Heck of a situation that would be -- "no, we couldn't afford to send DS to the state school, so he had to go to Harvard."
That is pretty realistic. Actually for us, Harvard and its ilk would be affordable, and the local state uni (kid living at home and need/merit aid) would be about equally affordable, though a let down. Most lesser privates, and out of state publics, are simply financially out of reach (though it's worth looking for exceptions). So the choice is either make it to the most elite places, or stay home (and try again for graduate school, which should be essentially free).
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Also, loans are not aid, despite what colleges call it. It should be called
pretend aid. Some colleges might have a lot of this
pretend aid, and others might have little or none. You have to look at the whole package and figure out, bottom line, what you're going to be paying (including interest), and decide if it's worth it, and if it's even affordable. Someone thinking that a loan is
really aid, is like someone buying something with a credit card and thinking they're getting it for free. People need at least some basic financial literacy.
That said, while some people recklessly take on too much debt, others are too cautious. There is a place for some manageable debt. If you borrow $5k/year for 4 years, and then get a $50k/year job, you can easily pay off the debt in a year or two.
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I have heard of some folks with only one kid or two very close in age joke that they would quit their jobs a few years before the kid goes to college and then work as a Wal-Mart greeter, making just enough to get by. This is actually not a bad strategy - make just under $65K a year and have the entire $60K COA covered.
I think a lot of people would quit their job and then work as a Wal-Mart greeter, if they would make just under $65K a year.
But, seriously, this is what I am seriously considering (except for the Wal-Mart greeter part). I'm seriously considering retiring (early) just before my oldest starts college, and I'm saving like crazy (in retirement accounts) to try to reach that goal. I'd wait and see my situation then, but depending on the college, it may be that the income means test, which can act like an additional 47% "tax", makes working barely worth it. Of course places like Harvard are so cheap, even for modestly above average incomes, that I could afford it even if I did keep working.
