Tuition Arms Race

[wh]

Study blames college tuition arms race on schools addicted to federal aid

http://www.foxnews.com/politics/2015/07/10/study-blames-college-tuition-arms-race-on-schools-addicted-to-federal-aid/

[wh]

Here is an analysis that tells a somewhat different story that long term public school tuition costs have been rising more quickly percentage-wise than have private schools'. 

http://trends.collegeboard.org/college-pricing/figures-tables/tuition-fees-room-board-time-1974-75-2014-15-selected-years

Collectively, my wife and I and our 3 grown children have five 4-year degrees and 4 advanced degrees (including my son's law degree from Valpo) - all from private schools. We are huge advocates for private school education and actively support our respective alma maters. That said, we share a major concern that private universities are eventually going to be unaffordable for the middle class and could even price themselves out of business.  Our 3 children and their wonderful spouses have blessed us with 8 amazing grandchildren, and despite all 3 families doing fairly well financially they are all very concerned whether they will be able to afford to send multiple children to private universities. 

I'm hoping to hear from others of you that I suspect may share some of the same concerns.

wh     

[vu72]

Here is an analysis that tells a somewhat different story that long term public school tuition costs have been rising more quickly percentage-wise than have private schools'. 

http://trends.collegeboard.org/college-pricing/figures-tables/tuition-fees-room-board-time-1974-75-2014-15-selected-years

Collectively, my wife and I and our 3 grown children have five 4-year degrees and 4 advanced degrees (including my son's law degree from Valpo) - all from private schools. We are huge advocates for private school education and actively support our respective alma maters. That said, we share a major concern that private universities are eventually going to be unaffordable for the middle class and could even price themselves out of business.  Our 3 children and their wonderful spouses have blessed us with 8 amazing grandchildren, and despite all 3 families doing fairly well financially they are all very concerned whether they will be able to afford to send multiple children to private universities. 

I'm hoping to hear from others of you that I suspect may share some of the same concerns.

wh     

Interesting read.  I actually have something to contribute to this subject.  I am a financial planner and our firm has sought out a specialty firm to assist families with college age students as it has become a choice of planning for retirement or spending their retirement funds on college education costs.  I have no horse in this race so I will tell you that if you have child in high school (ideally a sophomore) it may make sense to hire this firm or another similar firm to help guide you through an amazing maze of paperwork necessary to gain the most in terms of scholarships, grants and the like. Cost is about $3000 all in.

As an example of where wh's concern may not be valid, consider that this firm uses an actual example of comparing the actual cost of going to Illinois versus the cost of going to Northwestern for one particular family.  Northwestern is one of the 15 most expensive schools in the country--sticker price wise. The  bottom line is that in this true case, it cost LESS to go to Northwestern then to go to Illinois.  Why?  Northwestern has a HUGE endowment and thus can provide scholarships where Illinois may cost less (62,000 v. 31,000 sticker price) but offer little more then loans and jobs.  Loans after all must be repaid and work takes away from studies or the college experience.

I have a dear friend who now has two sons at Valpo and his experience agrees with my example.  State schools just can't provide the scholarships that privates can.  Remember, sticker prices are just that--sticker prices.  NOBODY pays the sticker price--unless you are really uninformed. Even the very wealthy qualify for aid.  It has been an enlightening learning experience for me.  This is part of why President Heckler is so concerned with increasing the endowment at Valpo.

Here is the Plan on College website (again, no horse in this race):  http://www.planoncollege.com/