Question about financial aid at Ivies

[Anonymous]

Anonymous wrote:If you are paying for private high school now, wouldn't you be able to figure out a way to pay for private college tuition? It seems odd that you would gamble by paying for private HS with the expectation that college would be free but if that is the gamble you have made, you now may have to look outside of an Ivy league school, which would mean you chose to pay for a high quality high school at the expense of the best private college your child could go to.

Gamble? I don't think you understand why people go to private school.

[Anonymous]

Anonymous wrote:If you are paying for private high school now, wouldn't you be able to figure out a way to pay for private college tuition? It seems odd that you would gamble by paying for private HS with the expectation that college would be free but if that is the gamble you have made, you now may have to look outside of an Ivy league school, which would mean you chose to pay for a high quality high school at the expense of the best private college your child could go to.

+1. If you are paying $35,000 now for this child, this leaves a shortfall of about $25,000. Assuming you have some college savings, you can lower the remaining balance by at least $5,000-$10,000 per year - hopefully more - by spreading that 529 account over four years. To pay the balance, maybe a combination of loans (don't do more than the federal unsubsidized loans, which are capped at something like $6,500 per year, rising each year), and more cash. Sallie Mae has a college tuition payment plan much like the one you can use at private schools, that spreads your cash contribution over 5 or 10 months. So if you still need $15k more, that's an additional contribution of $1,500 per month for 10 months.

Of course, you'd want to be able to make this additional sacrifice for your other kids, too, and I don't know if that's possible.

[Anonymous]

You can afford college. What you can't afford is 2 in private school, 1 in Ivy, extravagant vacations, luxury cars, expensive mortgage, keeping up with the Joneses and Goldbergs. On $250K HHI, it can work. It may take some belt-tightening and school adjustment, but it can work. Ask not what financial aid will be provided, instead ask what can we do at home to make it work.

[Anonymous]

Anonymous wrote:You can afford college. What you can't afford is 2 in private school, 1 in Ivy, extravagant vacations, luxury cars, expensive mortgage, keeping up with the Joneses and Goldbergs. On $250K HHI, it can work. It may take some belt-tightening and school adjustment, but it can work. Ask not what financial aid will be provided, instead ask what can we do at home to make it work.

Um, OP didn't ask whether she could "afford college", she asked whether she could afford an Ivy. She specifically said she wasn't committed to the whole Ivy route, so there's no reason to suggest she pull her other kids out of private school or trade down on housing. Also, it's not obvious why you're accusing her of taking extravagant vacations. Her post shows she's aware her kid can get a great education at a SLAC that's willing to give him money. If you're one of the people who thinks that Ivies are the only worthwhile education, you should chill and take a leaf from OP's book.

[Anonymous]

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

[Anonymous]

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

Plus, if you've been paying $35k a year for 12 years what is it about year 13 that suddenly makes it unaffordable?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

Plus, if you've been paying $35k a year for 12 years what is it about year 13 that suddenly makes it unaffordable?

Just guessing here, but maybe that additional $25k?

[Anonymous]

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

And that's why I want to scream every time someone posts on the Private school forum about how private school is so important that they're living beyond their means, sacrificing college and retirement savings, for it. Of course, if your kid has special needs, or the family really wants a religious education, then yes, I can see sacrificing these other things. If the family bought their house in 1995 or 2006, then they're doubly in trouble with huge mortgages.

Lots of well-meaning middle class families can't afford Ivies, because of decisions that seemed to make sense when DC was 4. You shouldn't just assume it's a character flaw, a problem of fancy vacations and fancy cars.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

And that's why I want to scream every time someone posts on the Private school forum about how private school is so important that they're living beyond their means, sacrificing college and retirement savings, for it. Of course, if your kid has special needs, or the family really wants a religious education, then yes, I can see sacrificing these other things. If the family bought their house in 1995 or 2006, then they're doubly in trouble with huge mortgages.

Lots of well-meaning middle class families can't afford Ivies, because of decisions that seemed to make sense when DC was 4. You shouldn't just assume it's a character flaw, a problem of fancy vacations and fancy cars.

It's a catch 22 ... If the kid goes to a school that is a good fit he might like school work hard and have great grades but the family does not make enough to pay for Ivy but was too responsible to qualify for FA. But if they save all their money and go to a school the kid hates he is not engaged and does not get the grades.

This is not just an Ivy question. It's the reason really great people just don't want their sons to go into teaching, get stuck in the middle class and can afford anything but make too much to qualify for FA.

[Anonymous]

Anonymous wrote:You can afford college. What you can't afford is 2 in private school, 1 in Ivy, extravagant vacations, luxury cars, expensive mortgage, keeping up with the Joneses and Goldbergs. On $250K HHI, it can work. It may take some belt-tightening and school adjustment, but it can work. Ask not what financial aid will be provided, instead ask what can we do at home to make it work.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

Plus, if you've been paying $35k a year for 12 years what is it about year 13 that suddenly makes it unaffordable?

