Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-21-2017, 12:29 PM   #61
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 27,563
Wow.

I wonder if it is not something people carry from their youth, but rather debts incurred by displaced older workers who pay for some training, hoping to start a new career.
__________________

__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-21-2017, 12:29 PM   #62
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 15,455
Quote:
Originally Posted by imoldernu View Post
Interesting overview of the staying power of education debt:


Quote:
College debt is not necessarily something people shed in middle age. According to the U.S. Consumer Financial Protection Bureau, the number of those 60 or older with student loan debt grew from about 700,000 to 2.8 million from 2005 to 2015. Their total bill is $66.7 billion.




But if you read, the biggest reason is that they are putting their kids or their grand kids through college.... not that it is their debt...
__________________

Texas Proud is offline   Reply With Quote
Old 02-21-2017, 01:11 PM   #63
Dryer sheet wannabe
 
Join Date: Oct 2016
Posts: 11
I've been going through this with my son - he's a senior in high school and wants to be an engineer. He applied to a couple on in-state schools (tuition, room, board ~$23K/yr) but also wanted to apply to one out-of-state school (tuition, room, board ~$48K/yr). We let him apply, but he understood that absent some sort of out-of-state tuition waiver, there was no way we were paying an additional $100K for him to go out of state.

In our case, we can argue whether or not the in-state options (UT Austin, Texas A&M) are as "elite" as the out-of-state school (Georgia Tech), but there's no way I'd ever encourage him to take on $100K in debt to go to Ga Tech.

If your kid does well in high school, there are some schools that offer some pretty nice packages. For example, if your child gets at least a 32 on the ACT and has a 3.5 GPA, they'll get their tuition paid for at the University of Alabama (worth $27K/yr for 4 years). With a 30 on the ACT, the school will cover 2/3 of the tuition ($18K/yr). Now, no one is going to confuse Alabama for Stanford or MIT, but we then get back to the question of whether or not an "elite" school is required for success (it's not).

Another thing to look at is the cost of books. I know that it pales in comparison to tuition, room and board, but there are options to save money. I have a daughter who is a junior in mechanical engineering. In her 3 years of college, we've spent about $750 on books. We'll rent the required textbook, and if she wants/needs a copy for future reference, I'll buy the same book but an edition or two older. This semester, her fluid mechanics book is $240 new from Amazon (or the bookstore). I can rent it for $39 from Amazon and purchase the same book but two editions older for $4.99 (including shipping). And the basics of fluid mechanics hasn't changed in a long, long time, so it's not like the older book is out of date. So, I'm out $44 instead of $240. Multiply this for 4-5 classes each semester and it adds up.
mrftexas is offline   Reply With Quote
Old 02-21-2017, 02:42 PM   #64
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 15,455
Quote:
Originally Posted by mrftexas View Post
I've been going through this with my son - he's a senior in high school and wants to be an engineer. He applied to a couple on in-state schools (tuition, room, board ~$23K/yr) but also wanted to apply to one out-of-state school (tuition, room, board ~$48K/yr). We let him apply, but he understood that absent some sort of out-of-state tuition waiver, there was no way we were paying an additional $100K for him to go out of state.

In our case, we can argue whether or not the in-state options (UT Austin, Texas A&M) are as "elite" as the out-of-state school (Georgia Tech), but there's no way I'd ever encourage him to take on $100K in debt to go to Ga Tech.

If your kid does well in high school, there are some schools that offer some pretty nice packages. For example, if your child gets at least a 32 on the ACT and has a 3.5 GPA, they'll get their tuition paid for at the University of Alabama (worth $27K/yr for 4 years). With a 30 on the ACT, the school will cover 2/3 of the tuition ($18K/yr). Now, no one is going to confuse Alabama for Stanford or MIT, but we then get back to the question of whether or not an "elite" school is required for success (it's not).

