Last night I decided to put together a spreadsheet of what it has cost financiallly for my DH to do his MBA. Unfortunately where we live there are no part-time programs at a public university. I’m a firm advocate and believer in a public education system. My DH and I both went K-12 and university at public institutions.
However I realize some people need a smaller, more controlled private environment. And not all children are the same. My sister has 3 kids and 2 are fine in public schools. One child with a learning disability need the private school attention and class size. But she too has no hesistate sending her kids to a public school.
My DH started his MBA in Fall 2006. He has taken on average 2 classes/semester and some summer classes. He currently has finished 47 credits, registered for another 6 credits or 2 classes this semester. The total cost of his tuition has been $56, 836. Or an average of $1072/credit taken. OUCH!
He still has another 12 credits to finish up at an average price of $1142/credit for Spring 2009 but it will go up in Fall 2009. So we will still need to pay at least $13,704 to finish my DH’s degree for a grand total of $70,540 in tuition alone! I did not count the fees, parking, books, etc. That’s been around another $3k we’ve spent on extras. We have thus far borrowed $21,250, thus our portion which we have paid cash for has been $35,586. A new car or a baby! Woohoo!
OMG, writing it out makes it real. I knew it was a lot of money but I’ve been pretending to not notice because it’s easier. That is an average of $35,586/27 months = $1318/month. Damn, I knew our money was going somewhere. No wonder we still feel broke though we’re making reasonably good money and have little bills or debt.
I think I need to dunk my head in the sand again. It’s better that way than staring at these outrageous tuition bills. I cannot believe people pay this much.
I have no idea what this return on investment will be. I don’t know if we made a wise or foolish decision in investing in my DH. Only the future will tell. But perhaps the opportunity for him to learn something different and gain experience is worth enough.
This is eye opening for college costs. I hope parents who are sending their kids are reading this!
14 responses so far ↓
1 Fabulously Broke // Dec 12, 2008 at 4:59 pm
Am linking to this one. Everyone should know what it costs!!!!
Did you also factor in lost wages because he’s in school? Or was he working FT as well? I forget.
That’s a real eye opener.
2 fengshui // Dec 12, 2008 at 11:19 pm
I feel your pain….. My DH has gone back to school as well, but finishing his BS Business. He is going to an evening program, it is considered PT, but he goes year round, so he earns about 30 credits a year at $500 per credit. He ultimately wants to be in construction/ project managament with an emphasis in eco/ green construction. He has taken out all loans this year so far, and by the time he is done, he will have borrowed $25k…. Wow. I presume this will pay off…. but then, between the two of us, collectively we will have $50k in student loan debt. This is fairly upsetting to me. Thankfully a large chunk of mine was undergrad debt and the rate is very low, under 3%, but still has to be paid back…… And of course, we both have lost wages from working less by being in school. I only work 24-26 hours a week and I’m losing close to $30k by missing this income. However, it WILL pay off for me, by securing a job that I will enjoy more, as well as pay more. So, I see it as an investment.
What is his ultimate goal by getting his MBA? Will he ultimately secure a higher paying position or a position that he enjoys more?
As far as parents reading this, well, I do have plans to pay for ONE degree for my child. They can get a bachelor’s degree, but when it comes to grad school or getting a second degree, then they can pay for it…..
4 LAL // Dec 13, 2008 at 9:15 am
His ultimate goal is to start his own company. He will secure a higher paying position as well and increase his marketability across multiple sectors and fields.
5 Kimberly Ayscue // Dec 13, 2008 at 9:52 am
I, too, am a supporter of public education. I come from a family of teachers and when I graduate in 2011, may teach as well. My classes at a public university, East Carolina Univ, cost 99/credit hour. My son’s tuition at Florida State is comparable. He wants his Masters but is looking at the Navy OCS so he can get money since mom stops being the bank after 4 years in college
6 fengshui // Dec 14, 2008 at 12:28 am
Wow. $99 a credit sounds fantastic! I go to a public university for graduate school and it is $500 per credit, and is going to go up again, about 7% next year……
LAL, sounds like paying for the MBA is a good deal in the long run, if it will ultimately lead to higher wages. I hate to mention it, but do you guys have a prenup? You’re spending a chunk of your own personal income for your hubby’s education. If he should start his own company and make a landfall, and you should divorce, you deserve to be compensated for how you supported him/ helped pay his tuition. I sincerely hope this never happens. I just would want you to be prepared for the worst. And I’m not sure if you’re in a community property state, etc.
7 LAL // Dec 14, 2008 at 8:58 am
No, no prenup. Both of us had crap when we started out. No money, but who does at 20? Right now I don’t think we’re in a community property state. But I believe we’ll be living in a community property state soon enough.
Besides if he starts a company I’m getting a letter of equity and he knows it. We’d be putting up our “joint” savings and collateral the house as “investors”. And honestly I’d probably stay married until the company sold for financial reasons.
Besides, once we have kids it’s all over for both of us. We’re not getting divorced and he’s not leaving unless I kick him to the curb.
8 fengshui // Dec 14, 2008 at 9:23 pm
sounds like a plan
9 Andy @ Retire at 40 // Dec 16, 2008 at 2:33 pm
This post has been featured on the 89th Carnival of Money Stories at Retire at 40.
It is interesting how much these things cost us. Great to help spread the word so people can plan for it correctly.
10 saved to save // Dec 22, 2008 at 10:33 pm
I went to a private university. After 4 years at a cost which started at 40,00 my first year and 50,000 y last year, I walked out of college with 71000 in debt. At the end of the day i know its because of my degree that I got my job, but I have to admit one thing I learned from friends and colleague’s is go to a reasonablly affordable undergrad and then go to a Graduate/Professional program. Most often its the second degree that gets you where you need to be.
Granted I had a scholarship but I have friends who left college almost 200,000 in debt, FOR UNDERGRAD! not all my 71000 is student loans there were other little debts mixed in.
12 LAL // Dec 31, 2008 at 5:44 pm
Ouch about the student loans.
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