Christmas travel costs

Christmas travel costs:

• $47.50 – Fee to change ticket from Tuesday afternoon to Wednesday night.  Worth it, because it means I don’t have to go into work next Sunday (after spending all day Saturday taking finals).  But, if I so feel motivated, I can work Sunday and save vacation hours. (already paid)
• $10 – frequent flier mile ticket (already paid)
• $13 – Cab ride from my apartment to the airport (this is what it cost last time)
• $15 – to check my bag one way.  (My fare class is different on the way home, and I won’t be charged.  I don’t think.)
• $20  – Cab ride to my sister’s since I’m getting in at about midnight (estimated)
• $22 – Cab ride from LAX to my apartment.  It is more expensive to go FROM the airport because they tack on fees.  Might take the bus.

I’ve had my nose burried in my school notes all morning, and I need to keep going with that, but I am really really excited to go home and relax for awhile…. By the way, I have SIX hours of final exams next Saturday, so please pity me.  Thanks!

Planning to move!

We finally have a real plan for me moving. I’ll move as soon as my lease is up (adjusting for availability) to a place where the rent for a 1 bdrm or a glorified studio will range from $950 to $1100. This will be in January-March, and will save me at least $325/month immediately. Though moving is an expense on its own and it’ll probably be a wash at first. T will move in June or sooner (TBD). At that point, we’ll split the rent. Maybe 50/50, maybe some other way considering income… I’m really not concerned about that part. His rent is currently about $1000, so combined, we’ll be saving a ton. I like having a plan.

After living in the Midwest and paying $475 for a quite nice newly renovated one bedroom to myself, it took months before I could write out an LA style rent check without cringing. Now I don’t cringe, but there is still some amount of awe in handing over an amount equivalent to my parent’s mortgage. Last month, I handed them the check and they told me to wait while they looked up my rent. Apparently I had been paying 2 cents too little ever since March, and they wanted to be sure to get every penny they were owed. Ha.

Moving is a pain… but I’m still excited about it!

Other news:

• My grad school has accepted 1 of the 2 classes I requested to transfer from my previous graduate university. I think there was miscommunication on the second one, so I’m going to talk to someone. I took 3 legitimate graduate courses while working in Iowa, and if two of them can’t be applied towards my degree, I’m going to be annoyed.  UPDATE:  Still being a pain, but I’m not yet giving up!
• My student loan in-school deferment wasn’t processed before they took my money for November. I called them, and they said it will be done this week. I’m watching them! (They have screwed up so many times!)
• I voted!!! I was worried I hadn’t registered in time, but it turns out i had (even though the internet “are you registered?” site had no record of me). I’m excited to see what happens in the next few years. I hope Obama lives up to all the hope so many Americans have placed in him. I’m hopeful, and excited!
• It’s getting cold and I’m thinking I need (ok, want) some running pants. I’m thinking of adding a small “Fitness” category to my budget to cover shoes and other things I might need.
• I hate Open Enrollment. It is confusing! Too many choices!

Improving my Time Management

I joined that a second class for my MS degree Friday and did the first homework Friday night. (T helped a lot.  Thanks!)  I’m about six lectures (two weeks) behind and the next homework is already due Wednesday.  Eeek!  I wish I would have signed up for both right away, but I didn’t know it was allowed until mid-week last week.  Many full time students only take two courses a quarter (and do research), but one of mine is really quite basic.

Regardless, I’m going need to be strict with my time management to get through the semester.  Can you believe I just joined a class last week, and I’ll be taking the final December 13th?  My job is also going to be stressful through at least December, because I’m doing things I just don’t know how to do (yet).  My mode of operation for the past month has been “survive”, but I need to start moving towards “thrive”.

