Michelle singleterry article yesterday

[Anonymous]

Did anyone read this: http://www.washingtonpost.com/business/the-bottom-line-when-picking-a-university-no-debt-for-our-daughter-or-for-us/2014/04/17/d3310c5c-c4ac-11e3-bcec-b71ee10e9bc3_story.html and her daughter's accompanying story: http://www.washingtonpost.com/business/the-best-education-your-money-can-buy/2014/04/18/8665ce38-c580-11e3-bf7a-be01a9b69cf1_story.html ?

I have told the kids (currently in middle school) that we are only paying in state tuition (we're in VA) and that they should pay a certain percentage of tuition, and for books and discretionary expenses - I firmly believe in the value of work. I also say we will also pay for 4 years only but DH and I disagree on this. I'm sure if an Ivy came into the picture, some adjustments would be made LOL. We could afford to pay all, and send out of state, I just think it is important that they understand the value of money and what you're getting in return.

What do others think?

[Anonymous]

Great outcome! The reality is that most students can chose between a range of more and less expensive options of similar quality. There's this myth out there that "investing" in a more prestigious school pays off - but no student is choosing between Harvard and community college. The reality is choosing between similar options at difference price points.

I do disagree with some underlying ideas in this column. First of all, student loan deb IS still "good debt". Students who need to borrow should not be deterred from school. If the daughter needed to borrow to get her UMD education that still would be worthwhile, within limits. She will have income eventually, so it is not irrational to invest in future earning capacity as long as the debt load is reasonable.

Second, the parents may be doing a disservice by making her work over the summers to pay for books & incidentals. Summers can be key times for internships and travel, both of which can help landing jobs after graduation. If the parents could subsidize her summers that might really pay off.

[Anonymous]

I think it is important that the school is the right fit for the student. Some students thrive in a big public university, particularly if they can get into the "school within the school" honors program mentioned in the article. Some students really need a smaller environment.

I do think there is some truth in that students who have to pay part of their own costs value the experience more, are more focused in their studies and goof off less.

I also think there is considerable value to attending college far from home. To me, part of the college experience is the people you meet from other parts of the country, other backgrounds, traditions, cultures. There is value in not being able to run home to mommy and daddy when the going gets tough, be that a painful breakup, strep throat, needing to study when your roommates want to throw a party, etc.

Would you and your DH be OK with paying tuition, room, board and books for each child (at a mutually agreeable school, and/or up to a set limit), and they would have to earn the money for the transportation and "extras" (Greek life, general spending money, breaks, etc)?

[Anonymous]

Anonymous wrote:Great outcome! The reality is that most students can chose between a range of more and less expensive options of similar quality. There's this myth out there that "investing" in a more prestigious school pays off - but no student is choosing between Harvard and community college. The reality is choosing between similar options at difference price points.

I do disagree with some underlying ideas in this column. First of all, student loan deb IS still "good debt". Students who need to borrow should not be deterred from school. If the daughter needed to borrow to get her UMD education that still would be worthwhile, within limits. She will have income eventually, so it is not irrational to invest in future earning capacity as long as the debt load is reasonable.

Second, the parents may be doing a disservice by making her work over the summers to pay for books & incidentals. Summers can be key times for internships and travel, both of which can help landing jobs after graduation. If the parents could subsidize her summers that might really pay off.

I don't think student loan is "good debt" anymore. I mean, yeah, it's a proper use of leverage since it leads to an ROI, but student loan debt is also the only thing you cannot shed in bankruptcy.

[Anonymous]

Question from reality- this happened to a good friend. Your child wants to be an engineer. Your child gets into GMU for Engineering but is wait listed in Engineering at Va Tech and is accepted to but receives no financial help from:

Renssalaer
Purdue
Embry-Riddle

Would you still only pay for Engineering at George Mason?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Great outcome! The reality is that most students can chose between a range of more and less expensive options of similar quality. There's this myth out there that "investing" in a more prestigious school pays off - but no student is choosing between Harvard and community college. The reality is choosing between similar options at difference price points.

I do disagree with some underlying ideas in this column. First of all, student loan deb IS still "good debt". Students who need to borrow should not be deterred from school. If the daughter needed to borrow to get her UMD education that still would be worthwhile, within limits. She will have income eventually, so it is not irrational to invest in future earning capacity as long as the debt load is reasonable.

