Public versus Private College article

[Harry]

Choosing between a public and private school is one of the most significant and personal decisions facing prospective college students.

Do you want your college experience to center on a big, vibrant public campus, with a giant football stadium and wide selection of majors? Or do you like the appeal of a small, pleasant private institution, with more personal classes and a tight-knit community?

Whichever option fits your dreams, you'll also have to think about the reality of paying for college. And just as there are stereotypes of the public and private college experiences, there are also stereotypes about the costs.

Many assume that public schools are cheap and private schools are expensive. On the surface, these stereotypes ring true.

[Check out the 10 schools with the cheapest out-of-state tuition.]

According to the College Board, the average cost of attendance for a private four-year college including tuition, fees, books and room and board is just under $40,000 per year. This compares with an average cost of around $18,000 for in-state students attending a public university.

But that's not the whole story. There are a few factors that can make a big difference in cost, including residency, financial aid, a school's endowment and scholarship options.

While public colleges and universities do feature a lower sticker price and cost of attendance than private schools, there's a hidden facet to the savings: residency requirements. That $18,000 cost for state residents jumps to an average of $31,000 for students who live outside the state, putting total costs closer to a private school bill.

[Learn which schools have the most expensive out-of-state tuition.]

If your dream college is an out-of-state public school, there are ways to deal with the difference. I grew up in South Dakota and attended the University of Minnesota. I was able to pay in-state tuition rates thanks to a reciprocity agreement between the two states, in which South Dakota and Minnesota residents could attend colleges in either state for the lower in-state price.

Many states have similar compacts with their neighbors, and they can take a big chunk out of your tuition. The Western Undergraduate Exchange allows students from 15 states to attend colleges throughout the exchange for reduced tuition.

There are also a few scholarships out there designed just for students at public colleges. These are also frequently state-based.

[Find out how to get in-state tuition at out-of-state colleges.]

In Texas, the College For All Texans initiative features a Top 10 Percent Scholarship Program. Through this program, any incoming or continuing college students who graduate in the top 10 percent of their high school class and who attend a public college or university in Texas are eligible to receive $2,000 per year.

read more: http://news.yahoo.com/explore-scholarships-public-universities-affordable-141617779.html

[HoustonEagle]

One of my co-workers has one kid starting at Colorado and another at TCU this year. So out of state tuition and private tuition. Price tag for one year? Close to 100k for the year after room and board and incidentals. My jaw hit the floor..... then I immediately increased my monthly contribuition to our 529.

Edited August 2, 2013 by HoustonEagle

[Censored by Laurie]

[BeanCounterGrad'03]

Granted, I'm 15 years away from having my kids starting off to college, but I like the approach my parents took with my sister and I: they covered most of our living expenses and left the responsibility of tuition and books up to us. That way, they really think about whether or not going out-of-state or private is really worth them getting into massive debt. We've started a 529 for both of our kids, but we're letting them know early on that they shouldn't expect that it will cover all their education and that they should start thinking about scolarships when they start applying to schools.

Worked out well for me as I was able to graduate without any debt. Would have worked out for my sister if she wouldn't have gone to SMU her first year before transferring to North Texas. Even with a good amount of scholarships, she still went into about $8K worth of debt for that one year. Glad she finally saw the light and moved away from the dark side.

[KRAM1]

Granted, I'm 15 years away from having my kids starting off to college, but I like the approach my parents took with my sister and I: they covered most of our living expenses and left the responsibility of tuition and books up to us. That way, they really think about whether or not going out-of-state or private is really worth them getting into massive debt. We've started a 529 for both of our kids, but we're letting them know early on that they shouldn't expect that it will cover all their education and that they should start thinking about scolarships when they start applying to schools.

Worked out well for me as I was able to graduate without any debt. Would have worked out for my sister if she wouldn't have gone to SMU her first year before transferring to North Texas. Even with a good amount of scholarships, she still went into about $8K worth of debt for that one year. Glad she finally saw the light and moved away from the dark side.

Just the opposite for me, but same concept. My parents helped to pay the tuition and books...everything else was on me! Graduated with zero debt after an undergraduate and three graduate degrees. My Dad's quote was..."son, we'll pay for your schooling, but not your loving...go get a job!".

Want a no-debt undergraduate Ivy League level education? Try one of the service academies. Great education, employment upon graduation and a network for business and social activities for life! Just wanted to add that as it was pretty much left out of the public vs private chat. Ha! Oh, there is that little commitment thing after one graduates that needs to be considered with a service academy.