Here’s my new ideal schedule for maximum productivity:

Monday through Fridays:
6:15 -Get up (without hitting snooze!)
7:15 – Out the door
7:30 – Arrive at work (about 30 minutes earlier than my schedule has been lately)
12:00 – Half hour for lunch
4:00 – Leave work (work late as needed)
4:15 – Arrive home, run, shower (Mon, Tues, Thurs), drive to T’s (Wednesday), watch a lecture (Friday)
5:30 – Dinner (plus prepare extra for lunch)
6:00 – 9/9:30 Watch lectures, homework as needed (mon-thurs)
9/9:30 – 10:00 Relax, get ready for bed (watch Grey’s Anatomy…)
10:00 – Bed!

Saturday:
9:00 – Run, Shower
10:00 – 4:00 Homework (get next week’s assignments as complete as possible)

Sunday:
9:00 – 1:00 Homework, studying, lecture
Afternoon:  Groceries, cooking, etc.

I’ve been visiting T a couple times a week the past few weeks, but that doesn’t seem possible for the next few weeks.  I’ll still visit on Wednesdays, but I expect both of us to be working for the evening. He’ll come over on Fridays, as usual.  He plans on having a busy semester too, so we’ll both be working.

This doesn’t really allow for stupid errands (such as going to the DMV before work and discovering it is closed for Columbus day).  Blogging is usually done over lunch break or before bed, so we’ll see.  I was posting pretty much daily in the summer, but now it’s more sporadic (and I credit my use of the word sporadic to the movie Clueless).  I often read blogs and blog before work, but maybe that is not a good habit.

I left Sunday afternoon open (I do think grocery shopping is kind of fun!), but it would also be fine to take the morning off and work Sunday night.  During really busy weeks, maybe relaxing will have to be cut!   I can also cut Tuesday’s run and still get in 3 times a week.  That sounds ridiculously boring, but at least it is only for 2 months.

Of course, this is flexible, and I’m really hoping that there is more free time than this ideal schedule implies.  At least I won’t have time to spend any money!

Are online degrees real degrees?

Considering Another Class

I’m considering taking two classes this quarter instead of one. I have two days to decide. I’d complete my degree 4 months earlier, and the class I’m in is pretty easy. (It is pretty much an undergrad class that I’ve taken, but if they want to count it for my graduate degree, I’m all for it.) The teacher’s style seems quite straightforward. The homeworks should be pretty easy (though time consuming), though the exams will require some effort.

I’m hesitant because of the time commitment. Either way, I will finish my MS sometime in 2010. I doubt I’ll have the bandwidth to take two classes at once again, so maybe now is the time to seize that chance.

The side job thing isn’t really going anywhere. Given the market, I doubt start-ups are able to get much (any) venture capital right now, so I don’t anticipate my talents being needed. On the other hand, I’ve had a bad month or so and have been feeling pretty stressed/tired. Do I want to take on more work? And wasn’t I going to fill out the transfer credit paperwork? Or check on my student ID? Gah.

Why I do distance education in the first place

1. I can go to good schools, no matter where I live

I wanted to talk about online/distance education in a more general sense. I recently told some “real grad students” (full-time) I was getting my Masters degree online. Someone joked about the University of Phoenix Online and said online degrees are a big business these days. Yes, online education is big business these days, but no, it isn’t University of Phoenix! In fact, I’m going to your school! They scoffed at me for coming to the new graduate student picnic, but hey, I was invited! A lot of top universities are offering online programs, in part because they are quite cheap to run.

2. It is a good financial deal in my industry

They asked the price per a class, did some calculations and said I was really getting ripped off. “Nah, not really. My company pays for it all.” Up front, as well as my textbooks. And they pay me a real salary while I’m doing it, and some stock options when I finish. I’m not getting ripped off one bit! I didn’t brag to that extent, but I did want to be clear I was getting a great deal. Plus, you don’t have to survive on a stipend, can save for retirement, and get some perspective on the real world. While details may vary, almost all big companies in my industry will pay for your education.

3. For my career path, it is as good as a “regular” degree

I’ve also heard claims that the value of an online degree isn’t the same as their “real” degree. In my industry, it is nearly equivalent, as long as it from a real university (the kind that also has a respected regular program). In academia, they probably have more of a point. You probably wouldn’t go for an online degree if a PhD or research career is your calling. I know my opinion is skewed, but I really don’t see why anyone in my field would go full-time just for the MS (unless they got a fellowship, but those are often reserved for the PhDs).

