Middle class families - Are you willing to take on a ton of debt for a top college?

[Anonymous]

I'm not middle class. We make around 420-450k. I won't be spending a lot on any education unless it's a top tier college. I believe in public education and don't think for most people that spending hundreds of thousands of dollars on education is worthwhile. I've had many peers attend private schools and not amount to much.

Instead of sending our child to private school we are saving a good 25k a year in a brokerage account for him. After doing this for 15 years (preK years through high school) he will have almost 400k, which should be a sizeable downpayment on a house. I'd much prefer to give my child a downpayment than private school.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I went to UVA for undergrad and law school. It's an awesome school. If my kid gets into Columbia and UVA, I would pay for Columbia, bc Columbia is a better undergrad than UVA. Columbia opens doors that UVA does not. How could you ever say you wouldn't pay for the better school? I could pay cash for her tuition, but even if I couldn't -- if I was the poors -- I would take out loans, beg on the street, I would do ANYTHING to get the $. That so many would be unwilling to do so is a terrific indication of why you are middle class in the first place -- you will not do whatever it takes to get to the top. Sad you condemn your kids to your life of meritocracy.

+1
I thought it was pretty much a given that parents would do whatever it takes to help their children get ahead. I'd be willing to eat beans to send my kid to Columbia.

But here's the problem. Let's say you yourself went to top schools and you finally finish paying off your student loans and then you realize that in order to afford the same for your kids you will have to live in a tiny house and vacation only at places
you can drive to, and always wear clothes from Target and eat only generic brand food in order to afford the good school district and the lessons and the enrichment and the tuition so that your kids can go to these same schools. Then when they graduate, they can live in a tiny house in a good school district, wear clothes from Target and eat generic brand food so that they can pay off their loans and send their kids to those same schools. So when exactly does anybody actually get to enjoy their income and their life and have a life that's significantly different from the regular people who make less money and go to state schools? That's the part I had trouble with -- at the end of the day, even with the expensive education, you end up at the same place as the guy who saved his money. We went to look at a beach house this weekend, and the guy who was selling it was a retired fire fighter with a really good pension. I wondered why I spent so long in graduate school, etc. when this dude could afford a beach house and we probably won't be able to. What's all that education for?

[Anonymous]

DP, but to add to that ^, we're not comparing Columbia vs. a community college, Columbia vs. ODU, or Columbia vs. not going to college at all, or anything like that. The comparison is between two top-25, extremely well-regarded institutions. Aside from perhaps Wall Street, I truly cannot think of a door worth six figures of debt that Columbia would open.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I went to UVA for undergrad and law school. It's an awesome school. If my kid gets into Columbia and UVA, I would pay for Columbia, bc Columbia is a better undergrad than UVA. Columbia opens doors that UVA does not. How could you ever say you wouldn't pay for the better school? I could pay cash for her tuition, but even if I couldn't -- if I was the poors -- I would take out loans, beg on the street, I would do ANYTHING to get the $. That so many would be unwilling to do so is a terrific indication of why you are middle class in the first place -- you will not do whatever it takes to get to the top. Sad you condemn your kids to your life of meritocracy.

+1
I thought it was pretty much a given that parents would do whatever it takes to help their children get ahead. I'd be willing to eat beans to send my kid to Columbia.

But here's the problem. Let's say you yourself went to top schools and you finally finish paying off your student loans and then you realize that in order to afford the same for your kids you will have to live in a tiny house and vacation only at places
you can drive to, and always wear clothes from Target and eat only generic brand food in order to afford the good school district and the lessons and the enrichment and the tuition so that your kids can go to these same schools. Then when they graduate, they can live in a tiny house in a good school district, wear clothes from Target and eat generic brand food so that they can pay off their loans and send their kids to those same schools. So when exactly does anybody actually get to enjoy their income and their life and have a life that's significantly different from the regular people who make less money and go to state schools? That's the part I had trouble with -- at the end of the day, even with the expensive education, you end up at the same place as the guy who saved his money. We went to look at a beach house this weekend, and the guy who was selling it was a retired fire fighter with a really good pension. I wondered why I spent so long in graduate school, etc. when this dude could afford a beach house and we probably won't be able to. What's all that education for?

This. It's why I'm saving 25k a year for my child instead of sending them to private school. They will have close to a million dollars to keep in investments, open a business or a large downpayment on a home. Will get them much further than wasting it on education they could get for much less.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I went to UVA for undergrad and law school. It's an awesome school. If my kid gets into Columbia and UVA, I would pay for Columbia, bc Columbia is a better undergrad than UVA. Columbia opens doors that UVA does not. How could you ever say you wouldn't pay for the better school? I could pay cash for her tuition, but even if I couldn't -- if I was the poors -- I would take out loans, beg on the street, I would do ANYTHING to get the $. That so many would be unwilling to do so is a terrific indication of why you are middle class in the first place -- you will not do whatever it takes to get to the top. Sad you condemn your kids to your life of meritocracy.