Second, the parents may be doing a disservice by making her work over the summers to pay for books & incidentals. Summers can be key times for internships and travel, both of which can help landing jobs after graduation. If the parents could subsidize her summers that might really pay off.

I don't think student loan is "good debt" anymore. I mean, yeah, it's a proper use of leverage since it leads to an ROI, but student loan debt is also the only thing you cannot shed in bankruptcy.

If you are choosing between no college (or really bad college) and student debt, student debt is definitely still "good debt." A worthwhile college education should absolutely increase your earning capacity enough to handle a modest monthly loan payment. Student loans have appropriately helped millions of students get educations. There are many more nuances and outright fraudulent sectors (for profit colleges), but financing higher education with loans is a good option for many.

[Anonymous]

Anonymous wrote:I think it is important that the school is the right fit for the student. Some students thrive in a big public university, particularly if they can get into the "school within the school" honors program mentioned in the article. Some students really need a smaller environment.

I do think there is some truth in that students who have to pay part of their own costs value the experience more, are more focused in their studies and goof off less.

I also think there is considerable value to attending college far from home. To me, part of the college experience is the people you meet from other parts of the country, other backgrounds, traditions, cultures. There is value in not being able to run home to mommy and daddy when the going gets tough, be that a painful breakup, strep throat, needing to study when your roommates want to throw a party, etc.

Would you and your DH be OK with paying tuition, room, board and books for each child (at a mutually agreeable school, and/or up to a set limit), and they would have to earn the money for the transportation and "extras" (Greek life, general spending money, breaks, etc)?

My DS attends a large state university one hour from home. He has only returned home for Thanksgiving, winter and spring break, and Easter. My niece and nephew attended school five hours from their home and came home at least once a month. DS has met lots of kids from other states and several other countries; my niece and nephew went to a state school with kids who were mainly from their own state and largely from the DC metro area. I understand the wish to have your child become independent and learn to stand on their own, but going to school hours away from home doesn't automatically make a child more independent or resourceful, or enable them to meet kids who have a different background from their own.

[Anonymous]

Anonymous wrote:Question from reality- this happened to a good friend. Your child wants to be an engineer. Your child gets into GMU for Engineering but is wait listed in Engineering at Va Tech and is accepted to but receives no financial help from:

Renssalaer
Purdue
Embry-Riddle

Would you still only pay for Engineering at George Mason?

I would check out job placement stats for GMU. If grads get engineering jobs, then I would not help my kid to elsewhere for more $$$.

[Anonymous]

Anonymous wrote:I think it is important that the school is the right fit for the student. Some students thrive in a big public university, particularly if they can get into the "school within the school" honors program mentioned in the article. Some students really need a smaller environment.

I do think there is some truth in that students who have to pay part of their own costs value the experience more, are more focused in their studies and goof off less.

I also think there is considerable value to attending college far from home. To me, part of the college experience is the people you meet from other parts of the country, other backgrounds, traditions, cultures. There is value in not being able to run home to mommy and daddy when the going gets tough, be that a painful breakup, strep throat, needing to study when your roommates want to throw a party, etc.

Would you and your DH be OK with paying tuition, room, board and books for each child (at a mutually agreeable school, and/or up to a set limit), and they would have to earn the money for the transportation and "extras" (Greek life, general spending money, breaks, etc)?

These are all factors that might justify a modest financial stretch, but none of them strike me as important enough to go into serious debt over.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Great outcome! The reality is that most students can chose between a range of more and less expensive options of similar quality. There's this myth out there that "investing" in a more prestigious school pays off - but no student is choosing between Harvard and community college. The reality is choosing between similar options at difference price points.

I do disagree with some underlying ideas in this column. First of all, student loan deb IS still "good debt". Students who need to borrow should not be deterred from school. If the daughter needed to borrow to get her UMD education that still would be worthwhile, within limits. She will have income eventually, so it is not irrational to invest in future earning capacity as long as the debt load is reasonable.

Second, the parents may be doing a disservice by making her work over the summers to pay for books & incidentals. Summers can be key times for internships and travel, both of which can help landing jobs after graduation. If the parents could subsidize her summers that might really pay off.

