Paying for College

[moneybags]

Hypothetical situation/question:

DD can go to Harvard or a strong liberal arts college, all expenses paid by us (mom, dad, DD), assuming no loans needed or DD can go to a weaker liberal arts college or state school on a scholarship, minimal expenses paid by us.

Do you think there is value in a better school? I am so frugal, I can't really see paying the big bucks for college even if I can afford it. On the other hand, I don't want to cheap-out on something this important.

[Debt Vigilante]

Unless you are talking about a big time Ivy League school, I dont think there is much difference. There are A LOT of good state schools that have excellent track records. I guess is also depends on what DD wants to be when she grows up... if DD wants to work in robotics and gets into MIT thats probably a good thing, if DD wants to be a teacher and gets into Yale, thats totally unnecessary.

As far as going into business or something most large state school have excellent programs and reputations for majors like that, and unless DD is going to work as a wall street banker, no need for Harvard (or the like) either.

[disneysteve]

I don't think you can judge a college based on cost alone. You need to look at the educational aspects first and foremost. How strong is their program in the child's intended major? How are the classroom and lab facilities? What is the background of the faculty?

I also put a lot of weight on the non-educational factors. How far from home? How big of a student body? How big of a campus? What is the general feel of the place? Is it a lot of high stress over achievers or is it a bit more relaxed? What types of extracurricular activities do they offer? What social and cultural things go on on campus and in the town? Will your kid fit in with the student body?

College is about a lot more than getting a diploma. There are many life lessons to learn during those 4 years. You need to be in the right place for you. That might turn out to be a big state school. It might turn out to be a smaller private school. It all depends on the kid.

[jpg7n16]

I think there is some value to a better school.

But what you need to do is determine if the marginal cost of that school is a good value compared to the marginal benefit.

1st decide what benefit you would like the student to acheive: I mean - are they going to school to learn more? or to ultimately earn more?

2nd decide if the school is geared towards what the student wants to do. Harvard would not be the best choice for an aspiring engineer - but MIT would be a very good choice. But everyone's heard of Harvard, so for an aspiring businessman/woman - a degree from Harvard would increase job security and marketability.

3rd determine if those benefits outweigh the costs. What if there is a reputable state school that could get good job offers at comparable pay, but for 1/2 the cost?? Then Harvard is no longer as attractive on a cost/benefit analysis. But if such a college does not exist in your area, Harvard becomes a more attractive option

[MonkeyMama]

Agreed with what else was said.

I'd say it's probably best to start with what your DD's goals are, and work backwards from there. What are the best schools and programs for your DD's aspirations? Where do employers recruit from? Talk to mentors and get their opinion on how much difference a Harvard education will make. Will her future earnings potential make up for the cost?

This should also depend on how set she is on her career aspirations. IT is kind of hard to say at 18. I know SO MANY very bright people who went to Ivy League and/or prestigous schools for liberal arts degrees (most of the people I went to high school with), who ended up going back to school to get "real degrees." I found it ironic that they all ended up going to State schools for advanced degrees (when they had turned up their noses at the idea at ages 17/18). It just always struck me as very backwards. But by the time they figured out what they REALLY Wanted to do, the money was gone.

I can think of many examples where some of the State schools here have way more "prestigous" programs than the few private schools around - in many fields of study. The area I live in is public school intense though.

[disneysteve]

Also, costs can be deceiving. The "cheaper" state school can sometimes turn out to be more costly in the long run because the private school may offer a more attractive aid package that brings the actual out of pocket cost down considerably.

[ThriftoRama]

Value in Harvard, Yale, Stanford, CMU, Brown, Yes. Value in most other expensive liberal arts colleges, not so much. Their name is really only respected in the region or city where they are located, which does you no good unless you plan to stay near there forever.

[MonkeyMama]

Stanford - no - not for every field of study.

Actually, I forgot Stanford is in my backyard. I was thinking Ivy League/East Coast. Now that I can think of an Ivy League school in my backyard? I can confidently say that for some career choices, an Ivy League school like Stanford, is not the best choice, for many career paths.

