ago when we went to our financial consultant, we said we wanted to save for college to anywhere our kids could get into to. So he picked Princeton and told us to save $1M for our two kids. Now PU not in the cards but I'm not ready to give my savings for any 50k per year school. I personally can't see spending that much unless it's a top choice school.
 
My wife and I both went to state schools cause our parents couldn't afford otherwise. But MrsQ was ivy bound though with limited scholarships. So we wanted to be prepared as needed.
 
qclabrat said:
Haha, Back to this...
DD decided against architecture and we're doing engineering (oh boy...). Since Engineering is now in the mix, we are pushing hard for Rutgers. But of course it's low on her list... But holy crap Rutgers requirements for engineering is no joke, no longer a safe school.

Early action apps are due on Nov 1st .I've given up harping on early apps, I've instead written a poster in the kitchen as a reminder. I'm done, I point there instead of speaking.

Other schools high on the list are RPI and Maryland. But RPI is almost 60k for tuition. What are your experiences with the school's scholarships? Did you get more or less than expected? My friend's son got into GW as early decision and received zero school help.
Click to expand...

My Niece received a 50% scholarship for her freshman year at RPI - she had about $50,000 saved up in a 529, and no other savings. The school expects that to be used in the first 1.5 years, then reapply. She is biomed eng, with no interest in the MD track. Think she likes prosthetic devices with neurological interfaces. So she is at the right school, even tho the big nut. While not the biggest fan of the school's president, she is a serious role model for everyone.

One of the things about saving for college is they expect you to spend it.
 
RPI is a good school, but as you noticed expensive, not sure how they are with financial aid, i never got around to applying, got into Stevens ED1 before RPI was open for applications. I also got a full ride offer from NJIT (one of the best state engineering schools in NJ tbh) but i understand if she doesnt want to be in Newark, still worth a look, and they do (or did back in 2007/2008) a rolling admissions, if you go to a visit day you can apply in person and get an answer day of, they sent me right up to the honors college for financial aid assessment when they say my information.

Applying ED is in some schools case a binding decision, you are basically saying if you accept me i WILL go to your school, as such they tend to offer less aid to those who apply early (at least thats how it was when i applied).
 
fidodie said:
My Niece received a 50% scholarship for her freshman year at RPI - she had about $50,000 saved up in a 529, and no other savings. The school expects that to be used in the first 1.5 years, then reapply. She is biomed eng, with no interest in the MD track. Think she likes prosthetic devices with neurological interfaces. So she is at the right school, even tho the big nut. While not the biggest fan of the school's president, she is a serious role model for everyone.

One of the things about saving for college is they expect you to spend it.
Click to expand...
Yeah, that's why 529 can be a bit of a burden when it comes time to use it. Have more than a few Gs and it works against you. Your niece sounds a lot like my younger, loves science but no interest in medicine.
 
As someone who graduated debt free 3 years ago this thread hurts, going back to school for a more marketable degree has me feeling guilty about my son's chances. I wish I went to trade school.
 
You must log in or register to reply here.
Back
Top Bottom