Is 20k a year less a reason to choose the cheaper school?

[Anonymous]

UGA has better weather than Wisconsin, and higher ranked. UGA for the win.

[Anonymous]

Anonymous wrote:UGA has better weather than Wisconsin, and higher ranked. UGA for the win.

Oh really? Where is it higher ranked? Not that big of a deal, just wasn't aware

[Anonymous]

Anonymous wrote:

Anonymous wrote:80k put into a Roth IRA before age 25 would pretty much secure the kids retirement.

Maybe but it’s pretty hard to do

Hard and actually not possible.
Roth IRA contribution this year is limited to $7000– and there has to be at least $7000 of earned income by the Roth IRA holder.

So if your kid is earning seven grand in 2024-then you can make that contribution into an account and their name.

You cannot just put 80k into an account!

[Anonymous]

Anonymous wrote:Major is the most important, if it's not stem don't waste your moneu

+1

This is true.

[Anonymous]

We did for 40k. It does give me heartburn but the schools were not equal. Small pretty good SLAC vs. top SLAC. It was doable financially.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:80k put into a Roth IRA before age 25 would pretty much secure the kids retirement.

Maybe but it’s pretty hard to do

Hard and actually not possible.
Roth IRA contribution this year is limited to $7000– and there has to be at least $7000 of earned income by the Roth IRA holder.

So if your kid is earning seven grand in 2024-then you can make that contribution into an account and their name.

You cannot just put 80k into an account!

Probably why she said by age 25 and not by age 18.

My kids put as much into a roth as they earn, and have since they were 14. You start now and give the kid the money to put into their roth. And this goes up every year, lately by about 500 a year so by the time they're 23, 24, 25, there's every chance they could be putting 10k in a year. And maybe it takes til they're 27 to shift all 80k into the roth? So what. That money has grown since then. They can leave the extra to grow in this 529 for their own kids. You get your kid's retirement started and set on autopilot and they're own kids college fund sitting on autopilot for 30 years, and that changes a person's financial trajectory .. far more than the small difference in name brand of college. NPV, people!

[Anonymous]

But if a person going to college has a Roth IRA, wouldn't their non-merit aid offer take that into account?

(Meaning, when they be forced to use it for college?)

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m struggling to think of two schools that are truly “equal” where one would be 85k and the other would be 65k with merit.

Wisconsin 61k
UGA about 38k w merit

In general, I think if it’s exactly the same, you go for the cheaper option. But with for example Wisconsin and UGA I feel like they are similar but not the same. They are in different regional locations, they might have different majors that are strong/most popular, different percentages of Greek life participation, maybe different industries with ties to the schools and locations for alumni. Depending on your kid and what they want to do and how they envision their college experience, I could see one school being their preference over the other.

What would be the reasons for your kid to pick Wisconsin over UGA? And to decide if it’s 80K worth of difference, would it be worth it to your family to give up the alternative of what could be done with that money (i.e. money for grad school, money for your kid’s housing down payment etc.)?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m struggling to think of two schools that are truly “equal” where one would be 85k and the other would be 65k with merit.

Wisconsin 61k
UGA about 38k w merit

In general, I think if it’s exactly the same, you go for the cheaper option. But with for example Wisconsin and UGA I feel like they are similar but not the same. They are in different regional locations, they might have different majors that are strong/most popular, different percentages of Greek life participation, maybe different industries with ties to the schools and locations for alumni. Depending on your kid and what they want to do and how they envision their college experience, I could see one school being their preference over the other.

What would be the reasons for your kid to pick Wisconsin over UGA? And to decide if it’s 80K worth of difference, would it be worth it to your family to give up the alternative of what could be done with that money (i.e. money for grad school, money for your kid’s housing down payment etc.)?

If he wants Wisconsin we will pay. If he's undecided then I think makes sense to do so UGA. They're very similar for business. Neither direct admit, similar Greek life. UGA has two
Tries to get into business school. Wisconsin has one.

[Anonymous]

Anonymous wrote:We did for 40k. It does give me heartburn but the schools were not equal. Small pretty good SLAC vs. top SLAC. It was doable financially.

We are in this place now, but it sounds like a step down. Pretty good SLACs (T30-50) vs. smaller and less well known/resourced LACs (70-115), 40+k/year difference. Doable, but definitely not a no-brainer for us. Heartburn, indeed.

[Anonymous]

I don’t think OP has noted the schools - someone else came up with the UGA/Wisco example.

[Anonymous]

Anonymous wrote:I don’t think OP has noted the schools - someone else came up with the UGA/Wisco example.

Yes it's UGA 39k
Wisconsin 61k

[Anonymous]

if you invest the difference for them,that's about 1,247,567. 76 when they retire.

[Anonymous]

I would 100% choose the less expensive option if both are equal in all other ways. Seriously. Not everyone has that much money to burn.

[Anonymous]

We are turning down $20k/year in merit. While. the schools are considered “overlaps”, and I think that for some programs they are, for DC’s major and career interests the school that didn’t offer merit has a much better reputation and recruitment. It’s hard because DC could do a lot with that money. But at the real risk of starting their career in a position far behind their peers.