[msencenb]

Stanford - no - not for every field of study.

Actually, I forgot Stanford is in my backyard. I was thinking Ivy League/East Coast. Now that I can think of an Ivy League school in my backyard? I can confidently say that for some career choices, an Ivy League school like Stanford, is not the best choice, for many career paths.

I'm a current Stanford student and feel the need to at least stick up for my school . What fields of study is Stanford not good for?

I think one of the best things about Stanford are the incredible amount of networking opportunities (not to mention I love the quirky place). I could see a valid argument being made that some fields of study just aren't practical for the price of Stanford... things like Engineering however I think have excellent programs.

Just my 2 cents

[snafu]

It would be interesting to do as cost benefit analysis of Ivy League, Private and State Schools based on faculty and career goals. Most HR managers in large organizations don't differentiate between schools for applicants with 4 years experience unless the job description is particularly targeted to networks.

[cschin4]

I used to think pricey colleges were a waste of money. But, I now think that it does matter and that in many ways you are creating a network and so forth. For example, a doctor friend of mine has his son in a pricey Ivy league business school and he is learning 'Mandarin Chinese". I guarantee you will not learn that at the local community college. And, as more business flows from China, I think he will most likely be given a 6 figure job right out of college versus if he went to the local Joe Community College.

[mdcrim]

I am all for the state school route. I have had many generations in my family attend USC (Southern Cal) but unless my son intends to live in southern California, I don't really see the value. I can get him an entire 4 year education at a Virginia state school for the same cost as one year at USC. And Virginia has some excellent schools.

[disneysteve]

Originally Posted by mdcrim

I am all for the state school route. I have had many generations in my family attend USC (Southern Cal) but unless my son intends to live in southern California, I don't really see the value. I can get him an entire 4 year education at a Virginia state school for the same cost as one year at USC. And Virginia has some excellent schools.

It is important to keep in mind that not all state schools are cheap and not all state schools are good. Here in NJ, I believe attending the state schools will run well over $20,000/year for in-state residents. While the schools are good, there are probably private schools that are better that don't cost a whole lot more. Now the school I graduated from, which was $10,000 in 1986, is now well over $40,000 and probably not worth it at this point. It is still an excellent school but I think they have priced themselves out of consideration for many people.

[snafu]

Anyone wanting to learn Chinese can take classes in your own community if there is a Chinese Community Assoc. They offer classes in both Cantonese and Mandarian as they want their children to be able to communicate with grandma and family in mainland. Just ask at your server at your fav. Chinese restaurant for contact details.

[thekid]

Definately depends on hiring practices in the particular field of study and her career objectives.

If she is going into business / law and wants a wall street career, for example, a Harvard education will most definately help her in achieving that goal (and may well be a wise investment). If she wants a top flight academic career, an Ivy league education is a wise move as well. Other fields may not matter as much. You really have to look into it carefully.

[thekid]

An interesting side bit, some foreign universities, particularly in the UK, have strong reputations in the US and cost roughly half of what Harvard would cost you. I'm personally in law and went to Oxford University in the UK on a partial scholarship. That got me solicitations from major US and UK firms (and I'm canadian). I came back to Canada, but had I wanted to go to those places this may have been a cheaper route.

[elessar78]

I think in most cases you pay for the name, which DOES NOT discount the fact that you can get a better education at those institutions. That's why there's a reputation attached to the graduates of a University. Merely seeing a particular college on a resume can get you a call back.

IMO, the top state schools have names that "travel well." Liberal arts colleges, as mentioned before, have regional recognition probably a 150 mile radius? Unless they are one of the legendary ones.

[moneybags]

Originally Posted by elessar78

IMO, the top state schools have names that "travel well." Liberal arts colleges, as mentioned before, have regional recognition probably a 150 mile radius? Unless they are one of the legendary ones.

What are the legendary ones?