Michigan Increases Tuition 3.9% In-State, 4.4% OOS

This is insane. I was an OOS student from a middle class family in the 90s. There is no way I could afford to go now, and unlikely my kid would be able to go as an OOS student. And I started her 529 plan at birth.

While this was in the Detroit paper yesterday, look at what was in the WSJ: http://www.wsj.com/articles/big-perks-for-college-presidents-1466101531 Connection? I think so.

I heard friends and associates complain about tuition cost while attending Michigan, I guess I was oblivious to it, but holy fuck did those guys pay a lot to attended Michigan

I graduated from the pharmacy school in 09. Since, I have become an adjunct instructor for the COP. I don't get paid to do it, you are rewarded in that you are giving back to the university and you get a cool title. I bring that up to say one of my students found out the College of Pharmacy is charging students for the spring/summer semester in their fourth year (P4) which amounts to 14k extra. Here is the kicker, they are not on campus! They are being taught by instructors like myself, who again, don't get paid. Where is this money going?!?! The students are pissed and faculty don't have good answers. This is ridiculous!

I got 2 engineering degrees from msu in the late 90s and early 2000s for less than 50 grand total including loans food, apt, cable, etc.. Would much rather have gone to Michigan but I'm sorry, it's just too expensive for a normal loan-carrying student. Has been for many years. I used to take my summer classes at Michigan because they were cheaper than normal semesters for my first degree. Now, that same set of degrees from msu would cost an untenable amount. I do not envy families with college-age kids. If my daughter wasnt an Australian citizen and thus entitled to a really cheap excellent college education, I wouldn't be sleeping much.

I recall reading a few years ago that state governments have been reducing university funding for years. This was especially true after the economic crisis in 2008. The result is that the schools had no choice but to raise tuition. (Recall the older discussions of LSU potential losing their football program? Sorry about the implication of politics.)
That said, these numbers scare the bejesus out of me.

Being a freshman now at UM in state costs $27,500 when all is said and done if you live in a dorm. More Michigan kids are doing community colege for two years and transfering in to UM. Also seeing more kids taking a year off right after high school to earn money, see the world, or grow up.

Many current UM students are also taking summer basic degree requirement classes at Washtenaw CC. Many are on line so you can do it from home. Big $ savings.

Anyway get an MESP even if your kid is a newborn! It is good for in state and out of state schools.

Learn the time value of money and compunding tax free investment... and don't gamble with this investment - a GIC (guaranteed income) investment  pays 1.6% currently for MESP. It is always between 1 and 3 % guaranteed. That's better than a CD.

Anyone can contribte to your kid's (it's not your money when the become of legal age) MESP. I believe up to $13,000/year per person tax free. It is very easy to do.

Parents can contribute $4,000 /year to tuition outside the MESP and currently get great tax advantages on that $4,000, so ideally you have $23,500 saved per year in an MESP if you want to pay for UM.

If you are out of state, God help you. I love UM but $200k for undergrad is insane.

The top tier colleges that make financial sense out state are surprisingly some private universities with big price tags (that nobody pays). FAFSA will soon become part of your vocabulary.

Good luck to all you new parents and students. The game to get in and pay for school is much tougher now and it is a real shame.

have changed over the years. The new strategy is to jack up OOS tuition and put a limit on the number of in state students you will accept. Maryland is doing this too. My coworkers who live in Montgomery County (which is one of the best for education) are complaining that it is becoming difficult to get into Maryland because they are only taking a certain number of students from Montgomery County, so they can admit more OOS kids and make more $$$$.

I can't wait until the student debt bubble blows up. The current system is a perfect storm for screwing kids.

Kids: I have to get a degree no matter how much it costs because if I don't get one I've been told I can't get a good job.

Banks: Sure we'll loan you the money no matter how much. It's bascailly no risk because the government's got our back, plus bankrupcy laws make it almost impossible for you to stop servicing till it's done or you die.

Schools: These kids will just take out loans for whatever we charge because they're afraid of being futureless and uneducated, and the banks will provide whatever loans the students ask for because in the current system it's risk free. Let's skyrocket tuition.

It's going to be hell for the economy when an entire generation nopes out on over a trillion dollars in liabilities, but it beats life long debt-based indentured service, for anyone who's not rich and wants to know what chemistry is.

For my daughter, who is attending out-of-state in a STEM program. But for a lot of majors, the return soon will be negative, if it isn't already. It's unfortunate that greater access to loans and aid has driven this, but IMO that's what's happened: Expanded access to money has made it easier for universities to pass cost increases on. Classic example of a well intentioned policy bringing unintended consequences. I don't know what the solution is--I would hate to see people shut out of education due to ability to pay (were that the case it is certainly foreseeable that one of those students could go on to develop a cure for cancer, or figure out how to harness nuclear fusion, but instead might be doing something far less productive). I guess at some point the return just won't be there and then neither will be the students.

