OT- College Financing (kind of long)

[chinamigarden]

All things being equal (i.e playing ability and academics) - if a girl does not need any money because her family finances are strong does that give her a leg up over a girl that does need financial support of some sort whether D1,2 or 3?

probably not. Colleges are big on diversity. If they can show that they draw kids from every economic sector it makes them look better. so a kid whose family can afford college vs one who needs aid, it balances out. They have a big pot of aid cash, they are going to spend it. In the end it doesn't matter to the school who it goes to (in regards to sports) its going to be used..

 

[jacketsfan]

Itsabouttime - a couple of things:

D3 academic money is academic money. Not saying it doesn't happen, but theoretically it is purely based upon the academics of the strudent, and has nothing to do with whether they play sports or not. One word about that, though - it is a subjective process, and sometimes students with lesser academics get more money.

As for financial ability - In most cases, I don't think it matters. In some cases, it may, though. If your DD qualifies for some academic award at a D2 or D1, then that is less athletic money they have to offer her, and therefore more athletic money to offer others. I think this is a case-by-case deal.

I have never, though, had a coach ask me if my player's family could afford it. Those conversations only revolved around academic scholarships.

 

[jacketsfan]

Also to clarify - often, schools with little or no athletic money to give can use academic money to even the playing field, if the player has the grades.

 

[YOCOACH]

Something to look into. There is a federal program that pays 100% of the tuition, books, room and board. The catch? The student then has to work for the same number of years paid for in their field at a designated facility. A friend's DD went to a local U under this program for nursing. Upon graduation, the government found her a nursing job at the University's Medical Center/ Hospital. When she gets out of her indentured service, which she gets paid well for, she has the option to stay on at the hospital or relocate. I don't know the name of the program but if you're interested, PM me and I can ask my friend for you.

 

[obbay]

Given the state of the economy and job market, that sounds like a Win-Win!

I know too many people that after paying $30K/yr, now have an unemployed college graduate living at home

 

[YOCOACH]

Given the state of the economy and job market, that sounds like a Win-Win!

I know too many people that after paying $30K/yr, now have an unemployed college graduate living at home

Yes. My friends DD says it's the best decision she ever made. Not only was school paid for but she was guarenteed a good paying job upon graduation. After another year, she has the choice of staying and continuing to work there or she can move somewhere else with at least 4 years experience under her belt.

 

[livingontheroad]

Pet peeve of mine. College cost went up 10x in last 20 yrs, while inflation was only 3x. This is entirely due to making loans to anyone and everyone to attend college, whether or not they could pay money back. This is why the banks got the legislation passed that excludes student loans from being discharged in bankruptcy. Once again, the banks have SCREWED you more than the average person realizes. In the last few yrs student loans were the only kind of consumer credit STILL GROWING too, out of necessity. Everything else contracted.

You should have been planning how to send your kid to college since the day they were born. In state doesnt cost that much (relatively speaking) especially if the student works too and can contribute a few thousand per yr while also paying car insurance, etc. Unfortunately , most families did not plan or save, and have always lived well beyond their means as well. Their recourse is to take out loans, which should be avoided as it only propagates the whole problem.

I honestly dont know who is stupid enough to borrow $50,000 per yr today to send their kid to college. It is ridiculous. Go to a state school with total cost of $15000/yr, have the kid work for $5000 or so, and have parents throw in $10,000 and get a degree with no debt. We have too many education majors graduating with $150,000 debt that they can NEVER pay back, they can barely pay the interest on it.

And if you think "real" college is expensive, try the for-profit "ITI technical" type of schools. 2 yr degree, $50,000 fees. More than a real college. Difference is their customer base is generally over>24, not dependent on parents income to qualify for financial aid, so they qualify for tons of goverment money. They exist only to funnel that money to the schools with a graduation rate of about 15%. They are basically just a scam.

Getting your kid a degree without leaving them saddled with debt = to a house is the best gift you will ever give them.

 

[obbay]

You should have been planning how to send your kid to college since the day they were born....Go to a state school with total cost of $15000/yr, have the kid work for $5000 or so, and have parents throw in $10,000 and get a degree with no debt.