Just guessing here, but maybe that additional $25k?

Sorry, let me rephrase that. If you've been paying $35k for 16 years, what is it about year 17 that makes it about unaffordable? An 80k loan could be paid off fairly quickly.

Chances are this is all hypothetical anyway.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

Plus, if you've been paying $35k a year for 12 years what is it about year 13 that suddenly makes it unaffordable?

Just guessing here, but maybe that additional $25k?

Sorry, let me rephrase that. If you've been paying $35k for 16 years, what is it about year 17 that makes it about unaffordable? An 80k loan could be paid off fairly quickly.

Chances are this is all hypothetical anyway.

Not Pp but what they are saying it is not $35k ... It is more like $50k. A

I would also add that 12 years ago private school was not $35 ..more like $20-$25. Also she has one in college already. So instead of $30kx3 it is $50k x 2 + $30k for the last kid. $90k vs $130k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

Plus, if you've been paying $35k a year for 12 years what is it about year 13 that suddenly makes it unaffordable?

Just guessing here, but maybe that additional $25k?

Sorry, let me rephrase that. If you've been paying $35k for 16 years, what is it about year 17 that makes it about unaffordable? An 80k loan could be paid off fairly quickly.

Chances are this is all hypothetical anyway.

Actually an $80k loan is very crippling. Then there may be more debt for grad school.

With $80K, you're paying at about $920 a month in student loans for 10 years, until you're 32 (http://studentaid.ed.gov/repay-loans/understand/plans/standard/comparison-calculator). Not everyone can rely on the happy scenario above where dad paid off his son's loans (although my mom did pay off my loans). Unless you go into finance or something really lucrative, this $920/month payment is going to handicap you in (1) your job choice, because low-income jobs like teaching won't be options unless you do Teach America and get debt forgiveness, (2) entering the housing market and (3) saving for retirement. If you marry and your spouse has a similar amount of debt, this is probably going to slow you down in (4) starting a family. There's actually a lot of news about crushing student loan debt burdens recently, you should read up on it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

Plus, if you've been paying $35k a year for 12 years what is it about year 13 that suddenly makes it unaffordable?

Just guessing here, but maybe that additional $25k?

Sorry, let me rephrase that. If you've been paying $35k for 16 years, what is it about year 17 that makes it about unaffordable? An 80k loan could be paid off fairly quickly.

Chances are this is all hypothetical anyway.

Not Pp but what they are saying it is not $35k ... It is more like $50k. A

I would also add that 12 years ago private school was not $35 ..more like $20-$25. Also she has one in college already. So instead of $30kx3 it is $50k x 2 + $30k for the last kid. $90k vs $130k

C'mon, it's not as high as $50k unless you're donating $$$ to the auction and DC participates in the most expensive school clubs. Also, I wonder if OP's kids are in parochial schools, which are less expensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Big difference between private HS (35k on the high end for the DMV area) & Ivy (60k a year).

Well yeah, but you would imagine that there would be at least some savings to tap into. And is some student loan debt the end of the world? I understand that going 200K into debt is really horrible for a young person to be saddled with, but I'm not sure that ~20K or less at a low interest rate is so untenable for a young person (obviously 25K x 4 is 100K, but presuming there might be savings in the picture).

And that's why I want to scream every time someone posts on the Private school forum about how private school is so important that they're living beyond their means, sacrificing college and retirement savings, for it. Of course, if your kid has special needs, or the family really wants a religious education, then yes, I can see sacrificing these other things. If the family bought their house in 1995 or 2006, then they're doubly in trouble with huge mortgages.

Lots of well-meaning middle class families can't afford Ivies, because of decisions that seemed to make sense when DC was 4. You shouldn't just assume it's a character flaw, a problem of fancy vacations and fancy cars.

It's a catch 22 ... If the kid goes to a school that is a good fit he might like school work hard and have great grades but the family does not make enough to pay for Ivy but was too responsible to qualify for FA. But if they save all their money and go to a school the kid hates he is not engaged and does not get the grades.

This is not just an Ivy question. It's the reason really great people just don't want their sons to go into teaching, get stuck in the middle class and can afford anything but make too much to qualify for FA.

I agree with the catch 22 part completely - if you save for college, then you won't qualify for FA. If you earn more than $100k you aren't going to qualify for even partial FA unless you have extenuating circumstances.

I do disagree with the assumption here, that your kid is going to hate school unless you put him in private school. There are certainly some public schools that are bad, but there are also plenty of great public schools with smart, motivated kids. Conversely, we've had some bad teachers in private school, in fact DC was ready to put needles in his eyes in 4th grade at a well-respected DC-area private school. Parental sacrifice doesn't have to mean foregoing the college and retirement savings ... parental sacrifice can also mean giving up that fun urban house and moving to the burbs for a good public school plus the ability to save for college.