Will Disney pass their new found wealth to the CM's ?

[CaptainAmerica]

25k you got off easy... 20+K/yr is the cost of PUBLIC instate schools now. And not everyone is going to graduate making 100k.. most are lucky to be making 60k. You can't dedicate 75% of your cleared money to paying off debt and still live.

Any school worth its salt that's charging big tuition dollars also gives generous financial aid. I got over $40K in need-based scholarships every year, not because I was any type of super-genius, but because my family didn't have the money to write a check that size. Also, I graduated making $55K, not $100K. I absolutely did dedicate 75% of my cleared money to paying off debt and I lived just fine.

The college situation right now is unsustainable. But I agree more with the other poster who said doesn't matter how educated are... if you targeted the wrong thing.

Too many people went through school and early life with the mantra "you can do anything you want!!" - and think the world owes them what they want. Instead of looking at the opportunities out there and mapping a path through them.

This part, I agree with.

 

[aw14]

I supervise a staff of over 100 teachers and support staff. She of them are in the millennial age group. I have to say, by and large, they are the most entitled group. Constantly wanting more pay, more perks,etc...

I can remember being a non-tenured teacher, and anytime an administrator asked me to do something, I did it. I referred to it as being volun-told. However, for the most part, most of them have had their educations paid for etc....While I had to pay for under grad and 2 masters degrees.

Just my 2 cents

 

[CaptainAmerica]

I supervise a staff of over 100 teachers and support staff. She of them are in the millennial age group. I have to say, by and large, they are the most entitled group. Constantly wanting more pay, more perks,etc...

I can remember being a non-tenured teacher, and anytime an administrator asked me to do something, I did it. I referred to it as being volun-told. However, for the most part, most of them have had their educations paid for etc....While I had to pay for under grad and 2 masters degrees.

Just my 2 cents

Am a millennial. Can confirm.

 

[larandtra]

And I would say you are an exception to the rule. Not meaning that as an insult. You are certainly in that smaller percentage who do not have blinders on. With age comes wisdom. I recall my grand parents and parents saying the same thing about my generation. As we got older we understood what they meant and why they felt that way

 

[John park hopper]

My middle son wanted to be a Marine Biologist and was accepted to several schools. I had long conversation with him as I was vey familiar with the job prospects in that field -simply unless you have a PhD there are no jobs for all the BS and MS degreed graduates. I pointed out to him all the years of schooling and the cost he would be lucky to make 70k with a PhD well into his career I told him if he liked scuba diving (which he does) go to pharmacy school one of the few times he listened to me. Six years he came out with a PhD in Pharmacy doing nuclear pharmacy making 150K. Yes he inccured loans but within 5 years paid them all off. He vacations and dives when he wants. The point is you have to go to college with a plan to get a degree in maketable skill. As others have said too many go to college for usless degrees and rack up debt (they can never pay) because they want to continue to live like they did when mommy and daddy paid all their bills

 

[The_Jobu]

I genuinely feel bad for how much it costs to go to university in the US. It really dictates perspective.

 

[OneofThree]

I genuinely feel bad for how much it costs to go to university in the US. It really dictates perspective.

It's a complete racket. The majority of schools and programs are garbage and grade inflation is prevalent. Subsequently, degrees are conferred to individuals who still seem to struggle to form complete sentences. The result -a degree means nothing, and HR professionals continually complain that graduating students are completely ill-prepared for placement. We've got 5 children to put through school. The costs we're looking are like monopoly money.

 

[CaptainAmerica]

I genuinely feel bad for how much it costs to go to university in the US. It really dictates perspective.

It doesn't cost as much as you think. Financial aid is extremely generous at most universities. Nobody is paying the "list" tuition price except for the very wealthy.

Unfortunately, every time our politicians try to "fix" high tuition costs, then end up exacerbating the problem. They think expanding grant and loan programs helps students. Instead, those programs just lead to higher tuition rates. Students aren't savvy consumers, and they look at loans like "free money." If a student has zero access to student loans, he might pick an in-state school with tuition of $10,000. If, all of a sudden, he has access to $10,000 in grants and $20,000 in loans, now he's looking a private schools with tuition of $40,000. He thinks he's "better off" because he looks at the loan as free money and doesn't make his value calculations with that in mind.

 

[CaptainAmerica]

It's a complete racket. The majority of schools and programs are garbage and grade inflation is prevalent. Subsequently, degrees are conferred to individuals who still seem to struggle to form complete sentences. The result -a degree means nothing, and HR professionals continually complain that graduating students are completely ill-prepared for placement. We've got 5 children to put through school. The costs we're looking are like monopoly money.

