Fancy degree brings $275,000 in debt

[Liberal_in_LA]

http://www.cnn.com/video/#/video/us/2010/05/25/am.cho.college.costs.part.2.cnn?hpt=T3

Added On May 25, 2010
CNN's Alina Cho talks to a recent graduate loaded down with $275,000 in student debt. 4 years at NYU.

[Captain Hilts]

1. But you are FAR more likely to get into a prestigious graduate school, marry someone wealthy, etc.

I saw in the WSJ a list of the top 30 universities to get you into a prestigious graduate program and only three out of thirty were public schools: Berkeley, UVA and UMich.

[readmoreoften]

6. Unless you're a student who has to work instead of partying, socializing, or interning.

As someone who taught at NYU and saw this first hand: no working or "middle class" student has any business being there. Success at the school is largely connected to internships in the city. If you can't afford to pay $50K tuition, wear fancy designer clothes, AND work full-time for free, then don't bother attending. I've helped students transfer out when they realized this. Unless you're in the film program--maybe the business school (big maybe)--I'd say go elsewhere for undergrad.

[Captain Hilts]

7. I've been a poor kid at a rich school. You make contacts there you don't at

a lower tier one.

[onehandle]

2. I would have had sympathy until I heard 'Business Degree.'

You don't need NYU for that. He should have taken the scholarship.

[Cant trust em]

5. MBAs should cost through the nose, not a bachelors.

Bachelors don't give you much more than generic skills. Taking on significant debt could be beneficial if you're able to leverage your degree into networking and career services that good schools with serious alumni connections can offer. That just doesn't exist for undergraduate programs.

[pipi_k]

3. Yet another example of how

time and experience can often expose some really bad decisions made when we're younger.

I saw this on the news this morning.

The guy said he's sorry he didn't accept the scholarship to the other, less prestigious college instead.

The excitement of being in NYC appealed to his not-fully-developed 18 year old brain.

Hey. Ya live and ya learn.

:shrug:

[Cant trust em]

4. I wonder what this kid's family background is like.

A lot of kids wind up in this situation when their parents didn't go to college and have knowledge of the financial aid process, etc.

[jdlh8894]

8. Don't see what the parents have to do with it.

The "kid" was of legal age when he signed on to these loans.Let the chips fall!!

[Cant trust em]

9. So when kids turn 18, their parents just aren't supposed to give them advice anymore?

Shit, I'm 30 and I hope that if I was about to make a really bad financial decision, my parents would share some knowledge with me.

[jdlh8894]

11. Sure,you can give them advice.

But ,making the decision???? That's on their ass!

[Cant trust em]

12. Clearly, but my point is that...

I'd be interested to see what the family's socio-economic status is.

Is this kid the first in his family to have this opportunity, so there's a lack of generational knowledge getting passed down? This is a pretty common story.

[Berry Cool]

14. I was a first-generation student too, and my mother and I knew nothing.

We didn't know there were huge cost differences between schools or that this school was significantly more prestigious than that school. We were clueless. I would definitely not approach such a decision again with as little knowledge as we had.

[pipi_k]

13. Welllll....knowing how 18 year olds can be....

I would imagine that he may have gotten some advice from his parents (as in, "Take the scholarship, son!") but probably ignored it.

The reason why I think this is because of what he implied about the big thrill of living in NYC at the age of 18. I think he let emotion overrule common sense...

[aikoaiko]

10. I don't have any sympathy. He had a full ride someone where else

But he chose NYU and debt, instead.

Its true, that NYU was likely a better school than the one that offered the scholarship and maybe he did make great networking contacts, but that was a gamble on his part that those things would pay off to cover his debts.