Since my first daughter was born, I've been wrestling with the whole concept of college education. The prices had skyrocketed and I was looking (in vain) for the increase in value. all the kids that I see in the workplace who are fresh out of school, don't know anything about what they're doing. they all need to learn on the job. it's an awfully big investment just to produce an inexperienced but well-rounded adult. Hopefully they learn the tools for success along the way.

What I have found is that if you had been saving for your kids to go to college since the day they were born, you'd be in for a rude awakening. It is no longer possible to save for a college education. I had invested a little over $15,000 in a long term, stock related savings plan for my kids back in 1999. today it's value is about $8,000. in my neck of the woods, the 529 plans are run by the same people who finance college loans. A 529 is guaranteed to get 100% sucked into school and work against you when calculating your need for financial aid. so you will wind up needing a loan. so the 529 people get your money while you are "saving" and again when you need a loan.

A $15,000 school isn't an option for everyone. I want my kids to learn to live away from home and if I want to pay only $15 K they will be living at home. A benefit to Private Schools is they usually have a strong network of alumni who can provide better employment opportunities to recent graduates. I'm looking for schools with a better Return on Investment and/or who show a lower rate of debt carried by their graduating students.

Another benefit to private schools is they have larger endowments and it is sometimes cheaper to go to an Ivy league school than a state school. For the about the next 4 years, all students who qualify for Financial aid at (I think it's these 4) Harvard, Princeton, Yale and Penn will have their needs met with "free money" - no loans, all grants. graduating with zero debt. (this is due to them not allocating enough of their endowments to maintain their non-profit status so they are doing this to compensate).

At the end of the day, I originally posted this because I know everyone on this board has kids who they expect will go to college. I don't mean to infer that you should take financial advice from a softball board, but rather talk to a financial advisor who specializes in college financing. They frequently hold free or low-cost seminars that can be a real eye-opener. Maybe you'll get a SB Scholarship, and that's great! I cannot count on that.

good luck to all of us!

 

[chinamigarden]

College debt is also about expectation. I have seen kids get degrees that have no associated career track, and struggle to pay the debt off. You shouldn't be borrowing money to learn about Art History and then be surprised when you can't make enough money with your chosen degree to pay for the degree. Another issue I see is the desire to have it all, right now. I know kids who graduate with a good degree, find a great job, buy a much bigger house then they need, get 2 very nice vehicles and then complain about how much the college loan costs them. There is no such thing as a starter home anymore, too many kids want a house as big or bigger then the one mom and dad own. Forget about the fact that its the parents 3rd house and they worked up to it, the kid wants it now. No one with a 3500 sq foot house should be complaining about the college debt they incurred. My kids will in some way pay for their own degree. My son will have a total of $5,000 in debt after his first year. All the rest of the cost he is paying in some way, either through scholarships he earned and money he earns. At the end of his degree, he will value it. It will mean something to him.

Don't get me started on kids who use student loans to pay for big apartments, and a car. Thats another way to drive up debt that has no benefit in the actual degree.

 

[Amy in AZ.]

We invested in savings bonds, through my husband's employer. It worked out very well. I just looked at doing this for the grandbaby and found that the bonds don't mature for 20 years, now. That is awful.

My son that went to the U of Chicago, had academic scholarships. It is very important that the HS kids take AP classes and keep nearly a 4.0, their entire HS career, if they hope to attend a major private university. A majority of his friends at this very large university, were from wealthy families that cared little how much tuition was. And these types of universities are not hurting for students.

The advice about reducing how much money is in a student's name, was very good advice. Where the FAFSA is concerned it is better for the student to have zero in the bank. Spend the money on a car, if necessary. My son worked by being a residence hall advisor. Guess what the school did? They reduced his award, by the amount of the salary.

He didn't play sports, but we talked a lot about his friends that did. They were at this very competitive university and still putting as much time in on their sport, as students at major D1s. And they were paying $20,000 to $40,000 a year in tuition.

His education worked out well for him, but he was driven to be the best. The students that are tops in their class almost always get the top jobs. My niece that wanted to be an RN, was able to get a job, right away, too. I wish that my DD would go that route.