4. I’m disciplined and basically awesome (or, I don’t mind having no life little free time)

There are downsides, of course–coursework eats into your spare time and you have to be self-disciplined. If you don’t do the work, you won’t pass, and your company won’t pay. You don’t get to live the student lifestyle (however, you also avoid campus outbreaks), and you will spend a lot of weekends catching up. Also, it takes longer than usual. In my case I’ve completed roughly 7 months, and I still have 1.5-2 years left. This doesn’t count my 9 month break I took when I moved to California. While I know “full-time” graduate students that stretch their M.S. over almost 2 years, T whipped through his in a academic year (9 months). While all my degree will cost me is time, I can see how that isn’t worth it to some people.

So, are they real degrees? Well, it depends, but usually, yes.  What do you think? Are online degrees respected in your field? Would your employer pay for part or all of yours?

Set yourself up for success while you are in college

Have you heard of the College Money Network? A group of college students and recent grads have banded together to provide YOU with helpful posts. They are running a sweet contest, asking bloggers (and blog readers) to share their best money management ideas for students. Check out the various members of the network for more ways to get extra entries. I am feeling lucky, and would really love a new Ipod Nano, so here is what I think every college student needs to hear to help your finances long term

The most important thing you can do while you are in school is make yourself employable for graduation. Don’t spend four years of their life (and who knows how much money) with nothing to show for it but friendships and photos (which are invaluable, but won’t pay your rent). Here are my tips for preparing for life after graduation. Feel free to add your own tips in the comments!

Make a resume as soon as you can. I didn’t make one until I was at least a sophomore. My boyfriend made one when he was a freshman. Because of that, he scored an internship after his freshman year, something that few people in our major are able to do. Take advantage of your career center and helpful friends and family members who have done a resume before.

Join some extracurriculars that interest you. Sample many activities, but you’ll likely end up spending most of your time on one or two. Look within your own department, there can be good networking opportunities there.

Get to know your professors, if possible. Some schools are good for this, and more, some classes. You may not have luck in a lecture class with 300 freshman, but in your major classes you should have better luck. Through chatting with my professors and doing well in school, I got the chance to be a paid lab researcher for a semester, a paid lab teaching assistant for another, and some nice letters of recommendation when I applied to graduate school.

Keep your grades up. I had a lot of classmates say that employers prefer well rounded students to high GPAs to justify less studying. This may be true, depending on where you are applying. However, there is no rule that says you can’t have a high GPA and be well-rounded! Find the methods of studying that work best for you. Sometimes it helps to study in groups (other times it is distracting, at least it was with my friends!), sometimes it helps to redo all the homework problems, and sometimes it is brute memorization. Don’t be afraid to use the professors office hours, and not just the day before the exam.

Study abroad. This isn’t for everyone, but I highly recommend everyone at least consider it. Think you can’t afford it? It is likely your school has exchange programs that make it almost equivalent. You may even be able to get a scholarship. Not only will this give you something interesting to talk about in your job interviews, it will be the time of your life.

Consider working part time, if you can, particularly if you can find something in your field (see “get to know your professors”). Not only will this provide extra spending money, it’ll force you to organize your time, and it demonstrates to a future employer you’ve got your stuff together. During my first interview for an internship, they commented not only on my school work, but the fact that I worked as a waitress and was used to dealing with, well, pretty much anyone. Don’t do this if your grades, activities, or happiness will suffer too much, but I knew a lot of people who were able to pull off part time jobs.

On Student Loans (again)

Are they “good debt”? Is there such thing? I will provide you with the definitive answer! (Ok, it is just my opinion, as is everything here.) I still get excited when someone links to me. Someone recently (not SO recent, since this post has been hanging in draft state for awhile) linked to an older post of mine, where I argued that the federal government’s investment in my education was a good thing, for me and for them. She is considering student loans, and asking the important question: How much is reasonable? How much is too much? Everyone should ask these questions before borrowing, but unfortunately, not all do.

