College Economics 101
We’re off to Searcy, Arkansas today to give Number One Son, who turned 18 yesterday (Happy Birthday Number One–don’t forget to register for the draft!), one last chance to look over Harding University before making the decision about where he will spend the next four years of his life.
We’ve told him that this is his first Big Decision as a budding adult and that we’re for the most part butting out. Our strategy is that if he chooses one and then hates it, he can’t blame us–or so we think. He’s applying to Harding, the University of Alabama and Davidson College in North Carolina. He’s got some nice merit scholarships from the first two and won’t find out about his acceptance to Davidson until late March. Davidson is a very cool school, but very expensive even if he does get accepted.
Unlike his younger brothers, Number One has vague memories of what it was like when our family barely had two pennies to rub together. As a result, he’s always been pretty parsimonious with his funds, and I’m guessing the Big Decision will be affected by that tendency. Sure, he’s apply to three colleges, but for all intents and purposes it might as well be two.
And he’s not alone. This report in USA Today indicates that in one survey of those college students who are not attending their No. 1 choice school, 52.6% were accepted but opted not to attend. Of those, at least 20% cited “financial reasons” for attending their 2nd or 3rd choice schools.
I can recall going through similar decision-making in April, 1980 when I turned down offers from 3 so-called “Southern Ivies” to attend Harding where I was able to graduate with no debt. That gave me the financial freedom to take out a modest amount of student loans for optometry school (the monthly payback for which was comparable to a small, compact car) and choose the practice mode of my choice without significant financial baggage.
That is not the case with many students whom I encounter today. I’m familiar with one young fashion design major from a Christian college who is saddled with nearly $90,000 in debt, much of which was channeled through the school’s financial aid office. I know it’s a “Christian” school, but I can think of only word to describe that practice–immoral.
As an adjunct professor with the UAB School of Optometry and the University of Alabama School of Medicine, I also encounter many 4th year professional students and young interns who are staring at six figure debt as they attempt to chart their future course. Needless to say, such financial ecumberance often leads them to choose higher paid specialties over primary care or modes of practice other than their first choice.
Perhaps the first rule of College Economics 101 is “minimize your debt in order to maximize your future options.” It’s nice to read that at least some students are learning that lesson before they even get started.
17 Comments
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GREG
Too bad it’s not next weekend, maybe we could hook up. We’re going to be up there at my parents next weekend. Have a safe trip.
Mike the Eyeguy
We keep missing each other-drats! At least it’s looking like no snow or ice now, just rainy and cold.
Chad
My brother graduated from a private college then went to optometry school at Pacific in Portland, OR. Even with scholarships his debt after graduating was close to $200,000. I believe he was paying over $40,000 per year at Pacific.
It seems that it is nearly impossible not to have some school debt. My wife and I had a combined $55,000. It is a tough way to start life.
Mike the Eyeguy
Chad, you’re right it is nearly impossible. Educational debt is generally considered to be “good debt”–an investment so to speak. And more often than not, the numbers over time show that it turns out to be just that.
But with tuition at both the undergraduate level and professional schools rising much faster than inflation, the time that it takes for that “investment” to “pay off” is increasing at an alarming rate. Unfortunately, aside from the optometry school at UC-Berkeley which has a small class size, there aren’t any public optometry school options for those out west. Pacific is very pretty from what I understand, but obviously very pricey.
I wish your brother, and you and your wife, the very best in getting that “good debt” paid off and getting on with things.
Mike the Eyeguy
I thought I would add this note about Davidson.
While expensive, they do cap total loans over 4 years at 12K. I was impressed by that. Basically the message is that if you and your parents can’t make up the difference between your financial aid package (loans, scholarships and work study) and the cost of attending, then maybe you should consider another less expensive option. No saddling anyone with a 90K set of weights to start out life.
I respect that about a school.
Stoogelover
My son graduated two years ago from a small Christian university here in SoCal (yes, there are Christian universities in southern Califorina that aren’t in Malibu) and my daughter graduates from the same school in May. Neither of them have much college debt to repay … but mom and dad will be paying through the nose until we die!
