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Expensive
vs. Inexpensive Colleges
Courtesy of: MomsBudget.com, © 2001
Most
parents today do whatever it takes to pay for the college of their
kid's choice.
They think it's their duty to give their kids an advantage in life.
But is
there really an advantage to an expensive college?
On
the parents side there is really no advantage. The parents are often
left in a financial disaster after they've taken a second mortgage,
liquidated their 401(k), and even taken second jobs. And now a study
has been released by the National Bureau of Economic Research that
answers the question "Is there
an economic advantage to attending a selective college?"
The
research team tracked the 1976 freshman class of 30 schools ranging
from prestigious
Yale University to public schools such as Pennsylvania State University.
They compared the earnings of students who attended such prestigious
schools with kids who were accepted to those schools but chose to
attend
the cheaper schools.
The
results are not surprising if you think about it. Based on SAT and
other scores, the smart talented kids who attended no-name schools,
are doing just as well in their careers as the kids who chose the
Ivy League schools. The only difference: the kids who went to the
cheaper school aren't as far in debt.
Starting
your life after college is hard enough without having to worry about
paying
$40,000 in school loans when you only make $30,000 a year. Keep
in mind
also that a degree from Yale doesn't ensure your child's success.
An employer
is more concerned with your child's ability to do the job, than
where their
degree is from.
If
your child is bright, it doesn't matter what school she attends,
she'll likely do well. Evaluate the merits of the school your child
wants to attend against the costs and make an informed decision.
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Copyright 2001 MomsBudget.com - Providing financial resources for
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