College students are typically young and not financially savvy, and commercials (used to) abound offering you “Up to $40k a year!” for school. It makes me sick when I see those. That is rarely going to turn out to be good debt. If you can go to college without student loans, that is quite obviously the optimal solution. If you can’t, (I think) student loan debt can be a great investment if and only if (iff for math geeks):

• It is a reasonable amount for the degree and expected salary.
• It has a reasonable interest rate (this typically excludes private loans). Canada also doesn’t seem to offer as nice rates.
• It was needed to pay for college, not to fund an extravagant lifestyle while in college.
  • Disclosure: I took an undetermined amount of extra student loans to help fund my amazing study abroad experience. I did get a $5000 scholarship, but I’m sure I spent more than that. I’m not apologizing for that extravagance, even thought it doesn’t meet my own criteria. It was worth every last red cent!
• Other options were exhausted: Savings, part time jobs, scholarships and grants.

Much traditional federal student loan debt really should be viewed on a different level than credit card debt (though current rate offerings are almost 7%, a little high). However, private loan companies jumped into the game and really mucked things up. If you have $100k in 12% interest loans for a degree that commands a low salary, it is hard to say that was a good investment (individual exceptions may apply, as well as non-financial benefits of college). If you have $10k in loans at 2.0% tax deductible interest (some people do have those crazy low rates) for a degree in almost anything, it probably was a good choice.

If you have student loan debt and it doesn’t seem to fit the bill of “good debt” (and you are a pf blogger or reader), you probably are paying it off quickly if you can (go FB!). If you have “good” student loan debt, such as Well-Heeled’s zero precent interest, forever loan, you probably are not (unless you do it for the emotional payoff, which is fair). Mine is more good than bad, but not as good as others. It is at 4.5% (tax-deductible) for about $20k, commanding me almost $70k early on in my career (inflated due to high cost of living city), and more later. If I had extra money, I might pay it down, but I use my money for other priorities. I’m maxing out my 401k before I’ll pay extra on that loan. (It also will be at 0% from this September for about two years.)

I’ve heard anti-debt militants people argue that you should save up, pay as you go, and take extra time to graduate. That is certainly an option, for those of you that it suits. Financially, I doubt I would have come out ahead doing this (how much could I make with no degree?), and personally, it would have (to put it eloquently) sucked. It is an option, but not one that I was interested in.

Some other student loan information:

• From Get Rich Slowly, A rough guide to Student Loan repayment, guest post by me, geared towards those who just graduated and don’t know what to do (one year old). I wrote this because it is the info I wish I had the year before.
• Check out finaid.org: My favorite resource for federal loans.
• If you are considering consolidation of older variable rate Stafford loans, the rate has reset! Current rates for those longer out of school is 4.21%, and in the grace period, a nice 3.61%. Consolidate now to lock in those rates!
  
• For balance, a post on why student loans aren’t good and advocates paying as you go, even if it takes you 6 or more years.
• There are a lot of different ways to get a degree. Here is an interesting article about someone getting a technical certification to earn more while they pursue a degree.

I Got In!

I finally got official word that I was accepted to the graduate program I applied to! It is somewhat anti-climatic.  Since my employer is paying I wasn’t hoping for funding,  so I sort of expected to get in.

What does this mean for my finances? Not a whole lot, actually. It’s a part time program, so I’ll continue to work.  I’ll be considered a half time student so my student loans will go into deferment. Since they are subsidized, the rate will be 0%. That’ll free up $141 each month for savings, but I think I’ll continue to put $70 into my student loan payoff account. (This month, only $65 of my $141 payment went to principal!)

Long term, a M.S. degree in my field translates to roughly $10k-$15k more than a B.S. with similar experience. It’ll increase my expertise and help me advance more quickly. It’ll open more doors to have a top school on my resume. All good things!

