Paying for Private College

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: If your friend is forgoing saving for retirement by paying his child's way, he should rethink that.

and maybe have some $$ so he could go on a few dates...

Maybe he prefers to pay tuition rather than grabbing p****. Some people have other priorities.

You don't know what that man does other than what you read here. What a bunch of pretentious know-it-alls!

PP again. And I agree with you, PP. What he does with his money is his own business and that includes educating his child the best way he can. When some of you start contributing to his cause, then you can say what he should and shouldn't do.

[Anonymous]

At that income level, they may well qualify for need based aid. It is really up to that family how they spend their money and they seem to have a plan that works. I'd be annoyed by advice on this from someone who hasn't been through it.

[Anonymous]

I'm not sure he's making the wrong choice, although if it were my kid and those were my circumstances, Id probably ask my kid to shoulder some of the debt.

I am facing funding a private college education for my child. I think she'd be served better by the smaller environment, and after the experience at her large public high school we are willing to fund something different to help her get a start in life. We can afford it - albeit with some choices.

[Anonymous]

I don't really understand your math calculations. For a freshman, the Stafford Loan limit is $5500. Onto the grant he received. Is that for merit (high GPA and SATs) or is it need based aid?

[Anonymous]

Anonymous wrote:I don't really understand your math calculations. For a freshman, the Stafford Loan limit is $5500. Onto the grant he received. Is that for merit (high GPA and SATs) or is it need based aid?

This is an important question.

If he qualifies for need-based aid, loans will undoubtedly form part of the FA package.

[Anonymous]

Anonymous wrote:At that income level, they may well qualify for need based aid. It is really up to that family how they spend their money and they seem to have a plan that works. I'd be annoyed by advice on this from someone who hasn't been through it.

+1. I think OP is long gone, and I don't blame him one iota. I hope everything works out for his friend and son. It's hard being a single parent.

[Anonymous]

Anonymous wrote:I don't really understand your math calculations. For a freshman, the Stafford Loan limit is $5500. Onto the grant he received. Is that for merit (high GPA and SATs) or is it need based aid?

That up subsidized limit is higher.

[Anonymous]

Anonymous wrote:I was dining out with a friend whose plan is to continue the same 10-month monthly payment plan at college that he has paid to his DC's private school for years. He says he's so use to the $3k monthly payment that he doesn't feel the pain anymore.

Though the $3k is a mild strain, the plan is to get an annual $10k Stafford loan and repay it over each summer with additional summer work. That will be easy because of the kind of work he does.

He says he is banking on at least one of the 14 schools DC has applied to that someone might give a $25k or close grant. That would leave him and his DC debt free when DC graduates. So far, one rolling admission has given $19k. He is a single parent but makes $125k (he told me after a couple of after dinner drinks) before taxes and mortgage.

I told him to send DC to the state school but DC wants to go away. I think the extra money should be invested for HIM though I understand he wants to make DC happy.

I do think he has a viable plan but there must be another way to take some of the strain off these $65k schools. Thoughts for my friend since I have no college kids?

He has the right to spend his money on his kid's college education if he wishes. I would not follow his plan, if I were he, because it's not workable in the long run. He's going to have very little savings when he's old and ready to retire. A $19K grant is nice, but not enough. He ought to qualify for need-based financial aid at some of the private colleges. He ought to go on the Net Price Calculator at these schools his child has applied to and see if they give him any $$. No way can you pay for a $65K education on a $125K income. Even $36K will be a strain at that income level. The state schools are very good deals, and some are great schools. Tell him to visit the state schools. I know some kids who went to College Park because of money, turning down much more "prestigious" colleges. These kids, to their surprise, are very happy at College Park, despite its huge size. And I know a kid at a competitive SLAC, who left after a year to go to a large land-grant university. The cost of private colleges is completely out of control. Crazy to waste so much money on these schools when a reasonably priced, and fairly similar education is available at a public college.