As schools near $100K/year when will that affect the pool of students?
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Anonymous
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Just read on another post that someone is paying $95K/year for USC.
Several kids from my kids' schools are starting there this fall. I know most on DCUM can pony up $400K for 4 years but how many people like this are really out there? I also know these schools have 40% (or whatnot) that pay $0/year. At what point will the price of some of these schools begin to effect the size of their applicant pool? Either because people don't have the cash or say "that is insane--screw it". |
Anonymous
When you’re no longer allowed to take out Parent Plus Loans up to the cost of attendance. NYU & USC graduates are #1 for PPL debt. |
Anonymous
| I don't think its a tipping point. This question has been asked every year when tuition rises. The answer is that it affects a few more families every year, which is why you have also seen a much larger interest in merit-award giving schools than you did in the past. But its incremental. |
Anonymous
| Because not everyone is paying sticker price, I hope. My kid chose an 85K/yr private university, but has a 20K annual scholarship. It makes it a little easier to accept. Even though 65K for an undergraduate education is still completely ridiculous!!! |
Anonymous
Or how about when the schools are on the hook when people default on loans? At the moment, the schools risk nothing when they jack up costs. |
Anonymous
| Over the past 20 years, some countries such as India have gotten substantially wealthier & more developed. That trend is likely to continue; meaning more wealthy international students whose families think $100k/year COA is chump change. |
Anonymous
| My kid attends JMU. Total COA for all four years combined will be a hair over $100,000. |
Anonymous
But PPL money us owed by the parents, not the graduate |
Anonymous
It’s practically unlimited. The gov will give someone who takes out PPLs whatever the school’s published COA is. The school can decide it’s going to have a COA of $250,000/year (and actually USC’s dental program isn’t far from that, although I’m talking about undergrad), and the govt will give the school $250,000/year on behalf of the student. The govt has no hard cap on what they’ll give out in PPLs, except a particular school’s exorbitant, perpetually increasing COA. Also, private loans, on the other hand, are taken out in the student’s name with a co-signer. Same idea with no hard cap on COA by lenders. |
Anonymous
Why would they do that? They have no control over the outcome. That will not happen. |
Anonymous
| Why do you think it hasn’t already? Look at the stats of cheaper publics and they are way higher than they used to be |
Anonymous
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It already is. In theory, we could "afford" to send our kids anywhere. In practice, DC1 chose to stay instate (where we get a tuition break on top of lower tuition anyway, due to one parent's job). Total for DC1 for 4 years should be around $100K, which is about what it was for me to go to an expensive private college back in the early 90's.
It's truly hard to imagine how it would be "worth" $300K more for an undergraduate education. We're already seeing more and more great students choosing public colleges and universities, and that helps to make those schools better. I think the tipping point will eventually be that if costs of private keep rising, the best students will be choosing public, and then the whole system will implode. |
Anonymous
Well, of course they wouldn't want to. But right now, colleges have ZERO skin in the game when it comes to tuition. They risk nothing if kids don't graduate or if they produce unemployable graduates. If we want to make college affordable, make them accountable as well. |
Anonymous
Rich and poor are fine. LMC is likely fine. The ones screwed are MC to lower UMC. As a poster says above each year a few more drop off but nothing that will impact cost. There will not be a tipping point. What there will be is that some people will not be able to consider certain schools. |
Anonymous
What? Why would schools be "on the hook when people default on loans?" Schools do NOT take the loans. Plenty of people go to these schools withOUT PPL. If parents are dumb enough to take PPL, then they need to deal with the repayment. Nobody is forcing you to do this. There are literally hundreds of schools you can attend that will be affordable and not require more than regular student loans that max out at 27K for 4 years |