Corraleno Posted November 26, 2017 Share Posted November 26, 2017 I would turn the question around and ask: if the student has the stats to get into a highly selective school and if the family can afford it, under which circumstances would the higher cost be worth it? I think one aspect of this that hasn't been mentioned yet is that even if a family has the full cost of an Ivy education sitting in the bank, any cost-benefit analysis needs to take into account what else that money could have been used for. Is a degree from Elite Private School (full pay) really worth more than a degree from State Flagship (full ride, Honors College, extra perks) plus $250,000 in cash? A student who chose Option B and invested the $250K instead could have a retirement fund worth more than $3 million at age 65. Or he could use the money to pay cash for a starter home or use it as a down payment on a larger house, slashing $250K off his mortgage. Even though the student who chose A could do so without incurring student loan debt, he'd still be taking on debt later, just in the form of a mortgage (that he'd ultimately pay an extra $350K for) instead of student loans. Obviously there are some families who can write a check for the sticker price at Harvard and buy Junior a nice house, and there are some families whose choices are more along the lines of $10K net price at State Flagship versus $20K net price at Elite Private, but in situations where there is a significant difference in price between options, the assessment of "value" really comes down to School X versus School Y plus the difference in cash. 12 Quote Link to comment Share on other sites More sharing options...
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