But let’s face it: the cost of a college education these days ranges from expensive to obscenely expensive. So the decision is likely to be tougher and more emotional than most parents and children imagined as they weigh offers from colleges that have given real financial aid against others that are offering just loans.
While some students will be able to go to college only if they receive financial aid and others have the resources to go wherever they want, most fall into a middle group that has to answer this question: Do they try to pay for a college that gave them little financial aid, even if it requires borrowing money or using up their savings, because it is perceived to be better, or do they opt for a less prestigious college that offered a merit scholarship and would require little, if any borrowing? It’s not an easy decision.
“It’s not just the sticker price and the net costs,” said Sarah Turner, professor of economics and education at the University of Virginia. She added, “How likely is it that you will get into medical school or law school or have some other opportunities” if you choose the more prestigious college?
That’s the rational argument. In these decisions, though, emotion often wins out, and it can lead to the slippery slope of excessive borrowing.
“Families really need to look realistically at what they can afford,” said Lynn O’Shaughnessy, author of “The College Solution” and a blog of the same name. “Sometimes, they’ll look at a package and say, ‘It’s not enough, but we can sacrifice and send our children to the school they really want to go to.’ They have to realize this a four- to five-year commitment.”
Ms. O’Shaughnessy said she was trying to counsel a father in New Jersey who was on the verge of making a horrendous financial decision. His daughter had received a full scholarship to attend Rutgers University but her first choice was New York University, which, even with financial aid, would cost the family $32,000 a year. The father, an engineer who was also out of work, said he was going to send her to N.Y.U.
“I can’t even believe he’s considering it,” she said. “I was floored. It’s irrational.”
But, unfortunately, that father is not so unusual. While it is hard not to give our children what they want, here are some ideas on how to think about this financial dilemma without going broke — or at least know why you will be broke.
The competition to get into top colleges is fierce in many cities and towns in America, but nowhere is it more so that at the country’s elite institutions. And many parents feel compelled to reward all that hard work.
The debate between paying full tuition at an elite institution or accepting a merit scholarship from someplace less prestigious “is a conversation we have all the time,” said James Conroy, chairman of post-high-school counseling at New Trier Township High School in Winnetka, Ill., an affluent suburb in Chicago. “It’s a tough conversation because what it gets down to is the values of the family.”
But he said many parents did not realize that their children were going up against other children who were identical to them — at least on paper. “There are 100 schools that we talk about in this office day after day after day,” he said. “But those are the same schools that every New Trier across the country talks about.”
Prestige has always been part of the equation, but he said he had expected parents to start looking for value in colleges after the 2008 financial collapse. Instead, parents have come to see the elite universities as the only way to give their children a chance at success. They feel jobs are hard to come by and companies are only going to look to hire at the elite universities.
“Whether it’s true or not, I have no evidence,” he said. “But that was what was out on the bongo drums in the community.”
Article source: http://www.nytimes.com/2013/04/20/your-money/measuring-college-prestige-vs-price.html?partner=rss&emc=rss
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