Quote from: Gregory Sager on April 09, 2009, 11:14:10 AMQuote from: Mr. Ypsi on April 08, 2009, 06:32:05 PM
The 'bottom line' difference between publics and privates is not nearly as large as the list prices would suggest. But I'm sure many students (and more relevantly, their parents) can't make it past the initial 'sticker shock'. And (while I haven't heard of it yet) it wouldn't surprise me if less 'well-endowed' privates had to cut back on financial aid, thus expanding the gap.
The bottom-line difference is smaller than list prices suggest, as Chuck said, but that bottom-line difference does not include the long-term debt incurred by students who opt for a private-school education and thus have to take out bank loans to pay for it. And since the long-term prospects for the economy are not looking much better than the short-term prospects, I think that the more astute families of college-bound students will be more chary of taking on long-term debt in order to finance a college education.
I actually thought chary was a misspelling and had to go to dictionary.com to find out there is a definition for it...well done. An advantage for private colleges - at least the one I attended - is the financial plan is generally guaranteed for the four years after a comprehensive review of what the family may or may not be able to contribute and is rather affordable for most, not all....it may be that way at public schools now as well, not sure...the APRs are usually low, 3 - 4 % and tax deductible $ for $ so actually if you consider the potential return, it's a great investment. There's incentive to complete in four years.