Another thing to look at is the cost of books. I know that it pales in comparison to tuition, room and board, but there are options to save money. I have a daughter who is a junior in mechanical engineering. In her 3 years of college, we've spent about $750 on books. We'll rent the required textbook, and if she wants/needs a copy for future reference, I'll buy the same book but an edition or two older. This semester, her fluid mechanics book is $240 new from Amazon (or the bookstore). I can rent it for $39 from Amazon and purchase the same book but two editions older for $4.99 (including shipping). And the basics of fluid mechanics hasn't changed in a long, long time, so it's not like the older book is out of date. So, I'm out $44 instead of $240. Multiply this for 4-5 classes each semester and it adds up.

Interesting info on the out of state schools like Alabama.... my son graduated in the top 20 students (I think 13th) with a class of 1500... and when they were giving out awards there were a number of people ranked lower than him that were getting full ride scholarships... and as you probably found out UT is not giving anything.... now I know why...

I also think there are a couple of others in Alabama as there were 3 or 4 students that got full ride... and I do not think they were all going to the same school....
Texas Proud is offline   Reply With Quote
Old 02-21-2017, 02:57 PM   #65
Thinks s/he gets paid by the post
 
Join Date: Sep 2014
Location: The Great Wide Open
Posts: 2,444
There was an article in WSJ in December about SS benefits cut to pay student debt.

https://www.wsj.com/articles/social-...ebt-1482253337



My engineering books have been pretty good dust collectors over the years as they have been on bookshelves in my office and in 3 homes. It's worse now, everything is on a computer program. You name it, size of pipe, electrical conductors, size of beams, even drawing of your design.
Winemaker is offline   Reply With Quote
Old 02-21-2017, 05:14 PM   #66
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 6,337
The ARE lesser known opportunities for young people that do require some digging.
Case in point:
My youngest grandson who is admittedly quite gifted, graduated last year from the Illinois Math and Science Academy... "IMSA". His ambition is to do good, whether as a Doctor Without Borders, or in mentoring the poor in foreign countries.He was guided by school counselors to apply for a "Stamps Scholarship", which most have never heard of. Last year he was approved for a four year scholarship... tuition, room and board, books, a new computer, and all of the major expense categories that a young man would be expected to need. In addition, as part of the scholarship, a first year expense paid trip to the country of his choice (up to $12,0000) to absorb the land and the culture. (I believe he is choosing between India and Peru... ).

Naturally not an open door for everyone, but an example of the wisdom and forethought of those have gone before, and want to pay back for their success, and to further the interests of the nation.

Here's the website for the foundation.:

Stamps Family Charitable Foundation | Stamps Leadership Scholars

Quote:
Scholars receive annual awards that range from $5,400 to $72,000
(four-year awards total an average of $20,000-288,000) with
additional funds for enrichment activities such as study abroad,
academic conferences, and leadership training. the stamps foundation
and partner schools evenly share the costs of the awards.
An example of giving back.
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
imoldernu is offline   Reply With Quote
Old 02-21-2017, 08:34 PM   #67
Full time employment: Posting here.
cooch96's Avatar
 
Join Date: May 2014
Location: Lakewood
Posts: 845
Quote:
Originally Posted by imoldernu View Post
Interesting overview of the staying power of education debt:
DF has student debt from the 70s and 80s. I doubt he has any inclination to ever pay it off. i doubt any of my siblings have any intent to pay off their's either.
__________________
Why be normal when you can be yourself?
cooch96 is offline   Reply With Quote
Old 02-21-2017, 09:28 PM   #68
Thinks s/he gets paid by the post
Philliefan33's Avatar
 
Join Date: Oct 2014
Posts: 1,209
My advice to soon-to-be college students is "follow the money". If you are a high-stats student with a legitimate chance for admission at a top twenty school, make sure you also apply to schools that will reward you with merit scholarships. Incurring high debt to go to the most prestigious school is not worth it if you can get a degree from a well-respected university for free.