T thinks I should take the next step and apply for a full time Ph.D for Fall 2009. I don’t even really want to go for my Ph.D., but I’m laid off in January and the economy is still poor, it is a reasonable back-up plan. Obviously, I wouldn’t go without funding. I know that graduate school should be a passion, not a back up plan. While I may be able to pull off a Ph.D. acceptance, I’m less confident about funding.

I suppose I have until fall to think about it. I have my GRE’s, my professors have electronic letters of recommendation that could be revived easily. No need to decide today.

Instead I’ll relish in my acceptance and enjoy my summer before my free time dwindles to zero!

P.S. – If I hadn’t banned myself from the grocery store, I would make Fettuccine with red pepper feta sauce, complete with homemade whole wheat pasta. The only ingredients I’m missing are chicken stock, eggs, and red peppers. It sounds like a meal T would enjoy as much as I would. He sometimes thinks my ideas of a good recipe to try are odd. I suppose it can wait a few weekends!

P.P.S – Sorry if all the food talk is too much. I am not talented enough to start a food blog, so I just sneak my food thoughts into my personal finance blog!

Costs of Learning to Sail

I have been learning how to sail! I have some pipe dreams of cruising around the world on a sailboat, though at this point in my life, that isn’t really an option. I don’t spend a lot of money on entertainment, going out, or gym memberships, so I selected sailing as my newest hobby. It is a bit more expensive than I anticipated, but to be honest, I didn’t think much about it. It sounded fun, so I signed up.

First there are the lessons. They cost $385, but I was able to pay about $150 instead of full price. This includes 3 lectures of 3 hours each, and six on the water days of 3+ hours each. I can now take the second round, which is the same price but more advanced topics. There are also some fees to get “certified”, which I was not originally aware of.  It is about $95 for a written exam and on the water exam, plus another $30 or so for a log book. I think there is one of these certifications for each of the first 2 classes, so I’d have to pay the fees two times. If I want to go further, the next step would be $445 (!) for a weekend trip that certifies me to charter my own boat.

Then there is the “gear”. I didn’t go overboard and buy a bunch of actual sailing gear, but I did purchase a $50 windbreaker, $20 sunglasses, and $20 white soled deck shoes. I could have just wore regular sneakers, but mine had black soles. If I were to get really into sailing, I might have to get “foul weather gear” but I haven’t found the need.

Between the classes and the gear (mainly the classes) I could easily spend $1000 this year learning how to sail. Then what? What am I going to do with my knowledge? T is going to take the class I just took, and we could take boats on little trips around here. However, sailing seems to be expensive and time consuming and neither one of us has a lot of time or money right now. Purchasing a sail boat is only realistic if I intend to live on it, which sounds a bit romantic but is a little to extreme for this point in my life.

I can’t afford to regularly rent boats, I really can’t afford to go out and buy a boat. Is sailing a wealthy person’s hobby? It seems like there is a mix of wealthy people and people who are free spirited. My sailing teacher has given up his life in the “rat race”, as he said. After spending a year cruising with his family, he has taken to making a living by writing on the weekdays and teaching sailing on the weekends. Not a bad life, if I don’t say so myself. (This is helped by the fact he sold a home in the L.A. area at the peak of the real estate bubble. I wish I did that.)

I don’t know what to do from here. I could continue taking classes, but I have no real goal for my sailing hobby, other than fun. It is apparent I won’t be buying a yacht or chartering a cruise to South America anytime soon. I could call my $200 spent so far a fun entertainment/educational expense, and put my sailing career on hold. I could pay $150 more for another session of six lessons. I could pay another $200 on top of that to get fully certified. But for what purpose? I can afford to learn to sail, but I can’t afford to sail on a regular basis after that. It would be kind of like how T, two summers ago when making decent money, learned how to fly private small planes for perhaps $3000 or so. He loved it, but he hasn’t been up in over a year because it is too expensive for a grad student to keep up. (I hated it. I got airsick and small planes are actually pretty dangerous.)