+1
I thought it was pretty much a given that parents would do whatever it takes to help their children get ahead. I'd be willing to eat beans to send my kid to Columbia.

But here's the problem. Let's say you yourself went to top schools and you finally finish paying off your student loans and then you realize that in order to afford the same for your kids you will have to live in a tiny house and vacation only at places
you can drive to, and always wear clothes from Target and eat only generic brand food in order to afford the good school district and the lessons and the enrichment and the tuition so that your kids can go to these same schools. Then when they graduate, they can live in a tiny house in a good school district, wear clothes from Target and eat generic brand food so that they can pay off their loans and send their kids to those same schools. So when exactly does anybody actually get to enjoy their income and their life and have a life that's significantly different from the regular people who make less money and go to state schools? That's the part I had trouble with -- at the end of the day, even with the expensive education, you end up at the same place as the guy who saved his money. We went to look at a beach house this weekend, and the guy who was selling it was a retired fire fighter with a really good pension. I wondered why I spent so long in graduate school, etc. when this dude could afford a beach house and we probably won't be able to. What's all that education for?

Your operating assumption is that prestigious school = make more money, which is not by any means a given.

[Anonymous]

I think most people assume that going to the prestigious school will bump them up in terms of social class. My point is that it would -- except for the fact that you immediately have to spend all that money on educating the next generation, due to the pricing structure at those same schools. Make more money, pay more tuition. What's the point really?
If you go to an Ivy League school, I don't think it's unreasonable to expect that at the end you should be able to afford a nicer home and a country club membership and maybe a boat -- but instead, you just have to save all your money for your kids' tuition. My parents didn't go to fancy schools and they have a nicer lifestyle than I do with the fancy schools -- because they were of the generation that paid much less for a house, much less for our education, etc. And of the generation that actually gets a pension, etc.
Maybe going to an Ivy League school had a higher ROI for Baby Boomers than it did for later generations. Is there any research on that?

[Anonymous]

Wow, I sure didn't go to Harvard in hopes of emerging with a country club membership and a boat. What an effed-up attitude.

[Anonymous]

Anonymous wrote:I think most people assume that going to the prestigious school will bump them up in terms of social class. My point is that it would -- except for the fact that you immediately have to spend all that money on educating the next generation, due to the pricing structure at those same schools. Make more money, pay more tuition. What's the point really?
If you go to an Ivy League school, I don't think it's unreasonable to expect that at the end you should be able to afford a nicer home and a country club membership and maybe a boat -- but instead, you just have to save all your money for your kids' tuition. My parents didn't go to fancy schools and they have a nicer lifestyle than I do with the fancy schools -- because they were of the generation that paid much less for a house, much less for our education, etc. And of the generation that actually gets a pension, etc.
Maybe going to an Ivy League school had a higher ROI for Baby Boomers than it did for later generations. Is there any research on that?

Why do you think that it's reasonable to expect that an Ivy League degree should afford you a nicer home and a country club membership and maybe a boat? Where are you getting that?

It sounds like you don't understand much about education.

[Anonymous]

Anonymous wrote:I'm not middle class. We make around 420-450k. I won't be spending a lot on any education unless it's a top tier college. I believe in public education and don't think for most people that spending hundreds of thousands of dollars on education is worthwhile. I've had many peers attend private schools and not amount to much.

Instead of sending our child to private school we are saving a good 25k a year in a brokerage account for him. After doing this for 15 years (preK years through high school) he will have almost 400k, which should be a sizeable downpayment on a house. I'd much prefer to give my child a downpayment than private school.

It's true you are not middle class. You're the poors. FYI, its not a choice between pay for Private or put away $ in an ETF- it's both. And $2k a month is a meaningless amount of money in any event. I would never tell anyone that if I were you or I would add a zero on the end. But at least now the kid can buy a house Near you in Gainesville.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm not middle class. We make around 420-450k. I won't be spending a lot on any education unless it's a top tier college. I believe in public education and don't think for most people that spending hundreds of thousands of dollars on education is worthwhile. I've had many peers attend private schools and not amount to much.

Instead of sending our child to private school we are saving a good 25k a year in a brokerage account for him. After doing this for 15 years (preK years through high school) he will have almost 400k, which should be a sizeable downpayment on a house. I'd much prefer to give my child a downpayment than private school.

It's true you are not middle class. You're the poors. FYI, its not a choice between pay for Private or put away $ in an ETF- it's both. And $2k a month is a meaningless amount of money in any event. I would never tell anyone that if I were you or I would add a zero on the end. But at least now the kid can buy a house Near you in Gainesville.

I can't decide if I think you are sadly delusional or just picking a fight for the excitement of it

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm not middle class. We make around 420-450k. I won't be spending a lot on any education unless it's a top tier college. I believe in public education and don't think for most people that spending hundreds of thousands of dollars on education is worthwhile. I've had many peers attend private schools and not amount to much.

