Maximizing Your College Education Investment

The price of four years at a brand-name state university is approaching $75,000. At a brand-name private college, close to $200,000. And most students take more than four years.

With the possible exception of your home, your child’s college education is the largest purchase you’ll probably ever make, especially if you have two or more children. How do you maximize the value of your investment?

Choosing a College

These recommendations integrate the research findings from the Carnegie Foundation combined with my own years of experience as a college and career counselor.

If your child is Ivy caliber and aspires to a career that insists on a designer-label diploma such as investment banking or corporate law, it’s worth paying even the sticker price of an elite private college such as an Ivy or Stanford and certainly the price of an elite public institution such as Berkeley, UCLA, or the University of Virginia. While these schools have large classes taught by research- rather than teaching-focused professors, and these schools can be pressure cookers, the lifetime income and status gains are typically worth it. In addition, students grow a great deal from spending four years around the nation’s best and brightest.

For most other Ivy-caliber students, for example, those aspiring to be physicians, executives, public-interest attorneys, or other careers in a non-profit or government agency, the best payback probably comes from attending an elite public university. There are ample opportunities for challenge by taking difficult classes and honors programs, and the Ivy-caliber student at these institutions will stand out and thus be tapped for campus leadership positions, opportunities to work one-on-one with professors, which in turn, leads to great recommendations and leads on good jobs.

One client I had, for example, turned down Williams College, one of the nation’s most selective to attend UCLA that cost 75 percent less. There, as a brighter star among lesser lights, she stood out and so got leads into a job working for the White House. If she were at Williams, she probably would not have reaped such an opportunity.

If, however, your family income is less than $50,000 a year and are admitted to an elite private college, your child should probably go. In that case, you’ll probably get enough financial aid to justify it.

If your child is not Ivy caliber and your family income is under $70,000, a small private college probably is the wisest choice. You would get little financial aid at a public university and significant aid from the better and well-endowed privates such as Grinnell, Santa Clara, Guilford, Beloit, College of Wooster, and St. Johns (MD and NM). At such institutions, your child will be taught by dedicated accessible teachers in classes small enough to provide detailed feedback on writing assignments, and to require your child to be prepared for class lest he be called on and left dumbfounded. The campus culture at these institutions is also good for promoting student growth as human beings.

If you have a not-Ivy-caliber child and your family income is much more than $70,000, the balance generally tips in favor of attending one of your state’s well-regarded public universities such as Indiana University, Wisconsin-Madison, Penn State, Oregon State, and the Universities of North Carolina and Washington. Consider in-state schools because out-of-state tuition is usually usurious. Why State U? Because for families earning more than around $70,000, the private colleges will offer little aid, and there are ample benefits of the public university: larger choice of courses and professors, more clubs, library and athletic resources, a bigger alumni network. You might ask, “But shouldn’t we decide whether our child should to a large versus small college based on whether he’d feel comfortable in a large college? With a bit of guidance (provided below) it is easy to make a large university feel small and homey enough.

A word about large non-elite private universities such as the Universities of Southern California and Miami, and Boston, Syracuse, and Tulane Universities. These are rarely worth the money. Not only are they nearly as expensive as an Ivy without the prestige, the most frequently taken classes are usually large and taught by research- rather than teaching-oriented professors. If you’re going to spring for the money for a non-elite private college, small one are usually wiser choices.