College At Any Cost

Are you buying your college education right?

If you choose the college option:

• Is it a specific education plan, for a specific job, and a known, verifiable career-track?
• Can you really count on a job upon graduation? Or, is it just a guess – an opinion?
• Is it a reasonable cost in
  • time,
  • money,
  • risk, and
  • opportunity

Or, are you earning a college degree for it’s noble value?

• Will this college experience make you better, for a lifetime?
• Will your status or station in life improve?
• Will you become attractive, more sensitive, more meaningful?
• Can you name those actual, valuable, enduring benefits?
• Is it a reasonable cost in
  • time,
  • money,
  • risk, and
  • opportunity

And, why pay those costs, at that particular chosen college? Does it really make a difference where and how you get your learning?

Example Extremis.

See this from a recent Wall Street Journal Q&A

Q: My husband and I earn over $270,000 together. Our modest mortgage will be paid off in about six years and we’re almost debt-free. We have more than $400,000 saved for retirement, which is not nearly enough. We’re in our mid-50s; my husband doesn’t want to retire ever, but I’d like to switch to lower-paying, more rewarding work soon and downsize to a modern apartment.

But tuition for our only child’s college is $53,000 a year. We’ve paid for one year, but need to borrow at least $25,000 a year to pay for the next three. Should we take out equity against our house, borrow through the PLUS loan program, or sell the house and rent?

ProfessorDad: Not having all of the financial detail, we assume tuition is only one part of the true cost of college.

Using the College Costs Calculator, the “real costs of college” – not only tuition, is probably $410,000 for the four years – it could be considerably more – if the student does not complete the degree program, in the required four years. Apparently, the “average” college BA or lightweight BS degree program is actually completed in 5 years. In this instance, that brings the bachelor’s degree tab, to at least $500,000.

Does that seem reasonable?

Think.

It’s in our best interests, to evaluate the reality of these expenses. View these extraordinary costs against the potential of unemployment of either or both parents, their value of personal debt-freedom, the real worth of a bachelor’s degree from a no-name college, and the graduate’s real potential for paying his way, once graduated.

The parents are already aware they have underfunded their retirement – the mother wants “to switch to lower-paying, more rewarding work soon and downsize to a modern apartment” which may help the couple’s savings effort – but, conflicts with the college costs over-burden.

Suggestion.

Downsize the kid, now – as soon as possible.

Folks, tell your son today:

“Son, there’s been a death in the family. Our wallet died last night. We’re awfully sorry to tell you like this – but, Uncle Wallet died empty.

We all have to adjust – along with this terrible economy, we are having to lop-off spending of all kinds. We have become born-again frugal savers.

Now, since you are an adult, and because we want the best for you, we have figured-out your part in this situation.

We want you to start acting on this list today, dear boy.”

1. withdraw from the high-cost, low value college,
2. live at home, with us, and
3. get job – any job to pay room & board, live frugal,
4. pay for your CLEP or DANTES testing units, through the third year of college, and
5. take the last year of college, online,
6. graduate with a job-career plan, then
7. live at home while saving every penny,
8. pay for your room & board, and
9. leave home once the career track has started, then annually
10. thank God for your parents, that have set you straight for self-discipline and maturity.