After moving and putting my degree on hold, I found myself with a lot more free time than I was used to, so learning to sail was one thing I chose to explore. Next fall, I’m going to be continuing my M.S. degree and I won’t have time for these hobbies. I still have a whole summer left to explore other interests, and now is the time to decide if I want to continue sailing or spend my time doing something else.

Free Education: Office politics

I signed up for a free class offered by a local university through my workplace. The class is about office politics and was brought in by the women’s leadership group. Being one month into my job, I’m not in a leadership role, nor do I have a short term goal to be there (or long term, for that matter). Still, I had a lot of reasons for signing up.

• I am addicted to learning and can’t start my “real” technical classes until fall.
• Office politics? I’m young and I’m more technical than political, so I figured it would be good to expand my horizons
• A chance to network with other women in a male dominated company
• Something to keep me busy and get me more involved in my company
• Might look good on a development plan
• 100% free to me–Never turn down free education!

I got to the class on time and took a seat at a table with a couple other women. By the time the class filled up, I noticed I was at a table with women in their 40s or older, while the table to my left had several people closer to my age. I thought, “drat. I wanted to meet some people my own age. I sure picked the wrong table.” Halfway through class I changed my mind. As a young employee, the best thing I can do is network with those who have more experience. My table seemed somewhat amused by my presence, and called it “cute” that I had signed up for the class even though I’ve only been here a month. I could take offense at the use of “cute”, but I laughed about it instead. See how cute they think I am when I politic my way up to CEO! Kidding…

We had one naive young lady who asked, incredulously, “Wait, so you mean to say that people aren’t promoted just on the basis of their hard work and talent? I find that really disturbing.” I found it surprising that anyone still believes that. Of course, hard work is quite important, as is talent, but there is more to your career than that. You don’t have to like office politics, nor do you have to play them, but at the bare minimum you should be aware of them.

It is a four session class with 3 hours in each session. We got a binder of class materials and a book. You know you have been spending too much time thinking about personal finance when you think to yourself “Sweet, free book! I wonder if I could sell it on Amazon…” (yes, for about $2) . Also, there was free snacks that counted for most of my dinner.

After this class, I plan to start a sailing class in April. Then I’m going to try to figure out if I can find a way to pay for a surfing class.   Once I do continue on with my Masters program, I’ll have no time to pursue these California hobbies.

Should you pay for your kid’s college?

RacerX and Single Ma both say they won’t (at least not 100%). Shuchong argues that her parents paid for hers and figures it was a good investment for the doors it has opened in her life.  Trent makes some points on why you shouldn’t pay, but the only one that holds up as a rule is that it is a burden on the parents.

I find the whole debate a bit perplexing. It implies that most people have the choice, which I don’t think is the case. Most parents will help their kids to the best of their ability, and if parents can’t afford to, what is there to argue about?

Paying for your kids college will no doubt give them an edge in the early stages of their life, and maybe beyond. I find that is difficult to argue. If you take two identical high school senior and pay for Student A’s education at the best school he can get into, and send Student B on his own, in most cases Student A will come out ahead.

But who cares? We’re never talking about two identical students, but individual students with unique talents, goals, and personalities. I want to emphasize that kids can be quite successful in life even if parents “choose not to” (or can’t afford to) foot the bill.

Here are my tips on how to make college affordable and still be able to compete with those who had an advantage. These tips are geared at those students who, given different financial circumstances, might have found themselves at a top school. These thoughts are not new, but I want to emphasize that they really do work and won’t put you at a huge disadvantage in life.

Scholarships/Financial Aid
This is obvious. Apply for all the scholarships you can, fill out the FAFSA, and with any luck, you won’t need to do any thing else on this list! However, don’t be fooled–it isn’t as easy as it sounds. Most students will get some help, but few will get everything provided.

Get a job while in college
Working full time is not ideal–school really does have to come first. However, in my part time jobs I never had a problem getting off of work when I needed to study. I hate hearing “my parents really wanted me to focus on school and be involved on campus, so I didn’t work.” My parents also wanted those things for me, yet I still had jobs throughout college and had a great experience. You can “do it all”, so to speak.

