(Not) Keeping Up With Our Parents: The Cost of a College Education
Posted by Lynnae on April 28, 2008
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The third chapter of (Not) Keeping Up With Our Parents is about college costs.
This is the third part in my series on the book (Not) Keeping Up With Our Parents by Nan Mooney. Be sure to catch up on the first and second parts if you missed them!
If you’ve read parts one and two of my series on (Not) Keeping Up With Our Parents, you know that so far I have disagreed with the author on many of her points thus far. Not so with Chapter 3: College Promises.
Most college students today leave college with huge amounts of debt. Debt that can’t be paid back on the meager salaries of a liberal arts education. We tell our children that they must have a college degree to succeed. We tell them to pursue their interests and dreams, and they will succeed.
This can be true if a student’s interests lead to a high paying career. But if a student is more interested in becoming a teacher or social worker, paying back the loans for a college education will be next to impossible, especially if a person is trying to raise a family at the same time.
In an ideal world, college educations will become less expensive. If we expect kids to go to college, we have to find a way to make it affordable. Until that happens, there are a few things we can do to minimize the amount of debt students go into for a college education.
Educate High School Students
Before a child sets foot on a college campus, they need to be well versed in the dangers of credit card debt. They need to know the difference between subsidized loans and unsubsidized loans. They need to know that a salary of $35,000 a year isn’t going to pay for student loans in excess of $100,000.
Since most high schools don’t teach personal finance, parents, it’s up to you. If you don’t know anything about personal finance, it’s time to learn. And believe me, you can learn. I knew nothing about personal finance when I got married, and though I’m not an expert now, I know a whole lot more than I did back then.
High school students should also work with their guidance counselors to apply for college scholarships. There are a lot of scholarships out there, and some students will be able to make a big dent in college costs by using scholarships.
An Expensive College Does Not Equal a Higher Salary
Many students dream of going to expensive Ivy League schools. I have no doubt that Ivy League schools offer superb educations. But are the educations worth the thousands of dollars in debt a student will accrue? I don’t think so. I don’t want my children to pay for four years for the rest of their lives.
I’m going to encourage my children to start their college educations at a junior college. It’s much less expensive than a university, and my kids will have more freedom to experiment with what interests them.
I went to a four year college right out of high school. I had some scholarships and loans, and I worked part time, too. I also knew I could only afford four years of college. Halfway through college I considered changing my major, but I stuck with sociology, because I knew a change would mean an additional year of school, and I couldn’t afford it.
By attending a junior college, I could have experimented with different classes before paying the big bucks for university. I could have entered the university with a better idea of what I wanted for my future.
Consider Taking Longer to Complete Your Degree
My husband took the 9 year plan in completing his B.A. He had a few student loans, but not much to speak of. That’s because he attended college part time for a while and took breaks in his education to work full time. Basically, he paid for school as he went. Not a bad plan, if you ask me.
These are just a few ways you can minimize the amount of student loans your children take out. Until our education system gets an overhaul, we have to deal with the high prices of college the in best way we can.
Parents, please please educate your children on student loans…interest, repayment terms, what is affordable. Unlike other debt, a student loan will stick with you for life. If you get in over your head, student loan debt is not covered under bankruptcy. Please make sure your child is well equipped to make good financial decisions.
Do you have any suggestions for reducing the need for student loans?
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22 Responses to “(Not) Keeping Up With Our Parents: The Cost of a College Education”
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I am not a financial expert. I'm just a wife and mom doing the best I can to live a frugal life and get out of debt. Like any human, I make mistakes. I write this blog out of my own experiences, and nothing I write should be taken as expert advice. If you need financial advice, please consult a professional.
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You mentioned that you believe a more expensive college is rarely worth the extra cost, and suggest a junior college instead. I have to disagree, to some degree. It often depends on what field you end up, and although it’s not necessarily true the more you pay, the better the education/school, but it’s more about the school’s reputation. Having worked in recruiting and having a doctorate, I’ve seen some of the relevant issues. A better school actually often does equal a better job, or a better grad/medical/law school, which then puts you in the running for a higher salary at the best hospitals and law firms. I’m not saying this applies universally, but it’s something to consider.
I think you’re right about this. While some people may look at the school where you were educated, I would hope that most people would look at the actual education (what you learned) as being more important. I went to a junior college (but didn’t go on), and think I got a great education. It was a smooth transition from high school, because it was still small enough that teachers knew who you were, and not just a body in a seat. I also got a full-tuition scholarship because of a high ACT score, so only had to pay for books and stuff. The only down-side I saw of it was that many of the scholarships at the four-year schools only applied if you went there all four years.