Mike the Eyeguy
I hear ya Stoogelover. It seems to me that one’s basic purpose in life (with apologies to Rick Warren) is to grow up, get a job, finance your children’s successful (God willing) launch into adulthood, and then die.
Am I missing something?
kenny simpson
My wife and I are around $50,000 for HU. But I wouldn’t trade it.
Mike the Eyeguy
KS, good point. Many times there are “value-added” experiences at private schools which go beyond mere dollars and sense, so to speak.
Laurie
Oh, boy, do I hear this one. We’ve told our kids we’re paying for in-state public schools. (There are several very good ones here.) My son’s first-choice school is NYU. $45,000 a year, vs. $15,000 for in-state. He airily says, “Oh, I’ll make up the difference.”
He has absolutely no clue what a debt of $120,000 would be like. That’s more than we paid for our first house! By a lot!
I don’t think he’ll get in. I guess I HOPE he doesn’t get in. (Does that make me a horrible mother? I don’t want to be faced with the choices we’d be faced with if he does.
Mike the Eyeguy
Maybe it’ll go like this: he’ll get his NYU acceptance letter, frame it, then say, “Mom, you know you’re right about that money thing,” and then become a happy UofW Huskie.
There is another thing to keep in mind though about the high-end schools–rarely do you pay full sticker price. I don’t know about NYU, but I know that many of the Ivies have such large endowments that one ends up paying 40-60% of sticker after grants, etc. Many are capping loans as well, which as I mentioned above, is a very sane–and moral–thing to do.
Brady
We’ll be going through the same process, a bit simplified, in a year’s time, for Harding. Would love some good advice. Here, if you can get out of high school, you’ve got to come up with 1000 bucks a year, plus room and board. Let us know how it goes.
Mike the Eyeguy
Brady, I’ve read your posts about Swiss high schools. They sound comparable to a college experience here.
I don’t know about advice, but I just returned from a 7 mile run around Searcy and I can tell you this: Searcy is still Searcy. I’m sure you could find a, let me phrase this very carefully, more “sedate” college town somewhere, but you’d have to really beat the bushes.
Jeff stidman
Mike, I read your blog and started reminiscing. I really cherish those days at Harding. I have many fond memories. In one year my oldest daughter Hannah will be making the same decisions as David. I, however have taken the parental prerogative and narrowed her choices to two- Harding or ASU-Jonesboro. I’m certain she will make the “right” choice. And if not, I will make it for her. I’m not worried. We’ve taken many trips with friends to Harding. She was brain washed long ago. Of course her college choice is “her” decision.
Mike the Eyeguy
Well if isn’t my old college roomate! Great to hear from you Jeff. I’m typing this response from the HU student center using Number One’s log-in. I seem to remember someone else who had it narrowed down between HU and ASU-Jonesboro!
Yeah, now I’m reminiscing too. In fact, I just had an idea for a new blog series–The (Mis)Adventures of My Old Roommate Jeff. In fact, I saw that old MJ video “Thriller” the other day and needless to say, I thought of you!
Stop by again soon, my friend.
double vision
Taught a Sun School class of high school students a few years ago. Heard a student say she was attending Vandy to be a kindergarten teacher. I could not help but give the students a little advice. One has to look at what I call EP “Earning Potential” of their chosen profession in deciding on where to attend college unless mom and pops has the means. A kindergarten teacher probably will not have the EP to pay off a Vandy education without mom and pop or an MRS. degree with a very rich young man. I’m just glad optometry provides some EP to counteract the debt I racked up at professional school alone. I love what I do and can only hope that the youth of today can experience that same feeling toward their calling.
Mike the Eyeguy
DV, exactly, the EP has got to be figured in. I can see how an Ivy League or elite undergrad degree could be important in certain fields (like investment banking) or if one desires to go into politics, etc. Otherwise, the cost has got to be balanced with the EP to discern whether or not the cash shell-out is sound investment.
Professional school debt tends to be “good debt,” but even in the relatively short time that we’ve been out (17 years isn’t that long, is it? Well, is it?), it’s become more difficult for optometry to “pay off” quickly. But it’s certainly still possible.
And yes, to be in synch with one’s calling while earning a comfortable living to boot is indeed a blessing that I wish everyone could experience, especially my sons.