100 Percent Meet Need Colleges

There are something like 80 schools on that list.

 

[The_Jobu]

We've got 5 children to put through school. The costs we're looking are like monopoly money.

You have my sympathy!

Financial aid is extremely generous at most universities.

All I ever hear is the tremendous debt students get into. It all seems very intimidating to me.

 

[CaptainAmerica]

All I ever hear is the tremendous debt students get into. It all seems very intimidating to me.

The "average" debt figures are skewed by the exceptionally irresponsible students. The graduates of the last ten years are extremely entitled. If they don't get exactly the job at exactly the salary in exactly the right city when they're undergraduates, the default is to immediately apply to graduate school. This is a problem for several reasons. First, graduate school is relatively useless for those with zero experience (with some exceptions). Second, graduate programs rarely offer the types of financial aid that undergrads get. Third, not only are they acquiring more debt, but they're delaying the income that would otherwise be used to pay off the first batch of debt.

I like the analogy of a hole and a shovel. As long as the hole you dig is proportional to the size shovel you're going to use to get yourself out of it, you should be okay. Doctors dig a huge hole but they also graduate with a huge shovel. Lawyers dig a doctor-size hole but graduate with a much smaller shovel. Master of Women's Studies graduates have a big hole and no shovel at all.

 

[OneofThree]

100 Percent Meet Need Colleges

There are something like 80 schools on that list.

That's great, but student loan debt is a part that equation. As an accountant, I live by the rule that the only good reason to take on debt is if it ultimately benefits the bottom line. I don't feel that student loans fall in that category and want to avoid having my kids begin their financial lives in debt, if at all possible.

 

[The_Jobu]

I like the analogy of a hole and a shovel. As long as the hole you dig is proportional to the size shovel you're going to use to get yourself out of it, you should be okay. Doctors dig a huge hole but they also graduate with a huge shovel. Lawyers dig a doctor-size hole but graduate with a much smaller shovel. Master of Women's Studies graduates have a big hole and no shovel at all.

That makes sense. I suppose the equivalent for where I'm from is the W. Studies grad still has no shovel but the hole is much smaller.

 

[aw14]

My middle son wanted to be a Marine Biologist and was accepted to several schools. I had long conversation with him as I was vey familiar with the job prospects in that field -simply unless you have a PhD there are no jobs for all the BS and MS degreed graduates. I pointed out to him all the years of schooling and the cost he would be lucky to make 70k with a PhD well into his career I told him if he liked scuba diving (which he does) go to pharmacy school one of the few times he listened to me. Six years he came out with a PhD in Pharmacy doing nuclear pharmacy making 150K. Yes he inccured loans but within 5 years paid them all off. He vacations and dives when he wants. The point is you have to go to college with a plan to get a degree in maketable skill. As others have said too many go to college for usless degrees and rack up debt (they can never pay) because they want to continue to live like they did when mommy and daddy paid all their bills

100% agree...

to quote Ben Shapire...too many go and get a degree in Lesbian Dance Theory and expect a 6-figure income.

 

[CaptainAmerica]

That's great, but student loan debt is a part that equation. As an accountant, I live by the rule that the only good reason to take on debt is if it ultimately benefits the bottom line. I don't feel that student loans fall in that category and want to avoid having my kids begin their financial lives in debt, if at all possible.

Very rough math, since you're an accountant:

Graduation age: 22
Retirement age: 65
Starting salary (no debt degree): $45,000
Starting salary (debt-financed degree): $49,500
Beginning balance of student loan liability: ($30,000)
Annual merit increase: 2.5%
Discount rate: 8%

In other words, here's what happens if you take out $30,000 of student loan debt in order to graduate from a more prestigious university that will earn you an expected starting salary that's 10% higher than a less prestigious school from which you can graduate debt free.

Break-even occurs at age 28 (nominal dollars) or age 30 (discounted cash flow).

Net lifetime benefit is $323,485 (nominal dollars) or $43,614 (discounted cash flow).

 

[flynnibus]

Any school worth its salt that's charging big tuition dollars also gives generous financial aid. I got over $40K in need-based scholarships every year, not because I was any type of super-genius, but because my family didn't have the money to write a check that size.

Private schools with endowments.. sure. Know how much financial aid my kids were offered? 5k federal loans. And that's with the family having multiple kids in college at the same time. How much money do you think I should be making to be able to afford 60k/year in college payments outright to pay for two kids in school.. in addition to my normal life? That's nearly 80k in earnings a year just to pay for school for my kids. As if I were just buying a vette every year just for fun...