My husband (a teacher w/a Master’s degree and $25K in student loan debt) is thinking about getting his doctorate degree (and acquiring another $35K in student loan debt to do it). I don’t think it’s financially worth it, but we’ll see. My biggest concern is that since he’s already consolidated his current student loans, he won’t be able to get that super-low interest rate on future student loans, but I’m not sure about it. I’d like to get out of debt first, and/or pay for future education outright, but he’s not wanting to wait that long. I just don’t think the increase in pay will be worth the cost, although having a doctorate would open more doors than having a master’s.
Very interesting post. I went to an expensive, private college, went into a low paying profession, and now nine years later I’m still buried under school debt. My fiance sometimes gets down on himself because he did not go to college. Here’s the thing: He went into the military and then the police academy. He now has a job that pays a lot more than mine, has a great pension, and he has no school debt. Different things are right for different people, and that worked for him.
That being said, knowing what I know now, I probably would have chosen a less expensive state school if I had realized what my post-college salary and student loan payments were going to be.
This was interesting. In some fields, the school might not matter, but for mine, it was definitely a huge boost. My degree is from one of the best colleges for my field and my employer has flat out told me that the name of my school on my resume was a big factor in being selected for an interview, and I have a feeling that that will be the case wherever I go next. In some professions, the name of the school does carry a certain prestige and opens doors. Additionally, the alumni network from my school is amazing. I feel like the amount of money I took out in loans was worth it for the benefits I am still reaping.
That being said… I am saving up for grad school in a way I never did for undergrad. While I’ll probably still have to take out some money in loans, it is going to be a lot less and I am taking some classes at a local, cheaper school before applying rather than having to take it once I am in a degree program and paying $1000/credit.
Interesting post Lynnae! I’m split on some of the points you raise.
My first point: I paid for five years of college (double major) entirely by scholarships. NO DEBT!
My second point: The community college issue hit me like a red flag. Community colleges should be looked at as a tool–but don’t go to one of you’re unsure of what to do. You must be “on top of it,” otherwise your experimenting and such will end up costing you more in the long run. Also, don’t be afraid to experiment with concurrent enrollment. I took several CC classes while in my senior year of high school. Due to timing constraints, I ALSO took a course during my second year at my state school and transfered it to my 4 yr. university, no problem.
These opportunities enabled me to experiment without wasting too much time (time to degree is rising past the typical 4 years and into 5 or 6).
My third point: State schools are typically more hands-on than another 4 year university with more name-appeal (I’m thinking CSU vs. UC system). This hands on experience translated to me working 3 different jobs in college, which all looked FABULOUS on my curriculum vitae for grad school (I’ll be beginning my Ph.D. in the Fall–all paid for by fellowships and grants for my research, all related to my job experience).
My fourth point: Be prepared. Have essays already drafted (scholarship committees LOVE essays) of your intent and purpose for continuing your education and why XXXXX scholarship should go to you. Also, make personal connections with your professors. This way, when you find out about a scholarship that is due in two days, you’re ready for it with a minimal amount of stress and work.
My fifth (and last!) point: Websites like FastWeb.com didn’t do a thing for me. Go to your financial aid office and ask for a listing of the SCHOOL scholarships–these “seemingly measly” $200 awards add up! Also, make connections with your department chair–that way, when there is a scholarship available for a student in your particular major, you will be in the running.
All tried and true tips–they work! Hope this helps! God Bless!
I so agree about being educated about the dangers of credit card debt and student loans. My husband and I were both the first of the children in our large families to attend college, and both of us kind of bumbled our way through, making a lot of costly mistakes that could have been prevented with someone who’d been that road simply sitting us down and apprising us of these things.
We also ‘waited’ over a year longer than we wanted to get married, thinking being single and poor would allow for better scholarships and financial aid. NOT SO! My husband was in his 5th year of college when we finally married, and I was in my 3rd, and our last couple years of college were practically free in comparison to the first (and this was a private liberal arts college in the Midwest). We could have saved $28,000 on our collective educations had we married a year earlier as we’d wanted to.
Keeping a stellar credit record is VERY important as a college kid if you ever want to own a home.
If a person plans on becoming a teacher or an educational administrator, it must also be considered that further education will become necessary eventually. Most school districts require all kinds of additional courses to keep ‘current’, and often set their pay scales so that the hard-earned Master’s degree you thought would be so beneficial financially doesn’t put you in the highest pay scale, but a Master’s degree plus 15 additional credits.
