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I -- -- until I allow funds and Boston right now mile.
Hey aria yeah shine senior editor and thank you for coming neck on the web -- I'm happy to be here case no I don't -- by surprise amusement latest -- -- say it.
On Wall Street Journal -- -- study this morning and they shown that and it's this is shocking.
That you -- making up to 205000.
Dollars a year are increasingly having trouble sending their kids to college.
Yeah yeah -- is an American families taking on more and more in debt to the tune of 33000 dollars on -- -- And three million American families out there are 151000.
In student debt so yeah number and -- Chile.
Right I mean I guess nose and the people can't get loans as easily -- nonetheless.
Costs rising huge deal.
What do you now -- is happening well.
A lot of their kids were heading off to start -- stay here now are also starting the college process of this is.
A perfect time for parents to sit with the kids and really try to make that decision as a family.
I'm and consider whether there -- certain college it's just out of your range whether it's not -- -- putting in that money for that particular education.
A lot of the other top tier state schools and who -- just as good and weigh less expensive debt -- those brand name ivy -- where you're paying you know 50000 dollars a year.
Four and we're really -- name.
So decided Larry how are you wanna go how are you want to travel.
On whether it's worth living at home for a lot of kids that savings is definitely worth.
So the college stream is quickly changing from many people you know as the real cost of attending -- Is also changing here's some in the number -- -- you guys now if you look at the 2009 to 2010 academic year.
That an average cost at a public institution four year degree.
Only wants thirteen thousand dollars and 32000.
And a private institutions and doesn't numbers and it really high and if you and -- and -- big weight increased.
Even the kids really need to -- not just where they wanna go but what they want to study.
And college is -- time for experimentation.
I mean take underwater basket weaving if you can't it's not going to be able to ones are holding -- on the job and a mortgage and everything we can't let you can't guess based on what you think your kids want to study.
Roughly how much they'll be making -- year once they graduate.
And then you can have a baseline from which to decide how much of that you wanna dedicates paid back tomorrow.
Are you sends another -- are you saying that may be more senior high school seniors should know what they want -- major and ballpark idea -- you really wanna go a long way -- know really I'm gonna be earning a lot right away and I don't know I was just speaking -- high school couple months ago.
Yen are now listening complained that the parents and his -- -- like.
He doesn't know she doesn't know which wants to do I can't fault them for so what do we do in the meantime -- -- in the end.
Well -- got it spot you don't need.
You know exactly where you wanna go -- you don't even declare your major actually junior year.
So of -- college.
So that you can get a general idea of roughly how much you make spring -- is 35 grand a year reasonable use sixty grand a year reasonable -- it's forty grander Erie reasonable and decide how much of that you want to dedicate to college round loan repayment.
And then working there if you had X amount to repay the loan once you graduate how much money can you buyouts that -- What are some other -- -- give us on cutting down on college expenses.
Well one way is kinda it.
Kind of chilling also if you figure out how much all for years and cost -- and then make a payment plans starting right up at the bet that at the back so that you be paying it as you go compact when you graduate you'll have a lot less of the principal to deal let's.
You can also a lot of work out those figures and get exactly what you need planned to work while you're in school plan to apply for scholarships.
Work study programs.
And try to minimize the amount you want to borrow.
There -- also different types of loans that are better for different types of family mean -- that big government loans tend to be better because they have lower interest rates and more flexible repayment terms.
Private loans are putting in on a credit card which some people still allow bad idea because then you're paying really high interest rates and you might not make enough to pay it off in -- shorten up.
Time I guess people did advocacy again miles and -- and -- who do you.
I like candidate I'm.
Always -- MI parents pay for college but I know that and on the credit card lending business couple of -- vacations off that.
I don't yet know that that's a good point and up -- something to watch out for until we make love love the fact that more parents are shouldering the burden of paying for college on to.
-- moon on the one hand I think here you're learning how to be an adult and managing your budget your finances as part of that.
And I put myself through school so it's doable -- it's not always easy that it's very doable.
I think that kids and their parents should sit down and have a very honest discussion about what's expected from each party.
How much did -- kids expect their parents to pay how much can the parents -- leak.
-- into their education.
And -- think there's the balance between those two things.
This -- for in a pristine institutions for the I really -- colleges and universities and great reputations are hard to get entail.
Are we gonna see and I know last -- the number mom.
Applicants was up dramatically and many of them but -- CNN start to taper off as many Smart rolling kids are saying I can't afford us.
To an extent -- just keep in mind for those those top tier Ivy League schools.
They're getting more applications -- -- not necessarily taking more students.
So it's not that the 1%.
The -- highest achievers city schools are no longer able to apply they're they're competing against all the other top and students at all the other schools.
So I'm not sure that that's going to change so much.
But I do think that people are becoming very very schools sappy.
They're realizing that some of the non top tier schools the second and third tier that are also charging 5060000.
-- -- -- may not be worth that money.
If you're -- if you're racking up -- -- -- for a well it's funny -- thousand dollars worth of debt -- year.
And you're gonna graduate and only be making 30000 dollars -- that investment may not pay off.
Now let -- stay with me I just wanna go into the -- right now analyst at -- and I really is overrated.
And limited an application there are many good and grade education institutions that are much cheaper.
And -- -- the graduate better regional connections like the University of Florida.
They're highly regarded in the south.
He says he's making that point.
That we just name and then David Larson writes an almost all the colleges are out of people's price range -- -- government.
Blitz helped make the costs go up plus the colleges don't spend their money and -- but spending it to give them the spring vacation feeling.
All year long -- pretty dismal -- -- I think it does depend on the school a lot of schools have students who are painful break and so they're catering to those students by making it very luxurious experience month or other students who aren't in that situation and they're looking to find the best value for their money right.
Tim -- or do you have any instances of admission committees and boards who accepts students who they know that they could pay -- -- yes I think that happens a lot because it's big schools have endowments but they also make money on tuition -- they get the money with which to -- -- campus.
By Aaron by paying people to pay tuition.
Him well Alfonse Yahoo! shine senior editor thank you for coming on and sharing.
That's pretty -- morning as the high paying college and then of course to graduate school assessment everybody's trying to do these days straight.
-- plans -- Pratt school.
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