Money Momma

Dear Jewish Fairy Godmother:

I’m trying to help my son decide about grad school. He’s a good kid,
perhaps a little sheltered, who got great grades in honors college, then
took a gap year, and is applying for physical therapy school. It is both
very competitive and very expensive. He applied to five places and
through a clerical mishap missed a deadline for one. His two preferred
school are out west but he just got accepted to a very prestigious
program in the metro northeast, the only that actually gives
scholarships. This decision could be the difference between starting a
profession with as much as $150k in debt. How can I convince him
how important it is to not start life in the hole just because he likes to
camp and ski?

Money Momma

Dear Money Momma:

In the history of humans there’s never been a family in which parents
didn’t know better than kids what they should do. That is if you ask
the parents. These same folks probably ignored all the well-intentioned
advice of their own elders and bounced back (or didn’t). The moral of
the story: bring right doesn’t always convince anyone how to act.
Help your son keep all his options in play. If there’s a (relatively
minimal) fee to hold his place in the place that said Yes, until he hears
from all the schools, go ahead and pay it. Make sure he understands
that eventually he is going to have to decide but that he’s now in the
fortunate position of being able to use the early acceptance to
leverage the places he haven’t heard from yet. My advice, calling or
emailing the other schools and saying: I got into [prestige school] and
I’m waiting to hear about scholarship money. Can you please tell me
when I am likely to hear from you about acceptance, and whether or
not you do fund any beginning student.

Then sit down with him and do the math. Be sure to factor in all the
relevant variables, like how soon he might be paying in-state tuition at
the far-off schools, and the likely revenue stream for his first five-ten
years of employment, based on average salaries. Young folks don’t
usually understand the burden of debt. But seeing the numbers written
down in a spreadsheet, and seeing his future disposable income at
low-to- zero in some options and much higher in others might have an
impact. In the long run, he has to be happy, and he gets the last vote.