And it can never be stressed enough that frugality is necessary if one is to get through college without major financial setbacks. Fancy new furniture, shiny new cars, and other ’stuff’ can wait. Living frugally doesn’t have to mean living ‘poor’. We lived on very little those first few years of marriage, and lived well. We had a large social circle and entertained a lot in our home, and because we were hospitable it went a long way towards making our ’shabby chic’ welcoming and inviting, and kind of a ‘hub’ among our friends, though we didn’t have two spare dimes to rub together in those days.
I so agree about being educated about the dangers of credit card debt and student loans. My husband and I were both the first of the children in our large families to attend college, and we both bumbled our way through, making a lot of costly mistakes that could have been prevented with someone simply sat us down and apprised us of these things.
We also ‘waited’ over a year longer than we wanted to get married, thinking being single and poor would allow for better scholarships and financial aid. NOT SO! My husband was in his 5th year of college when we finally married, and I was in my 3rd, and our last couple years of college were practically free in comparison to the first (and this was a private liberal arts college in the Midwest). We could have saved $28,000 on our collective educations had we married a year earlier as we’d wanted to.
Keeping a stellar credit record is VERY important as a college kid if they want to own (and keep) a home.
If a person plans on becoming a teacher or an educational administrator, it must also be considered that further education will become necessary eventually. Most school districts require all kinds of additional courses to keep ‘current’, and often set their pay scales so that the hard-earned Master’s degree you thought would be so beneficial financially doesn’t put you in the highest pay scale, but a Master’s degree plus 15 additional credits.
And it can never be stressed enough that frugality is necessary if one is to get through college without major financial setbacks. Fancy new furniture, shiny new cars, and other ’stuff’ can wait, and getting the most out of every dollar you make is essential.
Living frugally doesn’t have to mean living ‘poor’. We lived on very little those first few years of marriage, and lived well. We had a large social circle and entertained a lot in our home, and because we were hospitable it went a long way towards making our ’shabby chic’ welcoming and inviting, and kind of a ‘hub’ among our friends, though we didn’t have two spare dimes to rub together in those days.
I so agree about being educated about the dangers of credit card debt and student loans. My husband and I were both the first of the children in our large families to attend college, and we both bumbled our way through, making a lot of costly mistakes that could have been prevented with someone simply sat us down and apprised us of these things.
We also ‘waited’ over a year longer than we wanted to get married, thinking being single and poor would allow for better scholarships and financial aid. NOT SO! My husband was in his 5th year of college when we finally married, and I was in my 3rd, and our last couple years of college were practically free in comparison to the first (and this was a private liberal arts college in the Midwest). We could have saved $28,000 on our collective educations had we married a year earlier as we’d wanted to.
Keeping a stellar credit record is VERY important as a college kid if they want to own (and keep) a home.
If a person plans on becoming a teacher or an educational administrator, it must also be considered that further education will become necessary eventually. Most school districts require all kinds of additional courses to keep ‘current’, and often set their pay scales so that the hard-earned Master’s degree you thought would be so beneficial financially doesn’t put you in the highest pay scale, but a Master’s degree plus 15 additional credits.
And it can never be stressed enough that frugality is necessary if one is to get through college without major financial setbacks. Fancy new furniture, shiny new cars, and other ’stuff’ can wait, and getting the most out of every dollar you make is essential.
Living frugally doesn’t have to mean living ‘poor’. We lived on very little those first few years of marriage, and lived well. We had a large social circle and entertained a lot in our home, and because we were hospitable it went a long way towards making our ’shabby chic’ welcoming and inviting, and kind of a ‘hub’ among our friends, though we didn’t have two spare dimes to rub together in those days.
Great tips. I went to a 2 year community college and then transfered to a local university with a good reputation. It saved a lot of money. I worked while going to school and stayed at home with my family for the first couple of years. By paying my mom rent (single parent), I was able to help the family out and learn some financial independence. I also saved money which helped out a lot.
Unless the university has a horrible reputation, where you go doesn’t factor for employment for most cases. I can understand if you’re working in a competitive field in a competitive area. Otherwise, ignore the hype and high costs.
These are some really good points!
I think it’s always good to research your options. My brother is an engineer and there is one college in our state that is well-known for engineering. My brother went down to the college for his first year and then found out that they were doing an engineering program at the local community college where they brought professors up from the well-known college. He transferred and saved a TON of money and still had the well-known college’s name on his diploma!
Unfortunately America has gone from producing products to producing debt. College education is playing right into that.
