WWYD - need some advice

[Anonymous]

We are in the process of applying for colleges for DC1. Some background: We are immigrants, have lived within our means and continue to do so, have net worth of over $4M and current income over $350K. We want our kids to have the "best possible" education (we have 2) and can afford to send both to a top tier private but have no basis for determining if we should or not. It looks like most top schools run about 80K/year. That's about $320-350K for each kid once you factor in all expenses and by several objective measures, seems to guarantee excellent life outcomes. On the other hand, I read about public schools with similar outcomes albeit with differences in the college experience. We would save about $150K by sending DC1 to say a UVA vs a Harvard (neither one is guaranteed, I know but that's not the issue here).

DC1 (4.0 UW/1600 kid) wants to apply ED to a T10 school (T10 based on USNews rankings) which would increase chances of admission based on what we are seeing but it removes the opportunity to compare offers across schools. Tradeoff of course is the possibility of not being admitted. Wondering how we should frame our thinking so we make the right decision. I know the decision is ours but looking for factors that we should consider as we decide whether to ED or not.

[Anonymous]

I would have DC1 apply to the best school(s) that s/he wants to, and go to the best school admitted, regardess of cost.

In light of covid, you also want to take into account the financial/resource strength of the college your DC atttends. The music has stopped, so to speak, so get the best seat in the house.

I say all of this because you can swing the tuition. The cost will be noticeable, yes, but your family can provide the best education for both of your children.

And with DC's stats, s/he should go for it.

[Anonymous]

At your income level and assets, I would say follow DDs lead. I generally don’t recommend 80k for education per year but places like Harvard are the exceptions particularly if your DD meets the right person and the possibility of better network.

However if your DD decides on UVA, she’ll be a superstar and will have plenty of opportunities too. Many people dream to be in that situation.

[Anonymous]

What are the lower-ranked alternatives on the list where merit is possible and what are the ranges of their prices after potential merit, i.e. can you estimate merit? (Once in a while, Net Price Calculators can include a merit estimate.)

Or is the question your state flagship (UVA?) at full in-state price vs T10 full price? That would help narrow things down.

[Anonymous]

If you can live the retirement you've imagined, with sufficient cushion for unforeseen events, and still send them to top privates, then I would lean toward doing so.

How would the following scenario change your perspective on the spending: offer them the money. Whatever they don't spend on college, they can use after college for getting started (car, condo, seed money for a business, etc.). If you would be willing to do that, then it sounds like sending them to top privates would not create a significant burden on your retirement.

[Anonymous]

Offers? With finances like yours, your child will be considered full pay. I am not sure what the concern is. Apply ED to the school your child wants to go to above all others--if that is Harvard then do it. Your child can still apply to other schools, just not ED. If your child gets into H (or wherever he/she applies ED) they will be obligated to go. If they don't get in to H, then there will be lots of other options

Be sure your child understands all of the ramifications and go for it.

Good luck!

[Anonymous]

You have a net worth of four million dollars. If your kid gets into Harvard or Yale or Stanford or the like, you should pay for it. It’s worth it. The education, the networking, the connections, the resume panache, applying to grads schools - it’s worth the money.

Now, UVA in state vs Emory or Duke? I might choose UVA if the price differential is large.

[Anonymous]

Is it really ED and not SCEA? If so, I’d probably be price-sensitive unless I thought that the school was perfect for DC. I can only think of one or two ED schools where I could be convinced that it’s worth paying a premium/foreclosing alternatives to increase the odds of nailing down a place. Otherwise, with a kid who has great stats, I’d want to see all the options and compare.

[Anonymous]

In-State school for undergrad, then let them do graduate school any place they want to go.

[Anonymous]

HYP, Stanford, MIT, CalTech are all some version of EA rather than ED. Columbia, Chicago, Hopkins, Harvey Mudd, and Northwestern have ED.

[Anonymous]

Anonymous wrote:We are in the process of applying for colleges for DC1. Some background: We are immigrants, have lived within our means and continue to do so, have net worth of over $4M and current income over $350K. We want our kids to have the "best possible" education (we have 2) and can afford to send both to a top tier private but have no basis for determining if we should or not. It looks like most top schools run about 80K/year. That's about $320-350K for each kid once you factor in all expenses and by several objective measures, seems to guarantee excellent life outcomes. On the other hand, I read about public schools with similar outcomes albeit with differences in the college experience. We would save about $150K by sending DC1 to say a UVA vs a Harvard (neither one is guaranteed, I know but that's not the issue here).

DC1 (4.0 UW/1600 kid) wants to apply ED to a T10 school (T10 based on USNews rankings) which would increase chances of admission based on what we are seeing but it removes the opportunity to compare offers across schools. Tradeoff of course is the possibility of not being admitted. Wondering how we should frame our thinking so we make the right decision. I know the decision is ours but looking for factors that we should consider as we decide whether to ED or not.

Do you mean compare financial aid offers from schools? you won't get any. not with your income/net worth. You will be full pay for private, count on that. So make any decisions about EDing a T10 school accordingly. If I had your resources it would be a no-brainer, I'd encourage my kid to go to school that was the best fit. Just be sure you understand the difference between ED and EA when your kid applies.

[Anonymous]

I had a similar situation last year. ED high rates of admission are partly due to self selection for excellent fit. Don’t do it just for “better chances”. Apply EA to your state flagship, MIT, UChicago, Georgetown and whoever else has an interesting program but no early restrictions. See what acceptances DC gets, crooks off some schools, and apply RD to remaining Ivies+ . High stats kids still get accepted RD to Ivies. You may get a merit scholarship to your state flagship (UMD) and then in spring you weigh pros and cons of program vs. $$ saved for grad school. In 6 months, your DC’s #1 choice may end up being very different than you think now. You goal right now is to maximize good options to choose between later.

[Anonymous]

Cross off

[Anonymous]

I think its a discussion you need to have with your kids. We don't have that kind of income but our logic is state school and pay for graduate school as our goal is no loans. It also depends on the major/career field with school choice. For a doctor, big law lawyer, business a top school is far more important.

[Anonymous]

Re grad school. I think what parents are generally talking about when they use that term are professional schools (law/med/business). PhD programs should be free (and provide an income in exchange for teaching and/or research assistance). Don’t save money for them.

I don’t know where parents come down on Masters degrees in credentialed fields (e.g. teaching, nursing, engineering, PT).

At any rate, if the deal you’re making is public for BA and serious $ for post-grad, be clear upfront about what advanced degrees you are willing to subsidize (MFA?).