I've been following a great discussion in the Financial Aid forum regarding how much "skin in the game" should a kid have when it comes to paying for college. It got me thinking about our personal situation and I didn't want to highjack that thread so thought I would post here. Our daughter applied to ten schools and was accepted at seven with varying degrees of merit aid. The remaining "big three" are reaches yet we feel she has a good shot for acceptance, but probably won't receive much, if any aid. She is interested in studying Business and premed, so medical school may be in her future, but at this point who really knows (like many, she may not survive O Chem). We are fortunate enough to able to afford all her choices with varying degrees of sacrifice, however, if med school becomes a reality, it will be on her.
Since college selection will be her first real adult decision, I don't want it to be an emontional one based on perceived "prestige," and was thinking about using money as a way to make it a more practical decision. She likes all her school choices, but the OOS privates are more appealing. So I'm am debating whether to tell her that if she chooses to attend one of the seven which we can more easily afford, we will give her $40K after she graduates in four years to use as she pleases. However, if she chooses one of the "big three" she will have to take out $27K (roughly 10% of the COA) in direct loans to cover the costs. Although I don't like to saddle her with debt, $27K is like having a new car note and think it is fair price for a great education at a private U. Thoughts?
Also, I believe there is value in attending a big name private university and don't want this to turn into a discussion of State U vs. Private. Thanks!
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