[SCREAMING EAGLE-66]

-- One big mistake parents make... totally paying for college..... If kids work and contribute then they tend to take college more seriously ... it is now their money being spent.

-- Part two .... so many run up a huge debt and partially because of partying and having a good time..

--For most professions, going to a private school is just not worth the price difference... grads from recognized state schools ( not SW South Dakota State) do just as well.. In fact I have known some people who prefer grads from a state schools ... they are more likely to know how to work and don't think people "owe" them and that they should be in charge.

--Another consideration.... one year at a local community (if it is a good one) ......Classes are smaller [ not 50-200+ ], profs. that likely know your name, can get help if needed, and at many Mega-universities, the "prof" is a TA with only a BA and maybe teaching his/her first class ever.... [ I was one but had taught one year ] These people would never be allowed to teach a class at a community college, must have graduate degree with 20+ hrs. grad hours in that area. Most in those have taught for years and know how and what to teach... I teach a lot of Aggies, TxTech students plus others in the summer ... they claim our classes are just as tough standardwise but have profs who actually can speak English [ largest complaint I hear about those two places, can't understand those TA profs at Megasize Univ. ] Toss in many profs at Mega Univ are more concerned about publishing and research than teaching.

Edited August 3, 2013 by SCREAMING EAGLE-66

[UNTFan23]

-- One big mistake parents make... totally paying for college..... If kids work and contribute then they tend to take college more seriously ... it is now their money being spent.

Thankfully this decision is left to the parents. I doubt my parents consider it a mistake since both myself and my brother both now work for companies in the top 25 of the Fortune 500.

[gksmith]

Gota agree with Screaming Eagle. If it is your money on the line you are going to take it more seriously.

I saw that happen at a specialization school. I paid out of my pocket to go there. I worked my butt off and studied hard in a difficult place (Ft. Lauderdale, FL during Spring Break). I didn't have the money to go to the beach every weekend. End result - I finished high in the class and got my certificate. There were several people there on someone else's money (government or parents mostly) who failed to get the certificate.

UNTFan23 I congratulate you on your accomplishments. You got the degree even though someone else paid the tuition. The draw back to working while going to school is you have to balance study and work.

I would like to see if there is a study to see what the trend is.

[CMJ]

My folks sent my brother and I money for expenses, but we had to pay tuition. I think we appreciated it more, though I am not gonna say I didn't have a semester or two where I goofed off a lot (girlfriends will do that to you!). I guess that comes with the territory of college life, even if it is your money on the line. I do think at the end of the day I appreciated college more because I paid for it though.

[oldguystudent]

Eh, it's got a lot to do with age too. I paid my own way 100% through undergrad, tuition, books, rent, food, everything. Came out debt free. But I still drank a lot of beer, chased a lot of girls, skipped a lot of classes, and came out with something stupid like a 2.7 GPA because I was young, I didn't have any parental guidance at all, and I thought that a degree was just some magic piece of paper that would entitle me to a life of middle class leisure forever. I lived by the mantra that Cs get degrees.

The second time I went to college, I was 36 years old, shifting gears to learn a new skill, and took it more serious than a funeral. Got all As. Not just all As, but like kicked the crap out of most of my classmates all As (except for Lazer, that guy's a fricking savant).

So for me, it wasn't just having my own money at stake, but having an understanding of what was going to happen after college that drove me or didn't depending on how old I was.

[SCREAMING EAGLE-66]

Thankfully this decision is left to the parents. I doubt my parents consider it a mistake since both myself and my brother both now work for companies in the top 25 of the Fortune 500.

..

---Never had a summer job..? which contributed.... unusual.... Not sure a Fortune 500 job absolutely means that much (see Walmart ) Lots of people here in oil business making a fortune with smaller companies.. My personal kids worked and we shared cost .. and one son who was at NT also worked in computer labs and is an engineer for TI (graduated in 3.5 years) Other Son didn't work during year but had good paying summer computer jobs and is now an engineer with an MBA and law degree work as an executive for a semiconductor company. (I did not pay one dime of the law degree or MBA ) .. Daughter worked some year during the school year and graduated in 4 years. So did I.. paid for all graduate work myself. Wife worked and finished in three years ... had to ... no parental support other than living at home first year.

-- It isn't always a mistake but generally speaking putting something into the "pot" makes student more serious ..... Most of those don't also then often have an insane amount of student debt at the end... They just don't seem to understand how hard that is to repay [not much understanding of money or finance ]. So many do that now. I teach college classes.