Instead of sending our child to private school we are saving a good 25k a year in a brokerage account for him. After doing this for 15 years (preK years through high school) he will have almost 400k, which should be a sizeable downpayment on a house. I'd much prefer to give my child a downpayment than private school.

It's true you are not middle class. You're the poors. FYI, its not a choice between pay for Private or put away $ in an ETF- it's both. And $2k a month is a meaningless amount of money in any event. I would never tell anyone that if I were you or I would add a zero on the end. But at least now the kid can buy a house Near you in Gainesville.

You are crazy. 400-500k is a sizeable downpayment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not middle class. We make around 420-450k. I won't be spending a lot on any education unless it's a top tier college. I believe in public education and don't think for most people that spending hundreds of thousands of dollars on education is worthwhile. I've had many peers attend private schools and not amount to much.

Instead of sending our child to private school we are saving a good 25k a year in a brokerage account for him. After doing this for 15 years (preK years through high school) he will have almost 400k, which should be a sizeable downpayment on a house. I'd much prefer to give my child a downpayment than private school.

It's true you are not middle class. You're the poors. FYI, its not a choice between pay for Private or put away $ in an ETF- it's both. And $2k a month is a meaningless amount of money in any event. I would never tell anyone that if I were you or I would add a zero on the end. But at least now the kid can buy a house Near you in Gainesville.

I can't decide if I think you are sadly delusional or just picking a fight for the excitement of it

Has to be picking a fight. They are saying that it's a meaningless amount of money unless it's 4 million for a downpayment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I went to UVA for undergrad and law school. It's an awesome school. If my kid gets into Columbia and UVA, I would pay for Columbia, bc Columbia is a better undergrad than UVA. Columbia opens doors that UVA does not. How could you ever say you wouldn't pay for the better school? I could pay cash for her tuition, but even if I couldn't -- if I was the poors -- I would take out loans, beg on the street, I would do ANYTHING to get the $. That so many would be unwilling to do so is a terrific indication of why you are middle class in the first place -- you will not do whatever it takes to get to the top. Sad you condemn your kids to your life of meritocracy.

+1
I thought it was pretty much a given that parents would do whatever it takes to help their children get ahead. I'd be willing to eat beans to send my kid to Columbia.

I love the elitist on DCUM, always classy. In many fields, Ivy League really doesn't mean much. Spending a ton of money on college is often a bad move financially. That extra 200k that you saved could end up being over a million if you invest it instead. And that is money that you might need for retirement or maybe your kids inheritance.

+1.

+2

Unless you want to work in financial, legal, or high-end consulting, an Ivy League degree is not a necessity (and, for legal, as long as your law school is top-shelf, it might not even matter). (I work with people who care about where you received your education, and it's nothing but cull for people they perceive to be of the same social class.) Why go into that debt if it doesn't improve outcomes? Until someone shows me ROI that is corrected for socioeconomic status of family or origin, I think it seems like a fairly poor investment for the average American.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm not middle class. We make around 420-450k. I won't be spending a lot on any education unless it's a top tier college. I believe in public education and don't think for most people that spending hundreds of thousands of dollars on education is worthwhile. I've had many peers attend private schools and not amount to much.

Instead of sending our child to private school we are saving a good 25k a year in a brokerage account for him. After doing this for 15 years (preK years through high school) he will have almost 400k, which should be a sizeable downpayment on a house. I'd much prefer to give my child a downpayment than private school.

It's true you are not middle class. You're the poors. FYI, its not a choice between pay for Private or put away $ in an ETF- it's both. And $2k a month is a meaningless amount of money in any event. I would never tell anyone that if I were you or I would add a zero on the end. But at least now the kid can buy a house Near you in Gainesville.

Says the single woman aged 50 bitter about the fact she has no kids and a degree from bumblefux university Arizona

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not middle class. We make around 420-450k. I won't be spending a lot on any education unless it's a top tier college. I believe in public education and don't think for most people that spending hundreds of thousands of dollars on education is worthwhile. I've had many peers attend private schools and not amount to much.

Instead of sending our child to private school we are saving a good 25k a year in a brokerage account for him. After doing this for 15 years (preK years through high school) he will have almost 400k, which should be a sizeable downpayment on a house. I'd much prefer to give my child a downpayment than private school.

It's true you are not middle class. You're the poors. FYI, its not a choice between pay for Private or put away $ in an ETF- it's both. And $2k a month is a meaningless amount of money in any event. I would never tell anyone that if I were you or I would add a zero on the end. But at least now the kid can buy a house Near you in Gainesville.

Says the single woman aged 50 bitter about the fact she has no kids and a degree from bumblefux university Arizona

Ha! If only you knew, bro. If only you knew.