For mere mortals, who won't be showered with merit money, don't buy into the hype of paying for prestige if it means you incur big debt. Look for ways to maximize your ROI. Take AP courses where appropriate, start at community college, maybe commute to a local university to save on housing costs.

We used a combination of the above with my daughters. Oldest went to a private college that gave her enough merit aid to bring the cost down to what it would cost to go to Penn State. Her AP credits and one summer class at the local CC gave her enough credits that she graduated in eight semesters, despite devoting the eighth semester to student teaching. The youngest went to Pitt and also finished in four years.

I think some of the posters here are making judgements about the affordability of college based on their unique situation without considering that things are not the same everywhere. Some people live states with higher in-state tuition costs*. Some students won't be admitted to their low-cost options. Some people live in rural areas where commuting to college is not possible.

*Many people don't know that Penn State is not a state-run university. It is "state affiliated", as is Pitt and Temple. In-state students get lower tuition but it is higher than at the true state schools. Tuition at PSU is $17-$20K per year vs about $10K /year at one of the 14 state system colleges.
Philliefan33 is offline   Reply With Quote
Old 02-22-2017, 06:59 AM   #69
Recycles dryer sheets
 
Join Date: Feb 2013
Posts: 224
I agree that colleges are getting out of control expensive. I think over the next decade that trend will stop or they will be priced out.

I went to a private university and was fortunate that my parents paid for my college. I get routine mailings and phone calls from my university asking me to donate to them. My dad often encourages me to do so. Although I had a great experience and my degree has paid dividends so far in my career, I have seen my alma mater's financials, and they do not "need" my donation. I'm concerned my donation would go towards landscape improvements than it would actually helping out someone in need.

And I agree that students need to be "smart" about choosing majors that will pay off. I majored in accounting which is arguably one of the more boring majors. However, it gave me a ton of job options right out of college. I am almost 6 years out of college and my annual income now is almost 50% higher than what it was when I graduated. Additionally, I have no concerns about being unemployed and not finding a job. Although I do have savings to cover me if I were to lose my job, and I do live in a big city with lots of jobs, my resume at this point makes me very marketable. I am contacted almost twice a week by recruiters that seek me out.

I think another important factor is the power of networking. Every job (even college internships) have been through people I know or know through someone else. It is important for students to use the networks of their parents, friends, family Friends, etc, because you never know where an opportunity will arise.


Sent from my iPhone using Early Retirement Forum
younginvestor2013 is offline   Reply With Quote
Old 02-22-2017, 09:35 AM   #70
Thinks s/he gets paid by the post
 
Join Date: May 2014
Location: Utrecht
Posts: 2,650
Another way around: get your degree in Germany (or a few other European places). Germany is (quasi) free I think, Belgium is close with about 1.000 USD per year for tuition. Just as an example.

Bonuses: you'll learn another language, get some good social skills, a broader perspective etc ..
Totoro is offline   Reply With Quote
Old 02-22-2017, 10:09 AM   #71
Thinks s/he gets paid by the post
 
Join Date: Sep 2014
Location: The Great Wide Open
Posts: 2,444
Quote:
Originally Posted by younginvestor2013 View Post
I agree that colleges are getting out of control expensive. I think over the next decade that trend will stop or they will be priced out.
We said the same thing back in the '70's!
Winemaker is offline   Reply With Quote
Old 02-22-2017, 08:17 PM   #72
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 10,943
Quote:
Originally Posted by Totoro View Post
Another way around: get your degree in Germany (or a few other European places). Germany is (quasi) free I think, Belgium is close with about 1.000 USD per year for tuition. Just as an example.

