Will the recession make college tuition costs go down?

What's more worth it: miss a semester of college and make $5000, or go to college, and risk paying thousands?

• Ok, I have a situation. I graduated high school through summer school, so I got the diploma just recently, and was too late to apply to any colleges (all colleges have started). Except, this one private college, but their tuition costs are about $9000 per semester. Now, in USA/NY, I can apply for financial aid, which I havent so far. The private college starts on the 21st, even if I apply for financial aid today, I wont know how much aid I will get until like the 27th. The college told me they will accept me, but I accept the following RISK: I get accepted, classes start, week later my financial aid is approved, BUT, if I dont get enough aid, I will have to pay the difference, meaning I might have to pay THOUSANDs of dollars for this semester. Or I can skip this ONE semester, work during the semester and make around $5000(guaranteed), relax, and start college in Spring 2010, because then I'd be enrolled in a city college, meaning I will have no risks of having to pay differences. PROS: +I won't have to take the risk of having to potentially pay thousands (tuition is $9000, if I get about $5000, since I am applying late, I will have to pay $4000). +During the semester, instead of college, I can work and make about $5000 before the next semester starts(when I also start college). CONS: -I will miss a semester of college. IS IT WORTH IT??????

• Answer:

  M: For every student, this will have a different answer. There is certainly something to be said for working and earning money. Don't lose sight of the fact that an education is a purchase, just like any other expensive item. As a general rule of thumb, you should pay cash for what you can, and limit your borrowing to an absolute minimum. The $5000 that you pay in cash will save you a lot more than $5000, because you're not going to repay $5000 - you're going to repay $5000 plus interest. (Technically, that's not always true, by the way. Sometimes using someone else's money is a better option than using your own. This is called "leverage", and it's an important concept of business.) Missing a semester of college is not the end of the world - as you correctly recognize. However... Some students who delay college never wind up going. If $5000 seems attractive now, another $5000 will seem at least as attractive in the spring semester. Only you know if you'll stick to your plan and follow through. Every school is not the same as any other. If the private school offers a higher quality education in the field that interests you, you'll be better prepared to find jobs, you may advance higher in your profession, and the degree may open more doors for you. (or maybe not) If you're hoping to engage in the social aspect of college, you might find it easier to get involved in the "first" semester, rather than being a late arrival. Starting college one semester later graduates you one semester later. Depending on your career choice, you may miss 'hiring season" if you graduate in December. Furthermore - graduating a semester later postpones by 4-6 months when you'll start earning "real" money - which may more than compensate for the $5000 that you'll be bypassing now. My point isn't to demonstrate that one of your options is clearly better than the other. There is no one answer to your question. You'll have to consider your own, personal situation and attitudes, and weigh that against the obvious risks of being wrong. There are dozens of reasons that you can line up on either side of the issue, and there is no simple answer (but if you get enough answers, someone is certain to say "Work! Earn money! Don't borrow!). That's a very legitimate point, but it's still not the end of the debate. I wish I could make your decision for you, but ultimately, it's all about you and your situation. I wish you nothing but the best of luck in making the "right" choice.