Program-Specific Info / Q's Which choice is better?

[LeggOT]

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Hey everyone,

Is it better to go to a program that starts a year earlier for $74,000 in tuition or to go to a program that starts a year later and costs $36,000 in tuition? In my mind it would equal out, because I would be working for a year already and would hopefully cut my debt in half, assuming a live frugally and do Dave Ramsey's debt snowball. What do ya'll think about this?

 

[old noob]

Dave Ramsey would ask you, if you had cold hard cash, what would your decision be? To pay 74K or wait a year and pay 36K?

$38,000 difference = 1055 hours days at a conservative $36/hr rate you would have to work extra to pay off the debt. That's 132 days of straight extra work days to pay off the difference. Also that's pretax, so after tax, the days to even is much more.

Meaning... if you were paying off the difference in one year, you'd be living off 250 typical work days a year minus 132=118 days of work, at $36/hr rate, approximately $34,000 PRETAX. After tax, you'll be living off around $26,000 for a year to pay off the differential in tuition costs. It's not in human nature to be that disciplined, especially when you start feeling like rewarding yourself for having completed a program and reached the finish line... which is actually not the finish line.

I'm in a similar situation. The likelihood of getting into the private and expensive Uni is higher, but with regular Uni, I might not get in. I'm paying with savings so my situation is different. Credit/loan feels different, but when deciding to put down cash, (as Dave Ramsey talks about with his cash in envelope system), it's instinctively easier to be frugal since it hurts more. Especially when without loans, it can be invested in the market and grow. With loans you have to take the opposite of that into consideration. 74K vs 36K... the interest differential needs to be taken into account as well.

I like the truism, "Getting money is like digging with a needle; spending it is like water soaking into sand."

38K is alot of digging with a needle.

 

[Asantana53]

What is the approximate cost of living for each school?

In my opinion, waiting for the cheaper school is a better option. I agree with old noob, $38,000 is a lot of money.

I know there's pressure to get a higher degree or have your dream career by a certain age. But, are you really going to lose a lot by waiting one more year? You can be productive while you wait perhaps save money for your cost of living.

 

[LeggOT]

Dave Ramsey would ask you, if you had cold hard cash, what would your decision be? To pay 74K or wait a year and pay 36K?

$38,000 difference = 1055 hours days at a conservative $36/hr rate you would have to work extra to pay off the debt. That's 132 days of straight extra work days to pay off the difference. Also that's pretax, so after tax, the days to even is much more.

Meaning... if you were paying off the difference in one year, you'd be living off 250 typical work days a year minus 132=118 days of work, at $36/hr rate, approximately $34,000 PRETAX. After tax, you'll be living off around $26,000 for a year to pay off the differential in tuition costs. It's not in human nature to be that disciplined, especially when you start feeling like rewarding yourself for having completed a program and reached the finish line... which is actually not the finish line.

I'm in a similar situation. The likelihood of getting into the private and expensive Uni is higher, but with regular Uni, I might not get in. I'm paying with savings so my situation is different. Credit/loan feels different, but when deciding to put down cash, (as Dave Ramsey talks about with his cash in envelope system), it's instinctively easier to be frugal since it hurts more. Especially when without loans, it can be invested in the market and grow. With loans you have to take the opposite of that into consideration. 74K vs 36K... the interest differential needs to be taken into account as well.

I like the truism, "Getting money is like digging with a needle; spending it is like water soaking into sand."

38K is alot of digging with a needle.

True! Thanks for the help. Yes, I haven't really considered the other factors that much besides tuition. I guess it's pretty clear now.

 

[Erhe]

Don't forget to apply interest and taxes to whatever math you're doing.

 

[Finalchuckle]

Hey everyone,

Is it better to go to a program that starts a year earlier for $74,000 in tuition or to go to a program that starts a year later and costs $36,000 in tuition? In my mind it would equal out, because I would be working for a year already and would hopefully cut my debt in half, assuming a live frugally and do Dave Ramsey's debt snowball. What do ya'll think about this?

Were you accepted into both programs already or are you planning ahead?

 

[LeggOT]

Were you accepted into both programs already or are you planning ahead?

Planning Ahead.

 

[Finalchuckle]

I would apply to both.

Getting into a program is not easy, and getting into a program that is less expensive gets more difficult to get into due to more applicants