Bonuses: you'll learn another language, get some good social skills, a broader perspective etc ..
This is one of the reasons I pursued duel citizenship for my sons (Italy).... If they choose to go to school in the schengen region they won't have visa issues. Only downside I can see is the 529 funds don't work for many European universities. Not the end of the world....
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 02-22-2017, 08:19 PM   #73
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 46,994
Quote:
Originally Posted by rodi View Post
This is one of the reasons I pursued duel citizenship for my sons (Italy)...
Because they fight a lot, right?
__________________
Numbers is hard

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 02-22-2017, 08:22 PM   #74
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 10,943
Darn autocorrect (or crappy spelling on my part). Dual citizenship.... Doh!
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 02-22-2017, 08:26 PM   #75
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 14,446
Quote:
Originally Posted by REWahoo View Post
Because they fight a lot, right?
Loro combattono molto.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 02-22-2017, 09:06 PM   #76
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 10,943
Quote:
Originally Posted by Gumby View Post
Loro combattono molto.
Certo! vero.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 02-22-2017, 09:37 PM   #77
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: California
Posts: 1,002
I've been playing with the idea of universities in Manila, but we are 7 - 8 years away. Many factors to consider major, student, health, etc. but cost for tuition, room and board, airfare may be less than $10k a year.

It would also serve as a RE location for us for 4 - 6 years ;-) A good launch point for other Asian countries for various trips for the parents while the kids at university.
Aiming_4_55 is offline   Reply With Quote
Old 02-23-2017, 09:33 AM   #78
Thinks s/he gets paid by the post
 
Join Date: Aug 2007
Posts: 1,391
We have an additional incentive that we offered DS. We'll give him 25% for any scholarship money that he earns. This is for scholarships he has to apply for, not merit scholarships that he automatically receives.

25% is generous, but we wanted him to have a lot of motivation. The way we look at it, we still save 75% and it gives him spending money while at college.
__________________
Eat, Drink and Be Merry.
tulak is offline   Reply With Quote
Old 02-23-2017, 06:06 PM   #79
gone traveling
 
Join Date: Dec 2016
Posts: 733
Quote:
Originally Posted by tulak View Post
We have an additional incentive that we offered DS. We'll give him 25% for any scholarship money that he earns. This is for scholarships he has to apply for, not merit scholarships that he automatically receives.

25% is generous, but we wanted him to have a lot of motivation. The way we look at it, we still save 75% and it gives him spending money while at college.
I like the idea! The scholarships are all small $1000 or so a piece, and I would question the time investment. However to children it could be much higher return on investment then working at minimum wage.
Luck_Club is offline   Reply With Quote
Old 02-25-2017, 08:03 AM   #80
Recycles dryer sheets
 
Join Date: Oct 2015
Posts: 124
Quote:
Originally Posted by imoldernu View Post
.........
My youngest grandson who is admittedly quite gifted, graduated last year from the Illinois Math and Science Academy... "IMSA".
Your grandson is extremely lucky and also extremely talented. A lot of resources high powered folks that are involved at IMSA. Kind of a funny story - was at the state science fair(s) and I am always in awe of the projects that the kids from IMSA do. My kids went/go to a small, rural school district. Science fair project are the typical, e.g. the Stroop effect, etc. Sponsor for the project was Mom and Dad.

The IMSA students are the ones whose projects are something like isolating the gene that predisposes someone to skin cancer. Their sponsor was Dr. XYZ, Nobel Prize winner from University of Chicago.

Having said that, I am glad that this school was set up and we are looking at the best and brightest and getting to them early. Only good things can happen.

COngrats and good luck to your grandson.
__________________

eastnortheast is offline   Reply With Quote
Reply

Tags
college bills, millennials


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Antioxidant Resveratrol Blocks Many Cardiovascular Benefits of Exercise AzDreamer Health and Early Retirement 13 07-23-2013 06:08 PM
Faking your way through a career break Gerbil Wheel Young Dreamers 11 02-01-2011 09:54 AM
Potential Roth stumbling blocks harley FIRE and Money 13 12-30-2009 02:57 PM
Mental Blocks and not listening to instincts ladelfina Stock Picking and Market Strategy 12 07-03-2007 10:37 AM
Mega Corp blocks forum... Texas Proud Other topics 11 09-21-2006 10:46 AM

» Quick Links

 
All times are GMT -6. The time now is 07:38 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×