We\u2019re gathering your questions about all things money and finances. Then, we get your questions answered by the people who know best. Students are back in the classroom, but for some high schoolers, a big decision is looming. Calvin Buss from Godfrey in Madison County asked: \u201cWhen looking for a good college, do I look for the cheapest college that I can afford without having to take out loans? Or do I take out loans and go to the best college I can possibly afford? My thought behind it is: Will I meet the people that I need to get to those higher positions at a more expensive school or will I do just fine without meeting those people?\u201d<\/p>\n
Shari Greco Reiches, regional director at EP Wealth Advisors\u2019 Skokie office, said choosing which college to attend depends on what\u2019s right for you and your family. Reiches said she was one of seven children. When she was ready to go to college, her father said he would pay for a state school, but if she wanted to attend a private college she would have to finance it herself. She chose to attend the University of Illinois, majoring in accounting. <\/p>\n
Shari Greco Reiches, regional director at EP Wealth Advisors\u2019 Skokie office
\n\u201cI met some of my best friends there,\u201d she said. \u201cI actually met so many people that later on in my career [they helped] me find jobs, became my clients. So for me, going to the University of Illinois was a great decision because I left there without any loans.\u201d There are also benefits with attending a private college or top university such as an Ivy League. Reiches said she often had large classes with a teacher\u2019s assistant, but at some pricier schools, the class sizes can be much smaller. Students may often have a chance to connect directly with professors, and the networking opportunity can be beneficial, giving you a higher chance of meeting \u201cpeople from all over the country, if not the world.\u201d \u201cAnd having that prestigious degree will open doors, especially with your first job,\u201d she said.<\/p>\n
Parents should be clear with their child about what they\u2019re willing to pay toward college tuition and other costs, according to Reiches. \u201cParents, don\u2019t put your retirement at risk to pay for college because you can\u2019t get loans when you\u2019re in retirement,\u201d she said. \u201cMake sure that you have a financial plan and that you understand how much you\u2019re willing to pay and making sure that you still have the resources for your retirement.\u201d She also said students should apply to a range of colleges and see what type of financial aid, grants or merits they may receive. Based on the estimated costs and the financial aid package, a student should then pick the school that would be the best fit. \u201cPrestige should not be the one priority,\u201d she said.<\/p>\n
Some college graduates with pricey loans are having to spend 10 to 20 years paying off the balance. Reiches said before taking out a loan, estimate what your salary might be in your chosen career to see if you can manage a high monthly loan payment. The Occupation Outlook Handbook from the U.S. Department of Labor is one resource that offers estimated job salaries, she said. Another resource is a net price calculator that each school has on its website. Reiches said the tool can predict what a student\u2019s financial aid will be based on factors like credentials, net worth and money saved for college. \u201cBut remember the job market could be unpredictable, and finding a job in the field of your choice may be difficult. You may not like that job of being an engineer so take a lot of care once you know what your loan amount will be,\u201d she said. Also, if you have plans to attend graduate school, that can add costs. But Reiches said students are able to negotiate their financial aid package to reduce a loan\u2019s amount. \u201cThere is a lot of cons with taking student loans,\u201d she said. \u201cIt can add stress. … These loan payments affect your credit rating so it may delay buying your first home, maybe buying a vehicle and there may be other life choices, where if you\u2019re strapped with these loans you may not be able to switch jobs … take big vacations. I\u2019ve often seen it sometimes delays marriages … so really go in with your eyes wide open if you\u2019re going to get these loans.\u201d<\/p>\n
Whether you choose a state school or an Ivy League, Reiches said it\u2019s what you make of the college experience that can help you land your first job. \u201cI have found that if you are a smart motivated student, you\u2019re going to shine and get similar benefits \u2014 whether you go to your state school or you go to a prestigious school,\u201d she said. \u201cIt\u2019s how you get involved. It\u2019s your studies. It\u2019s your relationship with professors.\u201d She said if you\u2019re good at making connections, \u201cyou\u2019re going to make connections in the business world, regardless of what school you went to.\u201d<\/p>\n
The decision to attend the best college possible, even if it means taking out loans, or to opt for a cheaper school with no loans, is a personal one that depends on individual circumstances and priorities. While attending a prestigious university can open doors and provide valuable networking opportunities, it\u2019s also important to consider the potential burden of student loans and the impact they can have on future financial decisions. Ultimately, students and their families should carefully weigh the pros and cons, consider their financial situation and goals, and make an informed decision that works best for them.<\/p>\n
Q: What are the benefits of attending a prestigious university?
\nA: Attending a prestigious university can provide valuable networking opportunities, smaller class sizes, and direct access to professors, which can be beneficial for future career prospects.
\nQ: How can I determine if taking out student loans is right for me?
\nA: Consider your potential salary in your chosen career, the estimated costs of attending college, and the financial aid package offered by the school. You can also use resources like the Occupation Outlook Handbook and net price calculators to help make an informed decision.
\nQ: What are the potential drawbacks of taking out student loans?
\nA: Taking out student loans can add stress, affect your credit rating, and delay major life milestones like buying a home, getting married, or starting a family.
\nQ: Can I negotiate my financial aid package to reduce the amount of loans I need to take out?
\nA: Yes, students are often able to negotiate their financial aid package with the school to reduce the amount of loans needed.
\nQ: How important is prestige when choosing a college?
\nA: According to Reiches, prestige should not be the only priority when choosing a college. Consider factors like cost, financial aid, and the overall fit of the school to make an informed decision.<\/p>\n","protected":false},"excerpt":{"rendered":"
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