As far as community college, I disagree to a point. If you can go to an Ivy League school the connections you make and job opportunities it opens up are invaluable. If not, stick to a good state college.
Depending on where you live, government student loans are sometimes forgiven if you go into certain careers - teaching and social work are generally included.
I think you’re right on about kids going to school for teaching or social work, then getting out, and not being able to do what they want to do because of debt. It’s sad to see, and frankly, I’d like to see something done about it.
What should we do about it? Well, I’m not sure. I sure would like to see the government get involved though.
I agree that college is ridiculously expensive (especially for liberal arts majors who won’t have the salary required to pay off their student loans in a timely manner), but I just wanted to point out that if a kid can get in to Harvard, Yale, Princeton etc., they can get incredible financial aid packages. These schools meet 100% of demonstrated financial need, and they do it with grants, not loans. It’s rare (and getting rarer) that kids graduate from the top Ivies with debt.
I think a lot of people look at the price of tuition and get sticker shock, and then don’t apply assuming they could never afford it, when in reality it might actually be cheaper to go to an Ivy League school than to go to your state university.
I am a single mother and receive no support for my daughter’s education from her father’s side of the family. I pay for her health and car insurance, which is all I can afford.
Some states have a scholarship through their lottery system or other funding based on the student’s high school grades and other requirements.
My daughter was fortunate. She is a student athlete and so far all of her tutition, books and lab fees have all been paid for through an athletic scholarship. She attended a community (junior) college for her first two years and received money from the state for reimbursement of her tutition costs which covered the balance of her dorm room expenses and she only had to take out a few subsidized student loans to pay for her other expenses. Now she is at a four year university where every thing is paid for and she gets a small stipend at the school cafeteria for meals. She has a credit card that she only uses for gas and the bills come directly to me, which I immediately pay out of her bank account. Since she is an athlete, she is not allowed to work. And even if she was, there just isn’t enough time in the day. She still has graduate school to attend, but hopefully that will be paid for by the generosity of a third party. Like I said, my daughter is fortunate and will graduate with around (probably less than) $10,000 in student loans. I know that is a lot of money, but it could be worse. If all goes well, she will start out at a job making close to six figures and be able to pay it back quickly. We will see!
The stories here remind me of an old Mennonite saying
“too soon old, too late smart”
Sadly how true it is.
Very interesting post! Not sure that I’d agree that an expensive Ivy-League education is not worth it. I think it’s worth it in terms of connections, attitude and resources. BUT, it’s probably best for those who will take advantages of those things. It will do no good for the student who might not appreciate those aspects. I went to a UC school for undergrad and an Ivy League for a Master’s degree (both paid for by my parents with nominal input by me) and I still, to this day, think what advantages the undergrads have at that particular Ivy League I attended. Most of all, there was an intellectual and entrepreneurial spirit that just bubbled there that I didn’t see on my undergrad campus which is priceless. And, the recruiters who showed up at the Career Center-unbelievable. But, my husband attended a CSU campus and has done very well. He had the hands on, practical education plus a persevering attitude (and no help from his parents) that put him in a pretty well-paying job from the get go, despite graduating during the recession of 86-87!
Correction - DH graduated during recession of 91-92 (86 was hs!)
I have to agree with community college being a great idea. There are some classes that you have to take no matter what your major is, and it is a whole lot cheaper (at least here in CA) to pay $20/unit for classes that transfer just fine to UC or CSU.
And the quality of instruction in community colleges is great. In fact, I was more challenged in my CC courses than I was when I transfered to CSU. I also had an astronomy instructor in CC who had taught at Berkeley and then another CSU, and he always told us that he taught our class in community college the same way he taught it at Berkeley. I worked my butt off in his class, but I learned more in his class than I did from even the best professors at CSU.
If I had to do it all over again… well, I might consider taking some community college courses while in high school, but applying to a UC as a freshman. The only reason I would do that is because if I were to do it again I’d major in astronomy and Berkeley has a great program which I would want to take from start to finish. But I’d take as much general ed in community college summer classes as I could before finishing high school.
In a different major, I might very well take everything I could in community college and transfer as a junior to CSU. I’ve heard from some of my professors that CSU graduates are more in demand than the UC graduates (at least for the 4-year degrees in certain fields) because of the reality based education you get in a CSU, rather than theory based. I teased my boyfriend (a UC grad) about this on a recent camping trip. We had to tie some rope to keep a tent up, and while the UC grad was reading his instructions on how to tie these fancy knots and when to use each knot, the CSU grad had already gotten the tent up with a couple of square knots. So the knots weren’t all pretty, but the tent stayed up!