Edited August 4, 2013 by SCREAMING EAGLE-66

[UNTFan23]

---Never had a summer job..? which contributed.... unusual.... Not sure a Fortune 500 job absolutely means that much (see Walmart )

I worked summer jobs (Philmont for one) which I then used money I earned during the school year to pay bills and my fun times. I also worked Retail or Banking jobs when I was working PT while going to school. I actually posted my worst grades while working and going to school at the same time, so not working worked out better for me.

If you work for a store for Walmart I can see where that might have some weight but many of the current store managers started out at the entry level, so it is possible to work your way up in the retail world food chain. I personally worked retail in high school and some in college. Today I work in the IT department and work on projects that have real impacts for the company. I've even been awarded several awards for the work I've done.

I just take exception to the notion that having your parents pay for your college is a bad decision when my accomplishments directly contradict your opinion. Your "one-size-fits-all" idea just doesn't work for everyone.

Edited August 5, 2013 by UNTFan23

[JesseMartin]

Your "one-size-fits-all" idea just doesn't work for everyone.

I definitely agree with this most of all. Some students can have parents, scholarships, whatever to pay for everything and do fine, others use it as an excuse for a year or two of free fun and don't care. It's all about personal level of motivation as well as types of motivation. We basically plan to say, "We have 100K for your college, so either you get scholarships or you have to go to community college for core classes, but if you can't handle that then you're on your own for University level courses". But not only is that likely to change, but each kid might handle things differently. If they're dead set on going to a certain school for all of undergrad but don't get scholarships, and they're willing to work and maybe take out loans to cover the rest, then I have no problem with them taking responsibility and making a plan on their own. Just need to wait and see what each kid is like before he is ready to enroll. And hopefully as parents we'll make the right choice as to how to best help them be their own man but also provide the support necessary. That's what it's all about, isn't it?

[forevereagle]

Going to add to UNTFan23's thoughts here since they apply to me in the same way. I did work while our parents paid for school. Summer jobs, etc. I will be paying for college, just not my own. The condition for my college being paid for was that i would pay for my children's college. I have already started planning for that. I don't know if that works for everyone, but I take it very seriously.

[SCREAMING EAGLE-66]

I worked summer jobs (Philmont for one) which I then used money I earned during the school year to pay bills and my fun times. I also worked Retail or Banking jobs when I was working PT while going to school. I actually posted my worst grades while working and going to school at the same time, so not working worked out better for me.

If you work for a store for Walmart I can see where that might have some weight but many of the current store managers started out at the entry level, so it is possible to work your way up in the retail world food chain. I personally worked retail in high school and some in college. Today I work in the IT department and work on projects that have real impacts for the company. I've even been awarded several awards for the work I've done.

I just take exception to the notion that having your parents pay for your college is a bad decision when my accomplishments directly contradict your opinion. Your "one-size-fits-all" idea just doesn't work for everyone.

..

You are doing great ...but I have seen so many who just spent "daddy's money" and had a good time. I still say for most contributing (even summer jobs which you had ) and using some of it for educational expenses is a good lesson for most kids.... I never meant one size fits all .... but a lot of kids need to learn the value of a dollar... [ see how many huge student loans many have ] They never think about what it will take to pay them off. As my older son recently told me... " I worked hard in college with a meaningful major so he could have the resources to do as he wanted to later... too many take the easy way out, and just have a good time and major in something that is easier and maybe just fun... but have few opportunities at a good salary after graduation..

Working and going to school isn't impossible ... #1 son had a full-time job as an engineer while getting his MBA and was working full-time in the semiconductor industry while going to law school ... He finished it in 3.5 years with great grades. I also did just as well with a part time job as when I didn't .... budgeted time much better.

---As I have told my students.... getting an good education is the best paying job you will ever have.... you won't get paid this week or next .... but will likely receive better paychecks the rest of your life. People get paid for what they know and what they can do.

Edited August 5, 2013 by SCREAMING EAGLE-66

[forevereagle]

..

You are doing great ...but I have seen so many who just spent "daddy's money" and had a good time.

That's because their parents didn't hold them accountable. If I had failed, the money was going to go away. You are making generalizations about a lot of people based on your anecdotal observations.

[LongJim]

That's because their parents didn't hold them accountable. If I had failed, the money was going to go away. You are making generalizations about a lot of people based on your anecdotal observations.

Nah, I didn't get that. I think he's just giving his opinions based on his experience, which is a valid tack. It's not going to apply to everyone, and he said as much. You are right in that accountability is the overarching factor.