Curious how many out-of-staters are with me in that I'll pay what it takes (assuming admission)? Or whether these outrageous numbers are changing viewpoints?

At some point there will be an enrollment crash at undergraduate institutions, just as there has been with law schools.

College in this country is so screwed up it's unbelivable. First of all, it's bullshit your student loan is based on your parent's income. What if they're not paying for anything? Mine have but very little, maybe 1/8 of it if that. And the price is so high because so many people's parents think their little pride and joy can't succeed in this world if they don't go to college like they did. Eventually the whole format will come crashing down when most people realize it's a scam at this point.

And the current annual inflation rate is 1.1%. 

My favorite part? The alumni letters asking you to give to the university. Ha! Took my wife and I ten years to pay off our student loans. There's not a chance they're getting another penny. I know this is a bad attitude, but I can't get over the fact we've given them nearly $200k already.

Looks like our scholarship athletes do get paid quite well after all

The Montgomery GI Bill was replaced by the Post-9/11 GI Bill a few years ago, which comes with a deal called the "yellow ribbon" program. The new GI Bill pays 100% of tuition at any public school in the country up to $17,500 per year (I think), and if the school of choice participates in yellow ribbon (which Michigan does), the school picks up the difference which makes your tuition completely paid for. If your kids choose to do four years of military service, their college is paid for, not to mention the tuition assistance for whatever classes they can take while in the service. I made the same deal with my four kids where I'd cover their costs for in-state tuition at any Florida public school they wanted, and recently found out that another benefit of MY Post-9/11 GI Bill is that my spouse and kids are all eligible for in-state tuition at any public school in the country because of my service. $200k for four years just turned into $48k... now multiply that by four kids, and I'm thrilled! So, bottom line - if you're a vet, check your benefits because you may be able to save 75% on your child's school, and if your child considers military service that's a very viable option that completely erases the student loan problem.

First off, thank you for posting this. Second, God damn. I've been putting away $700/month since the kids were born and it looks like I'll have to do more. Maybe I'll open an office in A2 instead and save a quarter million

The cost of edcuation in this country almost makes me sick. I was lucky enough to have parents that could afford any school I wanted. My wife on the other hand did not have the same luxury. Her parents paid for her in state tuition (in a state with a cheap mediocre state school). She got a full ride for grad school in a very employable field and took out loans for 1 year of living expenses. Almost 5 years out she is well employed (making just south of six figures) and still will be paying off that loan for several more years. The idea of financing your entire college is absolutely mind boggling to me. It makes me sad to think that our top academic institutions are becoming exclusive to kids like me. Smart, hard working kids do not only come from households making over 500k a year. But without an increase in scholarships along with tuition increases there is no way anyone else can attend. 

How about we just come together as adults and stop lying to kids? At any typical U across the country Id estimate that 50-75% of the kids enrolled are wasting their time & money. Meanwhile their mere presence drives up the price for the ones who should actually be there. It starts with US. I've hired 3 kids who were good enough students to qualify for a decent college but I offered them a 2yr path to 50k if they would stick with us. They're sharp kids w/good mechanical inclination and they are now designing and detailing machine components with minimal supervision. In 6 yrs they will have earned over 200k, gained 6yrs real world experience and be FAR ahead of that poor bastard graduating 250k in debt. Time to admit that the creation of media/www had made 75% of majors obsolete. No longer worth the paper it's on.
Too many adults trying to turn that bottom 40%er into something their never going to be and driving up the $$ for everyone.
Too many adults overvaluing their own paper by insisting those they hire have the same. All while they know full well it's completely unnecessary and bullshit. Train them to do jobs, and let the world round them. Folks this is not the 3 channels of TV and one library per county world anymore. Time to drop the self righteous bullshit about how important it is to attend "university". It ain't 1964 and everyone doesn't show up having never met a black person or someone from a varied background.

When I was a freshman in '85, OOS tuition was $5,000. The only other state school that was comparable in price was Univ of Vermont.

Fast forward 30 years,  when all is said and done, it will be about $300K for my 13 yr old to attend with room and board. Since I have two daughters, the other 10, it would cost at least $600K to attend Michigan. And they would be in debt since I could only probably fund 40% of that.

Compare this to them staying in state at UC Berkeley, UCLA, UCSB, UCSD, and UC Davis. Probably $150K. I could pay for everything for them, and for the same cost they could also get a nice down payment on a house and a car too. Which is the better deal to set them up for success?

I still root for Michigan, and got a great education there, but my connections from school really didn't do anything for me.

On another note, did anyone see Michael Moore's new movie, 'Where to Invade Next?" He goes to Slovenia to interview American students attending for free. They said the quality of the education was very good. You could also do the same in Germany, and there are a lot of classes taught in English.

Since my kids are dual citizens of Spain and the US, that's tempting for me.