I don't think student loan is "good debt" anymore. I mean, yeah, it's a proper use of leverage since it leads to an ROI, but student loan debt is also the only thing you cannot shed in bankruptcy.

If you are choosing between no college (or really bad college) and student debt, student debt is definitely still "good debt." A worthwhile college education should absolutely increase your earning capacity enough to handle a modest monthly loan payment. Student loans have appropriately helped millions of students get educations. There are many more nuances and outright fraudulent sectors (for profit colleges), but financing higher education with loans is a good option for many.

I agree with this, but only to a point. Many (too many) students are having to service debt amounts higher than their first year's salary. At some point, it makes little sense.

We intend to get our kids through undergrad without loans. If pressed, we may agree to some loans, but I would put a cap of say $20K total as the ceiling of what would be acceptable to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Question from reality- this happened to a good friend. Your child wants to be an engineer. Your child gets into GMU for Engineering but is wait listed in Engineering at Va Tech and is accepted to but receives no financial help from:

Renssalaer
Purdue
Embry-Riddle

Would you still only pay for Engineering at George Mason?

I would check out job placement stats for GMU. If grads get engineering jobs, then I would not help my kid to elsewhere for more $$$.

Those are fine schools, but you don't want to go into debt for them. MIT or Stanford sure, Caltech or Harvey Mudd. But these are really schools for folks who have the money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Question from reality- this happened to a good friend. Your child wants to be an engineer. Your child gets into GMU for Engineering but is wait listed in Engineering at Va Tech and is accepted to but receives no financial help from:

Renssalaer
Purdue
Embry-Riddle

Would you still only pay for Engineering at George Mason?

I would check out job placement stats for GMU. If grads get engineering jobs, then I would not help my kid to elsewhere for more $$$.

They don't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Question from reality- this happened to a good friend. Your child wants to be an engineer. Your child gets into GMU for Engineering but is wait listed in Engineering at Va Tech and is accepted to but receives no financial help from:

Renssalaer
Purdue
Embry-Riddle

Would you still only pay for Engineering at George Mason?

I would check out job placement stats for GMU. If grads get engineering jobs, then I would not help my kid to elsewhere for more $$$.

Those are fine schools, but you don't want to go into debt for them. MIT or Stanford sure, Caltech or Harvey Mudd. But these are really schools for folks who have the money.

The OP indicated that they could pay for the out of state and private schools but they would choose not to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Great outcome! The reality is that most students can chose between a range of more and less expensive options of similar quality. There's this myth out there that "investing" in a more prestigious school pays off - but no student is choosing between Harvard and community college. The reality is choosing between similar options at difference price points.

I do disagree with some underlying ideas in this column. First of all, student loan deb IS still "good debt". Students who need to borrow should not be deterred from school. If the daughter needed to borrow to get her UMD education that still would be worthwhile, within limits. She will have income eventually, so it is not irrational to invest in future earning capacity as long as the debt load is reasonable.

Second, the parents may be doing a disservice by making her work over the summers to pay for books & incidentals. Summers can be key times for internships and travel, both of which can help landing jobs after graduation. If the parents could subsidize her summers that might really pay off.

I don't think student loan is "good debt" anymore. I mean, yeah, it's a proper use of leverage since it leads to an ROI, but student loan debt is also the only thing you cannot shed in bankruptcy.

If you are choosing between no college (or really bad college) and student debt, student debt is definitely still "good debt." A worthwhile college education should absolutely increase your earning capacity enough to handle a modest monthly loan payment. Student loans have appropriately helped millions of students get educations. There are many more nuances and outright fraudulent sectors (for profit colleges), but financing higher education with loans is a good option for many.

Yeah, re-read what I bolded, OK? It's a proper use of leverage as a financial tool, but let's banish the phrase "good debt" from our vocabularies, shall we? There's no such thing.

[Anonymous]

Anonymous wrote:Question from reality- this happened to a good friend. Your child wants to be an engineer. Your child gets into GMU for Engineering but is wait listed in Engineering at Va Tech and is accepted to but receives no financial help from:

Renssalaer
Purdue
Embry-Riddle

Would you still only pay for Engineering at George Mason?

OP here - Purdue for engineering, maybe. Purdue not in the school of Engineering? No.