Paying for top schools?

[Ricochet]

I have a few questions about how people pay for Ivies, or why they even attend undergrad programs at expensive schools. I've always been told that undergrad degrees are basically all the same, and I'm sure there's some difference between a degree from a top-tier school and a lower-ranked school, but is it really worth the ridiculous expenses to earn a 4-year degree at a top school?

Also, if I were to be admitted to a top school, and I was able to display sufficient need for financial aid, how much would the aid package help me? Do they usually last for all four years at the school, or just the first?

[Ricochet]

Anyone?

[James]

You're asking a hypothetical about a hypothetical, so it's hard to answer. Can you give us some details (even if they're not yours) so we can offer you somewhat concrete feedback? In particular, a ballpark for family income would be helpful.

[mickeymouse]

To add to what James said, you need to give some parameters for anyone onn this forum to help.  For example, Harvard states they will meet the complete needs for anyone with a family income less than $80,000 (I think) and the family contribution will not exceed 10% for those whose income is less than $180,000.  Other schools use a $60,000 cut off or a criteria that limits the student loans that a person has on graduation.

Are all undergraduate degrees the same, no. There are differences, but are differences significant?  It could or could not be.  University of California Berkeley is generally the top ranked public school  and if you are California resident, UCB is a very good choice as the costs are lower and you get a good education and good brand name.   For out of state, it may or may not make sense.  So everything is relative.

[daveg]

It really depends.  There was a study done by Fortune Magazine that concluded it did not matter if you went to an Ivy or state school in terms of total compensation after seven years in business.  The comp for an Ivy grad versus a state school grad was essentially the same by the seventh year.
Gradunating (undergrad) from a top school will be an advantage in landing a job and will also result in a higher paying starting salary, in most cases.  However, its really up to the individual to develop a compelling professioanl value proposition that will support compensation growth and corporate advancement.
In business, where you went to grad school is generally more relevant. 
I do think you need to look at college as an investment.  Evaluate what you're getting for the money.  Name and image have some value, but all to often students (and mostly parents) place too much emphasis on where as opposed to what and why.
Debt is not a good thing.  If you graduate college with $100K in debt you need a pretty high paying and stable job to cover your payments.  I'm not trying to be a downer on this, but college is an investment and should be looked at as such.
This was written by a parent of a son who's considering a number of $50K plus schools------I guarantee he'd disagree with me.

[AnagramPanda]

It really depends. Financial aid at elite schools is usually pretty good, but then they lack merit aid. Going to a good school really matters in certain fields, and couldn't matter less in others.

[RB]

It is a good idea to do the calculation of "Expected Family Contribution or EFC"; some Ivy league universities have their own calculator; they may make it financially worthwhile gaining admission.

In these economic times, it may be prudent for families to adopt a simple rule of thumb with respect to college debts - say the total debts at the time of college graduation to be less than X % of student's first year's net (not gross!) expected salary (30 - 40% perhaps?). Many state universities provide excellent values for residents (ex. CA, TX, NC, VA, MI, WA, IL & quite a few others).

Assuming that a student is expected to meet certain on going requirements (GPA,  proficiency in some sports or arts etc.), if the colleges can not guarantee a set amount of grants / scholarships for the entire 4 years of study, then it becomes a guessing game - whether one can really afford an education from that college.

One may have to rely on historical data as presented on some web sites. US News has one for colleges that leave students with least debt:

http://premium.usnews.com/best-colleges/national-least-debt

Here is another link that may be of help.

http://www.payscale.com/best-colleges/top-colleges.asp

However it is very difficult to put a monetary value on satisfaction derived from attending a college where the undergraduate classes are taught by top notch professors and  where the students have opportunities to be intellectually stimulated in the company of bright fellow students, and develop lifelong friendships & contacts.

Written by RB's Dad

[CollegeGal09]

That's a question better answered by your institution's financial aid department.

[Ricochet]

Wow, thank you all for the detailed responses 

I estimate my family income to be under $50,000 on paper (my mom's boyfriend does support us well, but they are not married), so I can see myself applying for a lot of student loans. My first choice is UVA. It costs around $10,000 for in-states like myself, less than half of the out-of-state tuition. I really don't anticipate that many problems paying such a reasonable price for such a great school. However, I want to ascertain whether I could pay for any of my reach schools, namely Duke and UPenn (both $40K+ a year), if I received financial aid from them, or if I'd still be majorly in the hole after 4 years 

In terms of an investment for the future, UVA is nearly unbeatable to my knowledge. It's one of the best public institutions in the US, and for 10K a year, definitely worth it.  I'm just wondering if the aid I could receive would make private institutions good investments as well. Thanks!

[Ricochet]

Oh, and I forgot to mention, my undergrad degree will probably be premed or engineering.

[James]

Penn claims they will meet 100% of demonstrated financial need: http://www.sfs.upenn.edu/paying/paying-pro-need-based-aid.htm

Duke also claims the same: http://dukefinancialaid.duke.edu/undergraduate/basics/award.html

The devil is always in the details. Some schools (Yale and Harvard, perhaps others) are very clear about who will pay what: they have definite cutoffs and formulas that will let you determine, more or less, what you would pay. Duke and Penn are more vague.

In the end, the only risk in applying to Penn and Duke is that you will have to pay the application fee and spend some time writing essays (perhaps modifying your UVA essay?).

UVA is a well-regarded institution, but exploring your options is completely reasonable. I would suggest that you explore a couple of different colleges before making a decision even if you had a guaranteed admission at Harvard.

[ruslanchik92]

Regarding myself, there's absolutely no way I'm going to a top notch school or University with high tuition since I'm going with pre-med and want to save some money for Medical School....People who major in something else, most likely have a different situation. New York helps too.... What matters is how well you prepare for MCAT and as a result do on it..... This only relates to Pre-med and this is the way how i look at it!!!!!Please chance me and I will return the favor