55k - 25% for taxes = 41.2 - 75% leaves $10.3k a year to live. Didn't everyone just say you can't live on minimum wage? $900/month you have extra circumstances to really make it work... like carrying in a car you had previously, where you live, living at home or in cheap shared housing, someone else's insurance, etc.

$600/mon won't even get you a room in a shared house to rent within 50miles of me.

Now imagine getting a $1000 repair bill like I just did yesterday... how does someone living on 10k a year in total pay a $1k bill that if they don't... they can't get to work?

The numbers are so far out of wack these days... even what I was able to do 20+ years ago don't even apply today.

 

[OneofThree]

Very rough math, since you're an accountant:

Graduation age: 22
Retirement age: 65
Starting salary (no debt degree): $45,000
Starting salary (debt-financed degree): $49,500
Beginning balance of student loan liability: ($30,000)
Annual merit increase: 2.5%
Discount rate: 8%

In other words, here's what happens if you take out $30,000 of student loan debt in order to graduate from a more prestigious university that will earn you an expected starting salary that's 10% higher than a less prestigious school from which you can graduate debt free.

Break-even occurs at age 28 (nominal dollars) or age 30 (discounted cash flow).

Net lifetime benefit is $323,485 (nominal dollars) or $43,614 (discounted cash flow).

I think we can agree that this is an oversimplified picture on a number of fronts, but I understand what you are trying to say. Despite the financial burden, the attending of a premiere program and the avoidance of debt (up to the tune of 6%-7%) are not necessarily exclusive. Consider for a moment, the lifetime net difference between student loan payments up to age 28 and retirement contributions over that same period.

 

[21stamps]

That's great, but student loan debt is a part that equation. As an accountant, I live by the rule that the only good reason to take on debt is if it ultimately benefits the bottom line. I don't feel that student loans fall in that category and want to avoid having my kids begin their financial lives in debt, if at all possible.

I just had a conversation about this on Wednesday night with a few other parents from our school. They made some good points that I’m now considering.

By the time my son graduates high school, I will have spent well over $130,000 on his education. I had planned to pay for his undergrad, which is what my parents did for us, we were responsible for loans after that.

He should be set up to obtain some scholarships. Im starting to rethink my original college plan for him, maybe cover some the difference by adding another 25% of what’s left over, and make him take out loans for the rest.
The point a few parents made was “Is it really so bad to have some skin in the game at that point?”

Luckily, I have several years to think about it.

 

[OneofThree]

I just had a conversation about this on Wednesday night with a few other parents from our school. They made some good points that I’m now considering.

By the time my son graduates high school, I will have spent well over $130,000 on his education. I had planned to pay for his undergrad, which is what my parents did for us, we were responsible for loans after that.

He should be set up to obtain some scholarships. Im starting to rethink my original college, maybe cover some the difference by adding another 25% of what’s left over, and make him take out loans for the rest.
The point a few parents made was “Is it really so bad to have some skin in the game at that point?”

Luckily, I have several years to think about it.

I agree in theory, but I also feel like the economic environment the kids will contend with moving forward is a bit different from I had to deal with. Increasingly, financial security is less a function of wages and more a function of portfolio investment. IMO, this is evidenced by an enormous consolidation of wealth. There are a number of significant concerns regarding labor markets that even the most brilliant economists lack answers for. For this reason, I believe it's crucial that people are immediately able to invest a certain percentage of earnings. Debt represents just the opposite, IMO.

 

[flynnibus]

If a student has zero access to student loans, he might pick an in-state school with tuition of $10,000. If, all of a sudden, he has access to $10,000 in grants and $20,000 in loans, now he's looking a private schools with tuition of $40,000. He thinks he's "better off" because he looks at the loan as free money and doesn't make his value calculations with that in mind.

10k? Dose of reality here...

These are the public state schools in Virginia. You'll note that even COMMUNITY college is 4500 to start.

I had to pay 37k/yr for PUBLIC out of state school. Tuition rates have been compounding like mad over the last decade.

100 Percent Meet Need Colleges

There are something like 80 schools on that list.

Did you even read the details? Like "needs met" if your family has less than 50k in assets. Such a list is not representative at all about the tuition landscape of what people face.

And just jettisoning my kids and pretending they are 'independent' doesn't work either...

The other sad part is you teach your kids to save for their future... and have assets beyond what they need to live month to month.. and those assets count against you in your 'need' calculations. They'd rather you cash out everything you have now to pay for school and put all your financial security in the toilet...

Great lesson to teach young people...