Very few kids who didn’t work spent more time studying than I did. For the most part, they just spent more time relaxing and goofing off with friends (which may have it’s benefits, but doesn’t further education/career. You can still “network” without having excess free time.) The worst cases simply spent a lot of time partying or smoking pot.

After the jobs related to my major, waitressing was a the best college job I had. The most money could be made on Friday or Saturday nights, and you would be done in time to go out with friends. Even if you have a job, make time to be involved in campus activities. Even if you are an officer in an organization, being involved on campus isn’t that time consuming. As an added bonus, you can add a nice bullet on your resume: “Maintained a [X] GPA while working 20 hours a week.”

Take Out Student Loans
I’m also tired of “I’m so thankful I’m not burdened with debt”.   My $133/mo really is not burdening me, especially when I think of the opportunities it provides me. Don’t be scared of loans, but don’t be careless with them either. You have to be smart about this, but student loans can be a good tool. It is silly to go into a bunch of debt to get a degree that won’t earn you much money. However, it is equally silly to forgo a low interest loan (especially subsidized) if you’ll have a strong earning potential once you graduate.

Pick a marketable major
There is something to be said for studying what you love, but understand the implications. I am not arguing that the world doesn’t need majors in comparative literature. However, studying something that has lower earning potential is a luxury. If you can get scholarships to do this, wonderful! If your parents are footing the bill, great! Have fun! Just don’t go $120k into debt to become a pastry chef (true story, saw it on Suze Orman). You’ll regret it, even if you love baking. (I do love math/science, but not everyone is a nerd like me.)

This isn’t to say you are limited to majors that lead directly to a lucrative career. If you are majoring in something impractical (or actually, anything) have a plan and be able to justify any money spent on that degree. Truly loving what you do can be justification enough, as long as you can afford to pay back any debt you incur.

Don’t go to a “brand name” school (unless financial aid makes it worth it)
I am going to admit it–a good school helps your resume for your first job. I doubt my current job would not have hired me based on my college resume, solely because my undergrad school is unrecognizable outside of the region. However, I’m less than two years out of school and working primarily with people whose college educations cost a lot more money than mine did (and getting an M.S. at top university fully paid for).

Without a brand name school, good grades are especially important. If you have mediocre grades at a mediocre school, you won’t stand out. If you are a bright student at a mediocre school, take advantage of it. Get high marks and get to know your professors. They might be able to hook you up with a grading or TA job, or they may have connections in industry. Be involved on campus, become an officer, and be an outstanding well rounded student.

After college, get your first job at the best company that recruits at your school. Do well in it, get some good experience. Perhaps you’ll find you really like your job and you are well paid, so no need to move on. If not, with a little experience you will have a good chance of getting in to any company you want to work for.

Bottom Line
Kids whose parents pay for college (especially fancy ones) simply do not have to be as motivated and outstanding those who are on their own. I’m not saying that they aren’t (there are talented and motivated students everywhere).

However, average (and below average) students at those schools will likely do better than average students elsewhere simply because of the parental advantage. Doors will be opened for them more easily, but you can open your own doors. If you are committed, hardworking, motivated, and have some sort of aptitude in something, you should be able to do just as well, even without your parents financial support.

What I’ll do for my kids
I’m not sure yet. I’ll help them to the best of my ability if they show the motivation and aptitude for college. If I can’t afford much, I’ll help them in ways my parents did–encouragement and support. I’ll also help them in ways my parents didn’t (because they didn’t know). I’ll be sure they apply for every scholarship they are eligible for. (I would have qualified for free tuition based on my ACT score had I taken them in the right month.  Still bitter.) I’ll have solid advice about the admissions process and show them outstanding schools that provide excellent financial aid. I’ll also help them navigate the financial aid office and truly understand any loans they take out. They will be personal finance experts by the time they graduate high school! And I’ll tell them everything I just wrote here (provided it still applies when my theoretical unborn children go to college!)