UMD system faces 500M budget shortfall in 2021

[Anonymous]

https://wtop.com/education/2020/09/usm-prepares-for-500m-budget-shortfall-in-2021-plans-may-include-layoffs/

Here it comes...the economic fallout of the pandemic in the UMD system.

I wonder how this problem will impact the system's offerings and the student experience.

[Anonymous]

Wow scary!

[Anonymous]

We knew this was coming. It’s why we prepaid for 4 years of tuition in August for our baby. Universities - public and private - will pass on the costs of COVID onto the students/families rather than tightening the belts. The burden will fall mostly on young people, which is sad but entirely predictable.

We paid $47K out of pocket last month. In 18 years, I can easily see UMD costing $80K for four years at in-state tuition rates.

[Anonymous]

Anonymous wrote:We knew this was coming. It’s why we prepaid for 4 years of tuition in August for our baby. Universities - public and private - will pass on the costs of COVID onto the students/families rather than tightening the belts. The burden will fall mostly on young people, which is sad but entirely predictable.

We paid $47K out of pocket last month. In 18 years, I can easily see UMD costing $80K for four years at in-state tuition rates.

zero chance any governor would let that happen

[Anonymous]

Anonymous wrote:We knew this was coming. It’s why we prepaid for 4 years of tuition in August for our baby. Universities - public and private - will pass on the costs of COVID onto the students/families rather than tightening the belts. The burden will fall mostly on young people, which is sad but entirely predictable.

We paid $47K out of pocket last month. In 18 years, I can easily see UMD costing $80K for four years at in-state tuition rates.

We did the prepaid too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We knew this was coming. It’s why we prepaid for 4 years of tuition in August for our baby. Universities - public and private - will pass on the costs of COVID onto the students/families rather than tightening the belts. The burden will fall mostly on young people, which is sad but entirely predictable.

We paid $47K out of pocket last month. In 18 years, I can easily see UMD costing $80K for four years at in-state tuition rates.

zero chance any governor would let that happen

Sorry, I should have been clearer. $20K per year, for a total of $80K for a four year education in 2038.

UMD is currently around $11.5K. No way in hell it remains that low. Rate of tuition increases at UMD has been fairly low compared to other public systems.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We knew this was coming. It’s why we prepaid for 4 years of tuition in August for our baby. Universities - public and private - will pass on the costs of COVID onto the students/families rather than tightening the belts. The burden will fall mostly on young people, which is sad but entirely predictable.

We paid $47K out of pocket last month. In 18 years, I can easily see UMD costing $80K for four years at in-state tuition rates.

zero chance any governor would let that happen

Sorry, I should have been clearer. $20K per year, for a total of $80K for a four year education in 2038.

UMD is currently around $11.5K. No way in hell it remains that low. Rate of tuition increases at UMD has been fairly low compared to other public systems.

I guess screw kids whose parents didn’t do a prepaid! (I did)

[Anonymous]

Just know the room and board is more expensive at UMD then tuition so make sure you are saving for that too (unless you live close). My DD got a full tuition scholarship but we still pay more than half the full amount.

BTW..what happens to those pre-pays if your kid get merit aid?

[Anonymous]

Anonymous wrote:Just know the room and board is more expensive at UMD then tuition so make sure you are saving for that too (unless you live close). My DD got a full tuition scholarship but we still pay more than half the full amount.

BTW..what happens to those pre-pays if your kid get merit aid?

UMD allows you to apply difference toward room & board, other qualified expenses, etc.

For example, STEM majors have supplemental fees that are not covered by the pre-paid tuition plans.

[Anonymous]

Yup. Prepaid for for each kid many years ago after an article in Money magazine. The prepaid is guaranteed by the MD state legislature and money is kept aside in each budget..

[Anonymous]

What happens if you choose to go to a less expensive state school like Frostburg (or do not get in to College Park) what happens to the difference?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We knew this was coming. It’s why we prepaid for 4 years of tuition in August for our baby. Universities - public and private - will pass on the costs of COVID onto the students/families rather than tightening the belts. The burden will fall mostly on young people, which is sad but entirely predictable.

We paid $47K out of pocket last month. In 18 years, I can easily see UMD costing $80K for four years at in-state tuition rates.

zero chance any governor would let that happen

Sorry, I should have been clearer. $20K per year, for a total of $80K for a four year education in 2038.

UMD is currently around $11.5K. No way in hell it remains that low. Rate of tuition increases at UMD has been fairly low compared to other public systems.

I guess screw kids whose parents didn’t do a prepaid! (I did)

The jury is still out on whether prepaid is a better investment than the 529. Check back 18 years to see whether tuition inflation was more or less than investment gains.

[Anonymous]

Anonymous wrote:What happens if you choose to go to a less expensive state school like Frostburg (or do not get in to College Park) what happens to the difference?

I'm pretty sure it just covers the tuition at whatever school you get into. You don't receive the excess of you go to a less expensive school.

If you go out of state, they pay the average tuition of all of the Maryland colleges (so less than UMD tuition).

[Anonymous]

Anonymous wrote:We knew this was coming. It’s why we prepaid for 4 years of tuition in August for our baby. Universities - public and private - will pass on the costs of COVID onto the students/families rather than tightening the belts. The burden will fall mostly on young people, which is sad but entirely predictable.

We paid $47K out of pocket last month. In 18 years, I can easily see UMD costing $80K for four years at in-state tuition rates.

Dontt forget your 18 years of missed earnings growth + missed 529 tax credits.

[Anonymous]

Peace of mind but not necessarily the bext financial choice.